Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views

This study investigates the feasibility of outsourcing tax audit work in Malaysian tax system to enhance administration efficiency, to curb tax evasion and abusive avoidance, and to improve revenue collection without introducing a new tax. The current tax audit, carried out by internal auditors of I...

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Main Authors:	Norsiah Ahmad, Zakiah Muhammadun Mohammed, Takiah Mohd Iskandar, Mustafa Mohd Hanefah, Sellywati Mohd Faizal
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/8366/ http://journalarticle.ukm.my/8366/ http://journalarticle.ukm.my/8366/1/7763-20192-1-SM.pdf

id	ukm-8366
recordtype	eprints
spelling	ukm-83662016-12-14T06:47:03Z http://journalarticle.ukm.my/8366/ Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views Norsiah Ahmad, Zakiah Muhammadun Mohammed, Takiah Mohd Iskandar, Mustafa Mohd Hanefah, Sellywati Mohd Faizal, This study investigates the feasibility of outsourcing tax audit work in Malaysian tax system to enhance administration efficiency, to curb tax evasion and abusive avoidance, and to improve revenue collection without introducing a new tax. The current tax audit, carried out by internal auditors of Inland Revenue Board of Malaysia, could only be performed on a small numbers of taxpayers due to high administrative cost in terms of audit cost and cost to employ and train more audit personnel. Nevertheless, without tax audit, tax non-compliance activity could not be curbed and government would be at high risk of losing its revenue. One of the possible ways to increase audit work is through strategic outsourcing. However, decision to outsource tax work should be critically examined because outsourcing of tax audit is a policy that could potentially affect every taxpayer. This paper discusses the views of the stakeholders (tax authorities, the taxpayers and tax agents) on the value of tax audit outsourcing. Using a mixed method approach, this study finds contradicting opinions on the idea of implementing external tax audit in Malaysia. While the tax authorities are hesitant to the idea, the companies as tax payers and the tax agents show favorable responds to the implementation of outsourced tax audit in Malaysia. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8366/1/7763-20192-1-SM.pdf Norsiah Ahmad, and Zakiah Muhammadun Mohammed, and Takiah Mohd Iskandar, and Mustafa Mohd Hanefah, and Sellywati Mohd Faizal, (2014) Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views. Jurnal Pengurusan, 41 . pp. 13-24. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This study investigates the feasibility of outsourcing tax audit work in Malaysian tax system to enhance administration efficiency, to curb tax evasion and abusive avoidance, and to improve revenue collection without introducing a new tax. The current tax audit, carried out by internal auditors of Inland Revenue Board of Malaysia, could only be performed on a small numbers of taxpayers due to high administrative cost in terms of audit cost and cost to employ and train more audit personnel. Nevertheless, without tax audit, tax non-compliance activity could not be curbed and government would be at high risk of losing its revenue. One of the possible ways to increase audit work is through strategic outsourcing. However, decision to outsource tax work should be critically examined because outsourcing of tax audit is a policy that could potentially affect every taxpayer. This paper discusses the views of the stakeholders (tax authorities, the taxpayers and tax agents) on the value of tax audit outsourcing. Using a mixed method approach, this study finds contradicting opinions on the idea of implementing external tax audit in Malaysia. While the tax authorities are hesitant to the idea, the companies as tax payers and the tax agents show favorable responds to the implementation of outsourced tax audit in Malaysia.
format	Article
author	Norsiah Ahmad, Zakiah Muhammadun Mohammed, Takiah Mohd Iskandar, Mustafa Mohd Hanefah, Sellywati Mohd Faizal,
spellingShingle	Norsiah Ahmad, Zakiah Muhammadun Mohammed, Takiah Mohd Iskandar, Mustafa Mohd Hanefah, Sellywati Mohd Faizal, Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views
author_facet	Norsiah Ahmad, Zakiah Muhammadun Mohammed, Takiah Mohd Iskandar, Mustafa Mohd Hanefah, Sellywati Mohd Faizal,
author_sort	Norsiah Ahmad,
title	Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views
title_short	Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views
title_full	Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views
title_fullStr	Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views
title_full_unstemmed	Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views
title_sort	outsourcing malaysia federal tax audit: the stakeholders’ views
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/8366/ http://journalarticle.ukm.my/8366/ http://journalarticle.ukm.my/8366/1/7763-20192-1-SM.pdf
first_indexed	2023-09-18T19:52:13Z
last_indexed	2023-09-18T19:52:13Z
_version_	1777406295287005184

Outsourcing Malaysia federal Tax Audit: the Stakeholders’ views

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