Impact of Technological Advancements on Tax Compliance Among Individuals in Southern West Malaysia

This conceptual research paper aims to examine the effects of technological innovation and tax management on the compliance of income tax among individual taxpayers in the southwest of Malaysia. In light of the e-tax and other related technologies, the paper discusses how tax administration and technologies, which are the independent variables, influence tax compliance which is the dependent variable. While digitalization has led to increases in efficiency and transparency, issues such as the digital divide, inadequate infrastructure, and data privacy concerns remain a barrier to widespread use, especially in rural regions. Based on the theoretical frameworks of the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT), this paper proposes a mixed-method research design for future empirical study. The qualitative component is through interviews with officers from the Inland Revenue Board of Malaysia (LHDN) while the quantitative is through administering questionnaires to individual taxpayers in some of the urban, suburban and rural regions of Southern West Malaysia. Thus, the objective of this research is to understand the challenges to the implementation of digital tax platforms and provide recommendations to improve compliance among taxpayers, which will help in the development of a fair and effective tax system.