A system is considered successful if the take-up rate is high. In Australia and the United States, tax e-filing users have reached more than 80 percent of total taxpayers. However, in Malaysia, the take-up rate of tax e-filing system by individual taxpayers is still considered low. Therefore, it is puzzling on the background of those who do not like to e-file and who like to e-file. The aim of this paper is to identify the characteristics of users and non-users of tax e-filing system in Malaysia. This is important as understanding the characteristics of users and non-users of e-filing can help the government in making decision on the strategies to tackle the specific groups effectively, rather than implementing a general strategy in promoting the system. This study found that the main characteristics that influence a taxpayer to e-file or not are: gender, age, ethnicity and educational level.
Keywords: e-filing, personal taxpayers, income tax, Malaysia
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