Tax Compliance Management Strategies Adopted By The Inland Revenue Board of Malaysia: A Case Study of The Inland Revenue Board of Malaysia
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Date
2014
Authors
Ahmad, Mohammad Firza
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Publisher
Universiti Sains Malaysia
Abstract
This research is the study of the tax compliance management strategies of the Inland Revenue Board of Malaysia (IRBM). The IRBM is an agency of the Ministry of Finance Malaysia that is responsible for the management and collection of direct taxes in Malaysia. Direct taxes are the main source of revenue of the Federal Government of Malaysia. Therefore, the IRBM’s role within the context of the public sector is very important and significant. The collection of direct taxes is dependent upon the effectiveness of the IRBM in managing and devising strategies of its core activity, i.e. tax compliance management.
This research adopts the qualitative study approach which is more holistic and practical to address the issues pertaining to the tax compliance management strategies of the IRBM. The primary data was gathered through personal interviews with seven IRBM officers representing different levels, departments and branches and field observation of the tax compliance activities of the IRBM. Secondary data was also collected from IRBM’s internal documents and public documents to supplement and enhance the primary data collection. This study has identified three key issues – the weaknesses of the tax base expansion activities, tax education activities setbacks and the limitation of the compliance systems. Key practical recommendations are reorganizing the business census activity, introducing tax audit functions within the Detection Unit, reorganizing the Business Support Unit programme, automation of specific desk audit functions and linking the IRBM tax compliance systems. This study is confident that the implementation of these recommendations will enable the IRBM to strengthen its tax compliance management strategies.
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Keywords
Tax compliance management strategies , Inland Revenue Board of Malaysia