Quest for Tax Education in Non-Accounting Curriculum: A Malaysian Study

Abstract

This study aims (i) to ascertain the demand for tax education among Malaysian undergraduates from non-accounting disciplines; (ii) to examine the level of tax knowledge among non-accounting undergraduates; (iii) to identify the instructional methods to be used; and (iv) to determine the relevant tax topics to be covered in tax course for the non-accounting curriculum. A questionnaire was given to undergraduates from non-accounting disciplines in three public universities in Malaysia from the month of February to April 2011. Out of the 1,575 questionnaires distributed, 995 usable responses were received and analyzed. This survey found (i) majority of the respondents were in favor of tax education being introduced into non-accounting curriculum as an elective paper; (ii) about 44.9% had little tax knowledge; (iii) the most preferred methods of teaching taxation are case studies and face-to-face classroom learning; and (iv) the topics that the respondents would like to learn the most are personal taxation, tax planning for individual and basic concepts of taxation. The findings provided important insight in order to reform the current education policy, to introduce tax education formally in non-accounting curriculum, as tax education is the pillar that builds a tax literate society. This study could be seen as the first large-scale study conducted after the implementation of self-assessment tax system in Malaysia. Study on tax education from developing country like Malaysia is rare; hence, this study would fill a knowledge gap.

Introducing Formal Tax Education in Secondary School: A Survey on Malaysian Public’s Perception

“…As this study found that only 23.7% of respondents has high level of tax knowledge, the result suggests more emphasis on the importance of tax education especially in keeping to the newly implemented self-assessment system in Malaysia. The first large scale study on tax education in Malaysia was performed by several researchers as it involves three main public universities in Malaysia [22]. Questionnaire were distributed to 1,575 students in nonaccounting discipline and the results, supports previous studies, where a majority of the respondents are willing to take tax course as an elective paper.…”

“…The responses show that the main source of additional tax education, was gained from respondents' own reading (35 responses), 34 of them claimed that they received taxation education during their studies at tertiary level and 12 of them improved their knowledge through the IRBM collaboration programs with their workplace. Even though tertiary level education managed to provide additional tax knowledge as suggest by previous studies [4], [21], [22] it is only offered in programs with majors in Accounting and Business/Finance Programs [6] Therefore this finding provides further support for non-accounting programs at the tertiary level to offer taxation as their core subject. Collaboration programs between participants' workplace and the IRBM have also been reported as an important source of tax education after school.…”

“…Compared between these two studies, the percentage of respondent with high level of tax education in this study is lower at only 10.46%. Therefore, this study provides another concrete reason for introduction of formal tax education for non-accounting curriculum in tertiary education [21], [22].…”

“…Taxation education can be broadly defined as 'a general introduction to concepts and principles of taxation. It covers personal, business and corporation taxation, tax administration, tax assessment, appeal and basic tax planning for individuals and businesses' [22]. Overall, between 1% to 23% of the respondents claimed that they have been exposed to the topics.…”

“…Do you think that it will be better if the student is given early information on the benefit of tax to the society? 22. At what level do you think tax education is suitable to be introduced?…”