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Cooperative Tax Compliance Framework for Malaysian Tax Authority

The existence of the cooperative compliance concept is a sign of evolvement in tax compliance where compliance towards tax law is settled on the basis of cooperation between the tax authorities and taxpayers to ensure the timely payment of the right amount of tax. Cooperative tax compliance which is...

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Main Authors: Saad, Natrah, Ibrahim, Idawati, Mat Udin, Noraza
Format: Monograph
Language:English
Published: UUM 2021
Subjects:
HF5601 Accounting
Online Access:https://repo.uum.edu.my/id/eprint/29646/1/13804.pdf
https://repo.uum.edu.my/id/eprint/29646/
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spelling my.uum.repo.296462023-07-30T10:28:37Z https://repo.uum.edu.my/id/eprint/29646/ Cooperative Tax Compliance Framework for Malaysian Tax Authority Saad, Natrah Ibrahim, Idawati Mat Udin, Noraza HF5601 Accounting The existence of the cooperative compliance concept is a sign of evolvement in tax compliance where compliance towards tax law is settled on the basis of cooperation between the tax authorities and taxpayers to ensure the timely payment of the right amount of tax. Cooperative tax compliance which is built on trust and transparency as well as predictability and certainty requires tax authority and taxpayers to collaborate in achieving optimal compliance. This open relationship approach allows taxpayers to receive advance certainty and have reduced compliance costs while the tax authority benefits from more efficient use of limited resources. Following the recommendation by the Organisation for Economic Co-operation and Development (OECD), 24 countries namely Australia, Austria, Canada, Denmark, Finland, France, Germany, Hong Kong, Hungary, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Russia, Singapore, Slovenia, South Africa, Spain, Sweden, UK, and USA) have implemented this enhanced relationship. Notwithstanding the success stories of its implementation in developed countries, this scheme is yet to be formally adopted in Malaysia. In line with that, the perceptions of 48 tax professionals and four tax administrators were sought through survey and interview in order to understand their views on the feasibility of cooperative tax compliance in Malaysia. The survey respondents were systematically selected among 2,800 tax professionals who registered with the Inland Revenue Board Malaysia (IRBM). As for interview, the participants were invited based on their experience dealing with cooperative tax compliance. Generally, they consistently believe that cooperative tax compliance is feasible but subject to certain conditions. These include simplicity of tax laws, mind-set change of tax administrators, tax education, transparency, mutual trust, and adequacy of tax personnel. Based on the aforementioned findings together with a review on cooperative tax compliance adopted in other developed countries, this study proposes a framework of cooperative tax compliance for the Malaysian environment. It is hoped that this framework will strengthen the current compliance strategies by offering a quality compliance approach. UUM 2021 Monograph NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/29646/1/13804.pdf Saad, Natrah and Ibrahim, Idawati and Mat Udin, Noraza (2021) Cooperative Tax Compliance Framework for Malaysian Tax Authority. Technical Report. UUM. (Submitted)
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HF5601 Accounting
spellingShingle HF5601 Accounting
Saad, Natrah
Ibrahim, Idawati
Mat Udin, Noraza
Cooperative Tax Compliance Framework for Malaysian Tax Authority
description The existence of the cooperative compliance concept is a sign of evolvement in tax compliance where compliance towards tax law is settled on the basis of cooperation between the tax authorities and taxpayers to ensure the timely payment of the right amount of tax. Cooperative tax compliance which is built on trust and transparency as well as predictability and certainty requires tax authority and taxpayers to collaborate in achieving optimal compliance. This open relationship approach allows taxpayers to receive advance certainty and have reduced compliance costs while the tax authority benefits from more efficient use of limited resources. Following the recommendation by the Organisation for Economic Co-operation and Development (OECD), 24 countries namely Australia, Austria, Canada, Denmark, Finland, France, Germany, Hong Kong, Hungary, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Russia, Singapore, Slovenia, South Africa, Spain, Sweden, UK, and USA) have implemented this enhanced relationship. Notwithstanding the success stories of its implementation in developed countries, this scheme is yet to be formally adopted in Malaysia. In line with that, the perceptions of 48 tax professionals and four tax administrators were sought through survey and interview in order to understand their views on the feasibility of cooperative tax compliance in Malaysia. The survey respondents were systematically selected among 2,800 tax professionals who registered with the Inland Revenue Board Malaysia (IRBM). As for interview, the participants were invited based on their experience dealing with cooperative tax compliance. Generally, they consistently believe that cooperative tax compliance is feasible but subject to certain conditions. These include simplicity of tax laws, mind-set change of tax administrators, tax education, transparency, mutual trust, and adequacy of tax personnel. Based on the aforementioned findings together with a review on cooperative tax compliance adopted in other developed countries, this study proposes a framework of cooperative tax compliance for the Malaysian environment. It is hoped that this framework will strengthen the current compliance strategies by offering a quality compliance approach.
format Monograph
author Saad, Natrah
Ibrahim, Idawati
Mat Udin, Noraza
author_facet Saad, Natrah
Ibrahim, Idawati
Mat Udin, Noraza
author_sort Saad, Natrah
title Cooperative Tax Compliance Framework for Malaysian Tax Authority
title_short Cooperative Tax Compliance Framework for Malaysian Tax Authority
title_full Cooperative Tax Compliance Framework for Malaysian Tax Authority
title_fullStr Cooperative Tax Compliance Framework for Malaysian Tax Authority
title_full_unstemmed Cooperative Tax Compliance Framework for Malaysian Tax Authority
title_sort cooperative tax compliance framework for malaysian tax authority
publisher UUM
publishDate 2021
url https://repo.uum.edu.my/id/eprint/29646/1/13804.pdf
https://repo.uum.edu.my/id/eprint/29646/
_version_ 1773546684080455680
score 13.211869

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