Corporate tax administration in Malaysia: managing and improving compliance
Corporate tax administration in Malaysia: managing and improving compliance
These tax administration and compliance incur significant costs respectively to the authority and taxpayers. Administrative costs are more complicated to be theorised due to their discontinuity and parallel directions with tax rates. Compliance costs, on the other hand, have been hypothesised to be positively associated with complexities, reliance on tax agents, SAS and pace of change in tax system. This explains the rise of tax compliance cost as a consequence of complicated tax systems or policy. By analysing the data hand-collected from IRBM’s (Inland Revenue Board of Malaysia) annual reports, this study draws inferences about the parallel relationship between administration costs and tax revenue. This study also finds little evidence on tax collection incremental effects of IRBM’s visit events. These findings motivate future studies to investigate the institutional determinants of the effectiveness of tax administration. From the authority context, in addition to the existing risk measurements, the IRBM should further assess the potential noncompliance of firms based on firm-specific characteristics and firm corporate governance conduct.
426-429
Abdul Wahab, Nor Shaipah
a82249c8-c6c5-4f02-8b00-ba0172f70a23
4 December 2013
Abdul Wahab, Nor Shaipah
a82249c8-c6c5-4f02-8b00-ba0172f70a23
Abdul Wahab, Nor Shaipah
(2013)
Corporate tax administration in Malaysia: managing and improving compliance.
Journal of Advanced Management Science, 1 (4), .
(doi:10.12720/joams.1.4.426-429).
Abstract
These tax administration and compliance incur significant costs respectively to the authority and taxpayers. Administrative costs are more complicated to be theorised due to their discontinuity and parallel directions with tax rates. Compliance costs, on the other hand, have been hypothesised to be positively associated with complexities, reliance on tax agents, SAS and pace of change in tax system. This explains the rise of tax compliance cost as a consequence of complicated tax systems or policy. By analysing the data hand-collected from IRBM’s (Inland Revenue Board of Malaysia) annual reports, this study draws inferences about the parallel relationship between administration costs and tax revenue. This study also finds little evidence on tax collection incremental effects of IRBM’s visit events. These findings motivate future studies to investigate the institutional determinants of the effectiveness of tax administration. From the authority context, in addition to the existing risk measurements, the IRBM should further assess the potential noncompliance of firms based on firm-specific characteristics and firm corporate governance conduct.
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Published date: 4 December 2013
Organisations:
Centre of Excellence in Decision, Analytics & Risk Research
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Local EPrints ID: 360923
URI: http://eprints.soton.ac.uk/id/eprint/360923
ISSN: 2168-0787
PURE UUID: f09c0b88-e13b-4822-8c00-23ffcf43f04b
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Date deposited: 09 Jan 2014 11:10
Last modified: 14 Mar 2024 15:44
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Nor Shaipah Abdul Wahab
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