Outsourcing Malaysia Federal Tax Audit: The Stakeholders’ Views

Ahmad, Norsiah; Mohammed, Zakiah Muhammadun; Iskandar, Takiah Mohd; Hanefah, Hajah Mustafa Mohd; Faizal, Sellywati Mohd

doi:10.17576/pengurusan-2014-41-02

Cited by 6 publications

(6 citation statements)

References 21 publications

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“…This leads to a deep understanding of the financial position of the enterprise and its performance by analyzing the main financial indicators. The use of the analytical procedures during the planning of the auditing process helps the auditor to determine the nature of the auditing procedures used by him/her to obtain the necessary evidence for some accounts balances or a group of transactions (Montgomery et al, 2002;Ahmad, 2014) points out that the most stage where the analytical procedures are used at accounting divan is the planning stage. Based on the above, the first sub-hypothesis can be developed:…”

Section: Stages Of the Auditing That The Analytical Procedures Used Omentioning

confidence: 99%

The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit "The Jordanian Income and Sales Tax Department"

Mansour¹,

Kalib²

2019

IBR

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The study aimed to exam the impact of using the analytical procedures on reducing the cost of a tax audit in the Jordanian Income and Sales Tax Department. To achieve the aim of the study, the analytical descriptive approach has been used and a questionnaire has been designed and given out to the study sample, which represented from the auditors of Directorate of senior taxpayers and directorates of medial taxpayers in the income tax department and sales who work in these directorates. The appropriate statistical methods have been used to find results. The findings showed that using the analytical procedures led to reducing the cost of a tax audit in all auditing stages. The stage, which has the most impact of using the analytical procedures on reducing the cost, is the final auditing stage followed by the planning stage and the implementation (fieldwork) stage. The study recommended the necessity of compulsion of the auditors in tax department to use the analytical procedures because it reduces the cost of tax auditing and the necessity of holding workshops and training programs to define the importance of analytical procedures in tax auditing.

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Section: Stages Of the Auditing That The Analytical Procedures Used Omentioning

confidence: 99%

The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit "The Jordanian Income and Sales Tax Department"

Mansour¹,

Kalib²

2019

IBR

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“…Lai and Muhammad (2006) looked at how prepared the tax officers were in foreseeing the fast-moving technology involving the e-government tax services. There was an interesting study conducted by Ahmad et al (2014) whereby they investigated the possibility of outsourcing the tax audit work currently performed by the IRBM's tax audit officers in Malaysia in the hope of improving tax revenues without introducing any new tax regimes.…”

Section: Role Of Tax Audit Officers and Their Level Of Competencementioning

confidence: 99%

“…As a result of the self-assessment tax system, tax audit is perceived to be the check and balance mechanism to satisfy the tax authority that the financial information declared on the tax returns is being stated correctly and accurately (Devos, 2014). Tax audit has been the subject of various studies in the past and is mainly seen as an enforcement to deter tax evasion and other forms of tax malfeasance and at the same time to encourage tax compliance amongst taxpayers, for example, those conducted by Ahmad et al (2014) and Belnap et al (2020). Arguably, increasing the frequency of tax audits can eliminate tax evasion as taxpayers would have learnt their lessons and not want to be repeatedly punished with severe fines and penalties.…”

Section: Literature Reviewmentioning

confidence: 99%

A cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst small and medium sized enterprises

Ngah

Ismail

Hamid

2021

ARJ

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Purpose The issue of tax evasion through fraudulent financial reporting committed by companies is a major concern facing the tax authority in Malaysia. As such, the purpose of this study is to propose a cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst small- and medium-sized enterprise (SME) taxpayers. Design/methodology/approach The proposed model for this study is designed to explore the extent of the relationships between the independent variables: family ownership firms, company size, presence of tax professionals, company’s duration in business and frequency of tax audits and the moderating variable, i.e. tax audit officers’ level of competence; and the dependent variable, i.e. tax evasion from the perspective of fraudulent financial reporting. This study is grounded on four theories: agency theory, political cost theory, economic deterrence theory and competency theory. Data will be gathered from actual audit cases resolved by the Inland Revenue Board of Malaysia. Ordinary least square regression analysis is proposed for the investigation. Findings This study anticipates that family ownership firms, company size, presence of tax professionals, company’s duration in business and frequency of tax audits could be associated with tax evasion amongst SMEs in Malaysia. This study further proposes that highly competent tax audit officers could mitigate the relationship between frequency of tax audits and tax evasion practices amongst SMEs in Malaysia. Originality/value This study should be able to provide a cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst SMEs in Malaysia. Research on fraudulent financial reporting amongst SMEs is very limited, especially involving the level of competence of the tax audit officers; therefore, this study should contribute to the tax evasion literature by providing a comprehensive model of predicting tax evasion through fraudulent financial reporting using a Malaysian tax setting.

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“…Tax audit is a process of reviewing or examining taxpayers' personal or business and financial records to ensure that their tax returns are declared accurately and correctly in accordance with the laws. According to Ahmad et al (2014), a tax audit is a process to assess accounting and evidence from taxpayers in the preparation of their tax returns. Whiles, Adediran et al (2013) explained that tax audits are like financial statements includes the information searching process, and determining the compliance level of taxpayers with the laws.…”

Section: Introductionmentioning

confidence: 99%

Exploratory Factor Analysis for Items Measuring of The Tax Auditors’ Performance

Ahmad,

Mustapha,

Yusri

et al. 2024

e-JPI

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Tax auditors play an essential role in tax audits to ensure governments can overcome non-tax compliance issues and protect tax revenues for the nation. Tax auditors are expected to perform their tasks efficiently and effectively in examining the taxpayer’s declaration. The tax auditors' performance determines the success of tax audit implementation. Several factors can influence the tax auditors’ performance, including auditors’ effort, professional skepticism and task complexity. Therefore, this study aims to develop a valid and reliable research instrument to measure tax auditors’ performance using the Exploratory Factor Analysis and internal reliability test (Cronbach’s Alpha). A total of 100 tax auditors from the Inland Revenue Board of Malaysia and the Royal Malaysian Customs Department were selected as respondents to participate in this study. The data was collected using the online Google Forms with 5 Likert scales and was analysed using IBM-SPSS Version 27. The results show that out of 34 developed items, only 30 remained as constructed items. The remaining items were deleted due to the low loading factor of less than 0.40. Thus, this study validated the research instrument to proceed with the Confirmatory Factor Analysis (CFA) in the following step using the validated research instrument.

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Outsourcing Malaysia Federal Tax Audit: The Stakeholders’ Views

Abstract: This study investigates the feasibility of outsourcing tax audit work in Malaysian tax

Cited by 6 publications

References 21 publications

The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit "The Jordanian Income and Sales Tax Department"

The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit "The Jordanian Income and Sales Tax Department"

A cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst small and medium sized enterprises

Exploratory Factor Analysis for Items Measuring of The Tax Auditors’ Performance

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Outsourcing Malaysia Federal Tax Audit: The Stakeholders’ Views

Abstract: This study investigates the feasibility of outsourcing tax audit work in Malaysian tax

Cited by 6 publications

References 21 publications

The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit &#34;The Jordanian Income and Sales Tax Department&#34;

The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit &#34;The Jordanian Income and Sales Tax Department&#34;

A cohesive model of predicting tax evasion from the perspective of fraudulent financial reporting amongst small and medium sized enterprises

Exploratory Factor Analysis for Items Measuring of The Tax Auditors’ Performance

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Product

Resources

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The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit "The Jordanian Income and Sales Tax Department"

The Impact of Using Analytical Procedures on Reducing the Cost of Tax Audit "The Jordanian Income and Sales Tax Department"