Background Every country of the world face countless tax evasion. Tax evasion is a disease that would potentially disrupt a government and subsequently leads to country bankrupt. This disease requires the joint effort both tax authorities and policymakers to ensure it is under control. Purpose The objective of this research paper is to determine the factors that affect ethical rationalization on tax evasion issues within Malaysians. Three variables are being examined, namely perceived fairness towards tax system, trust in government, and religiosity.