The Effects of Social Media on Tax Compliance: A Mediating Role of Tax Morale

Abstract

This study examined social media, tax morale, and tax compliance behaviour. Partial Least Square-Structural Equation Modelling (PLS-SEM) was utilized to investigate the quantitative data gathered from 592 salaried and self-employed taxpayers in East Malaysia, comprising two regions – Sabah and Sarawak. The results showed that social media had no significant effect on tax compliance. There was, however, a significant and negative relationship between social media and tax morale. A significant and positive effect of tax morale on tax compliance was also discovered. The bootstrapping technique indicated that tax morale mediates the association between social media and tax compliance. This research is among the earliest in a developing country to investigate the effect of social media in enhancing tax compliance, thus, contributing to the tax literature with a broader focus.

Citation

Bakar, M.A.A.A., Palil, M.R. and Maelah, R. (2023), "The Effects of Social Media on Tax Compliance: A Mediating Role of Tax Morale", Hasseldine, J. (Ed.) Advances in Taxation (Advances in Taxation, Vol. 30), Emerald Publishing Limited, Leeds, pp. 197-217. https://doi.org/10.1108/S1058-749720230000030006