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Zakat Theory

1325 Words6 Pages

2.1 Prior studies on Zakat Compliance and Bank Efficiency Majority of the studies on compliance behavior focused on understanding tax compliance behavior. The oldest theoretical model at our disposal is Economic Deterrence Theory. It was developed by Allingham and Sandmo in 1972 and has been used by researched in exploring the mystery of tax compliance behavior at different parts of the world. The model assumes that the decision of payment depends on the trade-off between tax savings and the risks of audit and penalties. Although, Zakat is often referred to as Islamic tax but it is different than conventional taxation systems in many aspects. One of the most significant differences is that the payment of Zakat is voluntary in most Muslim Countries and the reward for …show more content…

The model proposed that attitude and subjective norm has a significant influence on a person’s intention which in turn shapes his (her) actual behavior. Attitude is a person’s own evaluation of the behavior and subjective norm is defined as the social pressure to perform the desired behavior. Perceived behavioral control is an individual’s ability to perform the actual behavior. Because of the applicability of this theory to explain different types of social behavior, Zakat compliance behavior can and has been studied using TPB. Zainol and Kamil (2009) and Zainol (2013) found attitude, subjective norm and perceived behavioral control to have positive influence intention and Intention has a positive influence on Zakat compliance behavior. Hence, following hypothesis is proposed: H_1: Attitude positively influences intention of Individual Zakat payers. H_1: Subjective norm positively influence intention of Individual Zakat payers. H_3: Perceived behavioral control positively influences intention of Individual Zakat

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