Factors that influence differences in interpreting public ruling: In achieving high tax compliance

Tax is an essential financial model that administered by the government by the way of collection of tax from individuals or corporations. Taxes are essential sources of income use by government for development of a country as well as to accommodate the public services responsibility. For decade research has been done on the tax compliance aspect and various factor has identified that might impact the collection of tax revenues. Interpretation never been an important aspect in the research and the closest research in Malaysia is readability test on Income Tax Act (ITA) 1967 and Public Ruling (PR) the explanatory tax materials. Accordingly in this study, it is aimed to explore further on the PR and examine factors that influence differences in interpreting PR that might impact compliance level of taxpayers. This study is mainly focused on the factor that influence differences in interpreting PR and constructed in a form of survey questionnaire. The population of analysis is licenced tax agents in Selangor, Malaysia who were selected via a simple random sampling collected from licenced tax agent list available at Inland Revenue Board of Malaysia (IRBM) portal. This research focusses on establishing factor that influence difference in interpreting therefore measurement element that need to cover is interpretation or understandability. The findings appear to be significantly positive in relationship in constructed word, presentation material, educational background and working experience with difference in interpreting PR among tax agent in Selangor, Malaysia. This research outcomes assumed to be an added value to tax knowledge and literatures and for future research in tax environments. Meanwhile, it could help tax authorities to improve upcoming PR texts where it utilized in achieving high tax compliance