P136 Cooperative Tax Compliance in Malaysian Environment: Insights from Tax Experts

Abstract

Tax Corporate Governance Framework (TCGF) is part of the Inland Revenue Board Malaysia’s initiative towards adopting a cooperative tax compliance process that is both fair and effective in Malaysia. An effective tax governance framework can cultivate a level of confidence that the organization is reporting and paying the right amount of tax, enabling organizations to achieve greater certainty in relation to its tax affairs. Presently, participation is encouraged for organizations that have medium to complex structures and business models, with voluminous transactions. Notwithstanding the benefits of TCGF such as no/lesser tax audits, expedite tax refunds and priority considerations, not many participates in this voluntary exercise. Hence, this study intends to gauge the insights from tax experts including tax professionals and tax officials on potential issues and challenges contributing to such low acceptance. Data obtained though in-depth interview data was analyzed using thematic analysis. Results reveal that among pertinent issues are mutual trust, certainty, transparency, readiness of taxpayers, misconception of CTC and adequacy of well-trained personnel. This information would assist the tax authority to address the issues and consequently formulate the strategies in its effort to improve compliance and eventually tax collection of the country.