Determinants of Tax Evasion Intentions: Evidence from Malaysian Cooperative Board Members

This study investigates the determinants of tax evasion intention among cooperative board members in Malaysia using the Extended Theory of Planned Behaviour (ETPB), focusing on attitude, subjective norms, perceived behavioural control, and moral obligation. Survey findings reveal that attitude does not significantly influence tax evasion intention, suggesting that personal beliefs alone are insufficient to explain compliance behaviour. In contrast, subjective norms, perceived behavioural control, and moral obligation are significant predictors, with moral obligation emerging as the strongest determinant, underscoring the importance of ethical and duty-driven considerations in discouraging tax evasion. The results highlight that social expectations and peer influence play a strong role in shaping tax-related decisions, while perceived behavioural control reflects that although board members believe they have discretion over tax matters, their actions are constrained by regulations and enforcement. From a policy perspective, reducing tax evasion requires strategies beyond legal enforcement, including strengthening cooperative governance, promoting ethical leadership, fostering trust in tax institutions, embedding integrity-based values in organizational culture, and implementing educational initiatives that reinforce the moral responsibility of tax compliance. By integrating behavioural, social, and ethical dimensions, policymakers can foster a culture of compliance and mitigate tax evasion risks in the cooperative sector.