The collection of assessment tax is becoming more challenging to the local government in Malaysia. Many local governments are facing with the issue of assessment tax arrears due to several factors either it is within their control or beyond their control. In Malaysia, the problem of tax arrears is becoming an issue in many local governments since it can give a result to critical level of revenue collection performances. The amount of assessment tax arrears amounted RM168 million in 2009. The current account of most authorities is always in deficit due to the outstanding arrears in assessment.This paper represents a review of the Malaysian local government assessment tax arrears where the highlight is on two determinants which are adopted and adapted from Fishers tax compliance model.
