http://afr.sciedupress.com Accounting and Finance Research Vol. 13, No. 1; 2024 Published by Sciedu Press 67 ISSN 1927-5986 E-ISSN 1927-5994 Reconceptualizing Tax Compliance Behavior: A Theoretical Matrix Approach Deena Azriana Wan Mohd Azmi 1,2 & Seri Ayu Masuri Md Daud 1 1 Faculty of Accountancy, Universiti Teknologi MARA Selangor Branch, Puncak Alam Campus, Selangor, Malaysia 2 Tax Audit Section, Inland Revenue Board, Malaysia Correspondence: Seri Ayu Masuri Md Daud, Faculty of Accountancy, Universiti Teknologi MARA Selangor Branch, Puncak Alam Campus, Selangor, Malaysia. E-mail: seriayu@uitm.edu.my Received: January 3, 2024 Accepted: February 15, 2024 Online Published: February 22, 2024 doi:10.5430/afr.v13n1p67 URL: https://doi.org/10.5430/afr.v13n1p67 Abstract Tax compliance behavior is a multifaceted and extensively explored phenomenon within behavioral economics. However, due to its intricate nature, achieving a full grasp of this topic remains a challenge. This paper is motivated by the lack of coherent structure and lucidity in the existing theoretical frameworks employed to elucidate tax compliance behavior. Firstly, this paper puts forth a novel perspective that seeks to transcend the traditional binary framework of taxpayer behavior, which typically categorizes taxpayers as either compliant or non-compliant. Instead, this paper posits that taxpayer behavior may exist along a spectrum spanning from complete compliance to absolute non-compliance. This conceptual shift aims to provide a more nuanced understanding of taxpayer behavior by acknowledging the potential for varying degrees of compliance. Secondly, to address the existing gaps in the theoretical foundations of factors influencing tax compliance behaviour, the paper introduces a theoretical matrix. This matrix is intended to serve as an organized framework that succinctly encapsulates the prevalent theories underpinning studies concerning the determinants of tax compliance behavior. By methodically categorizing these theories based on ‘types of compliance’ and ‘types of factors’ dimensions, the matrix provides researchers and practitioners with a cohesive overview of the diverse factors influencing taxpayer behavior. Keywords: behavioral economics, continuum perspective, tax compliance, theoretical matrix 1. Introduction Taxation is the primary source of revenue for most governments (Federal Government Revenues, 2021). Tax non-compliance may dramatically suppress tax revenue collection, which is detrimental to the government budget (Oh & Ki, 2020). Hence, it is critical to ensure that all taxpayers pay their tax obligations. To this end, the government enacted tax laws to regulate tax collection and exert control over the macroeconomic environment (Nguyen et al., 2020). Despite the efforts of tax authorities, the government continues to struggle with tax non-compliance issues. Tax compliance presents a fascinating dynamic, encompassing voluntary, forced, or a mixture of both. The challenge for researchers lies in the inherent unobservability of these compliance types. Even in the absence of severe tax-related sanctions, certain taxpayers may voluntarily fulfill their tax obligations as a matter of personal responsibility. This phenomenon perplexes researchers employing the economic deterrence theory to decipher taxpayer behavior. Adding complexity, compliance behavior is dynamic, subject to change due to various factors influencing taxpayers' capacity and motives to comply (Kasipillai & Abdul-Jabbar, 2006; Stam & Verbeeten, 2017). Factors such as an increased probability of detection, taxpayers' level of tax knowledge, tax penalties, and a taxpayer's financial situation wield distinct effects on compliance. This intricacy in understanding tax compliance has sustained an interest among diverse researchers, spanning disciplines such as accounting, economics, political science, public administration, and psychology. Numerous scholars, including Bello and Danjuma (2014), Dularif and Rustiarini (2022), Horodnic (2018), Kirchler et al. (2010), Ritsatos (2014) and Young et al. (2016) have reviewed findings of past studies and the underlying theories. Complementary contributions come from authors like Al-Ttaffi and Abdul-Jabbar (2015), Bornman and Ramutumbu (2019), De Clercq and Aprea (2023), Kamleitner et al. (2012), Prichard et al. (2019), and Smith and Kinsey (1987), who develop conceptual frameworks for tax compliance