Post Implementation of Goods and Services Tax (GST) in Malaysia: Tax Agents’ Perceptions on Clients’ Compliance Behaviour and Tax Agents’ Roles in Promoting Compliance

Muhammad, Izlawanie

doi:10.1051/shsconf/20173411002

Cited by 4 publications

(6 citation statements)

References 7 publications

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“…Senthuran Elalingam, the indirect tax leader at Deloitte Malaysia mentioned that many businesses find that the administration cost associated with complying with the GST to be high as well as the cash-flow costs due to delayed payments of refunds (Smith, 2018). Muhammad (2017) found that majority of the tax agents in Malaysia strongly agree that many of their clients feel burdened with GST requirements. She also found that the tax agents" clients rely on their tax agent assistance to comply with the GST obligations.…”

Section: Tax Practitionersmentioning

confidence: 99%

Goods and Services Tax and Sales and Services Tax in Malaysia: A Review of Literature

Sidik¹,

Muhaidin²,

Supar³

2019

IJFR

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Introduction: Tax is the main source of revenue for the Malaysian government. Thus, to increase the government revenue, Goods Services Tax (GST) was implemented in Malaysia starting from April 2015 to replace the Sales and Services Tax (SST). However, starting from September 2018, the GST has been replaced back by the SST.Methodology: The study will review the prior literature on the tax reforms. It will analyse data from scholarly journals, newspapers, review articles and other related documents. The focus will be on the implementation of GST and new SST in Malaysia from different stakeholders’ perspective.Results: The results indicate that SST is much better to match with the Malaysian environment. This is because SST is tax friendly for both the business entities and the people of Malaysia.Conclusion and Recommendations: The findings would contribute to the literature and explains whether the move made by the Malaysian government to revert to SST is justifiable.

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Section: Tax Practitionersmentioning

confidence: 99%

Goods and Services Tax and Sales and Services Tax in Malaysia: A Review of Literature

Sidik¹,

Muhaidin²,

Supar³

2019

IJFR

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“…For example, in ensuring the taxpayers’ return and filing are correct, tax authorities incur additional costs and resources for checking purposes. Similarly, tax agents are hired to ensure the tax return submitted are correct (Muhammad, 2017; Isa et al , 2014) as taxpayers may face penalty if non-compliance is detected (Saad et al , 2014). Thirdly, tax complexities may also cause unfairness as not all taxpayers are equally able to take advantage of the various complexities of the tax system (James et al , 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

“…A study on tax agents in Malaysia shows that their clients felt burdened by the requirements needed by the GST act as there is a difficulty to understand how to comply with the GST requirements and to avoid any penalties from non-compliance (Muhammad, 2017). Due to the difficulties, many of the taxpayers delegated their GST matters to their tax agents and the agents needed to ensure the filing was done correctly by asking for additional information from their clients as the clients were not sure which information was needed for the filing (Muhammad, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

“…For declarative dimension, among the causes are record keeping that is detailed and onerous, confusing tax forms, confusing tax form instructions and computations that are too numerous and too difficult Borrego et al (2015). For example, due to the complex instruction in the GST submission form (GST03), tax code that needed to be selected was filled out by tax agents instead of the taxpayers (Muhammad, 2017) (Table 1).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Some of the tax agents also claimed that their clients did not check their records before submitting them to their agents, increasing the complexity of the GST submission. Some of the clients also occasionally compromised the accuracy of the GST03 just to ensure that they submitted the form before the deadline while others intentionally committed errors in their records to under report their GST payable by looking at grey areas in the GST law (Muhammad, 2017). This shows that the GST record keeping was not correctly done by the taxpayers, and there was some manipulation of the records to reduce their GST payable which affected the accuracy of the GST returns filed by either the taxpayers or their tax agents.…”

Section: Literature Reviewmentioning

confidence: 99%

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GST complexities in Malaysia: views from tax experts

Nutman

Isa

Yussof

2021

IJLMA

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Purpose The Goods and Services Tax (GST) implementation in Malaysia had raised various responses from many parties involved when the new tax was introduced in 2015 until its abolishment in 2018. GST complexity has been stated as part of the reasons for its resistance and abolishment. The purpose of this paper is to identify causes of GST complexities during its implementation in Malaysia. Design/methodology/approach This paper draws on causes of tax complexity from previous studies and conducted semi-structured interviews with tax experts. The respondents comprised of subject matter experts in GST and the findings are based on their numerous years of experiences handling clients with diverse backgrounds. Findings Findings from this study are categorised into legal complexity and declarative complexities. Almost all the causes of complexities from prior studies were encountered by Malaysian businesses. This study concluded that the most likely reasons for the abolishment of GST in Malaysia are: numerous rules and exception to the rules (e.g. 35 tax codes, gifts rules, 21-day rules), frequent changes of GST rulings and guidelines, GST computations that were too difficult for mixed supply and process of GST refund that were onerous and lengthy. Research limitations/implications Limitations of this paper include reliance on the respondents’ ability to accurately and honestly recall details of their experiences, circumstances, thoughts or behaviours that are being asked. Practical implications Despite the abolishment of the GST in Malaysia, it is pertinent to identify the causes of GST complexities that can be learnt by the relevant authorities. Measures can be formulated to mitigate the identified GST complexities to ensure high compliance among businesses with other existing taxes or new taxes (if any) to be introduced in the future. This includes addressing the competency of RMCD officers and businesses on the rules and regulations, minimal rules and exception to the rules, a simplified GST computations for mixed supply and a systematic refund process. Originality/value The research method used is a flexible and powerful tool to capture the voices and the ways respondents make meaning of their experience dealing with the GST matters. The findings reveal a deep understanding of the issues from the views of the experts in the field.

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Perspectives and Role of GST Practitioners in Promoting GST Compliance in India

Basavanagouda

Panduranga

2022

Vision

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GST is a technology-driven tax system. In Indian context, after five years of implementation, it is going through the evaluation phase. Many circulars and notifications are being issued to correct anomalies and to stabilize tax system. Given the complexities in understanding GST law and to cope up with technological aspects, it is difficult for a non-tech savvy taxpayer to comply with GST. Many taxpayers’ resort to services provided by GST practitioners and get their advice while complying with GST provisions. As GSTPs are more aware of GST issues, it becomes imperative to study their perspectives on various aspects of GST and their role in GST compliance. An attempt is being made in this study to analyse the perspectives and role of GSTPs under GST. Factor analysis has been used to identify various factors influencing compliances made by clients; reliability tests have been carried out to test the significance of factors. Most of the factors provided acceptable results. It is found that most of the clients are abrogating all their responsibilities to GSTPs, and they are seeking a variety of services. The paper provides deeper understanding of the issues under GST from the views of practitioners in the field.

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Post Implementation of Goods and Services Tax (GST) in Malaysia: Tax Agents’ Perceptions on Clients’ Compliance Behaviour and Tax Agents’ Roles in Promoting Compliance

Cited by 4 publications

References 7 publications

Goods and Services Tax and Sales and Services Tax in Malaysia: A Review of Literature

Goods and Services Tax and Sales and Services Tax in Malaysia: A Review of Literature

GST complexities in Malaysia: views from tax experts

Perspectives and Role of GST Practitioners in Promoting GST Compliance in India

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