Outsourcing malaysia federal tax audit: The stakeholders' views
| Format: | Restricted Document |
|---|
| _version_ | 1860797096556232704 |
|---|---|
| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 |
| date | 2015-01-11 08:41:58 |
| format | Restricted Document |
| id | 11358 |
| institution | UniSZA |
| internalnotes | Alm, J., Jackson, B.R. & McKnee, M. 1992. Estimating the determinants of taxpayer compliance with experimental data. National Tax Journal 45(1): 107-114. Beck, P.J., Davis J.S. & Jung, W. 1991. Experimental evidence on taxpayer reporting under uncertainty. The Accounting Review 66 (July): 535-558. Braunchli, C. 2008. Outsourcing tax compliance. Availabe at http://www.counterpunch.org. Cameron, P., Valrie, C. & Timothy, M. 2004. Identification of critical success factors for state sales tax audit privatisation. Journal of State Taxation: 17-32. Carey, P., Subramaniam, N. & Karin, C. 2006. Internal audit outsourcing in Australia. Accounting and Finance 46: 11-30. Christian, C.W., Gupta, S. & Lin, S. 1994. Determinants of tax preparer usage: Evidence from panel data. National Tax Journal 46(4): 487-503; Clotfelter, C.T. 1983. Tax evasion and tax rates: An analysis of individual returns. The Review of Economics and Statistics 65: 363-373. Collins, J.H. & Plumlee, R.D. 1991. The taxpayer’s labor and reporting decision: The effect of audit schemes. The Accounting Review 66(3): 559-576. Corbett, M.F. 2004. The Outsourcing Revolution: Why It Makes Sense and How To Do It Right. United States: Dearbon Trade Publishing. Cross, J. 1995. IT outsourcing: British petroleum’s competitive approach. Long Range Planning 28(4): 128-128. Devos, K. 2012. The impact of tax professionals upon the compliance behavior of Australian individual taxpayers. Revenue Law Journal 22(1): 1-26. Dubin, J.A. & Wilde, L.L. 1990. An empirical analysis of federal income tax auditing and compliance. National Tax Journal 43: 61-74. Hanlon, M., Hoopes, J.L. & Shroff, N. 2012. The effect of tax authority monitoring and enforcement on financial reporting quality. MIT Sloan Research Paper No. 4849-10. Availabe at http://ssrn.com/abstract=1691158 Hijattulah, A.J. & Pope, J. 2008. Exploring the relationship between tax compliance costs and compliance issues in Malaysia. Journal of Applied Law and Policy 1(1): 1-20. Hoopes, J.L., Mescall, D. & Pittman, J.A. 2012. Do IRS audits deter corporate tax avoidance? The Accounting Review 87(5): 1603-1639. Hyeon-ji, J. 2007. Korean firms face more tax audits than U.S. rivals. The Korean Herald 18 September. Inland Revenue Board Malaysia. 2007. Tax audit framework. Inland Revenue Board of Malaysia. Inland Revenue Board Malaysia. 2010. Annual report 2010. Availabe at www.hasil.org.my/pdf/pdfam/AR2010_2.pdf. IRBM. 2011. Information and communication technology: Maximising its usage in all aspect of tax administration at a minimum cost. Working paper presented at 41st Study Group of ASEAN Tax Administration and Research (SGATAR) Meeting. Juma’h, Ahmad, H. & Wood, D. 1999. Outsourcing implications for accounting practices. Managerial Auditing Journal 14(1): 387-395. Kamdar, N. 1997. Corporate tax compliance: A time series analysis. Accounting Economics Journal 25(1): 37-49. Kirchler, E. 1997. The burden of new taxes: Acceptance of Taxes as a function of affectedness and egoistic versus altruistic orientation. Journal of Socio-Economics 26(4): 421-437. Koch, C., Weber, M. & Wustemann, J. 2009. Can auditors be independent? Experimental evidence on the effects of auditors’ client type. Availabe at http://ssrn.com/SSRNid1442768.pdf. Lee, J.N. 2001. The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success. Information & Management 38(5): 323-335. Lin, S. 2000. CPA attested tax returns and tax evasion. Taiwan Accounting Review 1: 15-36. Moore, S. 2003. An uneasy marriage: Sellers and certified service providers. Journal of State Taxation 21(4): 65-75. Murphy, K. 2004. Aggressive tax planning: Differentiating those playing the game from those who don’t. Journal of Economic Psychology 25: 307-308. Pentland, B.T. & Carlile, P. 1996. Audit the taxpayers, not the return: The auditing as an expression game. Accounting, Organizations and Society 21(2/3): 269-287. Pertubuhan Berita Nasional Malaysia. 2006. Audit akan libatkan semua pembayar cukai pada masa akan datang, kata LHDN. Availabe at http://www.bernama.com Peursem, K.V. & Jiang, L. 2008. Internal audit outsourcing practice and rationales: SME evidence from New Zealand. Asian Review of Accounting 16(3): 219-245. Power, M., Bonifazi, C. & Desouza, K.C. 2004. The ten outsourcing traps to avoid. Journal of Business Strategy 25(2): 37-42. Resnick, M.T. 2005. Outsourcing Federal tax collection. Houston Business and Tax Law Journal 5: 128-159. Rice, E.M. & Slemrod, J. 1992. The corporate tax gap: Evidence on tax compliance by small corporations. In Why People Pay Tax, edited by J. Slemrod. AnnArbor: The University of Michigan Press. Sanders, N.R., Locke, A., Moore, C.B. & Autry, C.W. 2007. A multidimensional framework to understanding outsourcing arrangements. The Journal of Supply Chain Management (November): 3-15. Selim, G. & Yiannakas, A. 2000. Outsourcing the internal audit function: A survey of the UK public and private sectors. International Journal of Auditing 4: 213-26. Sen, D.K. & Bala, S.K. 2002. Tax audit: Bangladesh panorama. Managerial Accounting Journal 17(8): 464-477. Sidiki, R.A. 2010. Outsourcing income tax audit. Availabe at http://www.dawn.com/wps/wcm/connect/dawn-contentlibrary/dawn/the-newspaper/letters-to-the-editor Slemrod, J. & Venkatesh, V. 2002. The income tax compliance cost of large and mid-size business. Ross School of Business Working Paper Series. No. 914. Availabe at http://ssrn.com/ abstract=913056; Stephenson, T. 2007. Do clients share preparers’ self-assessment of the extent to which they advocate for their clients? Accounting Horizons 21(4): 411-422. Turner, J.L., Smith, M. & Gurd, B. 1998. Auditing income tax self-assessment: The hidden cost of compliance. Managerial Auditing Journal 13(2): 95-100. Williamson, M.R. & Wearing, A.J. 1996. Lay people’s cognitive models of the economy. Journal of Economic Psychology 17: 3-38. |
| originalfilename | 5588-01-FH02-FESP-15-02355.jpg |
| person | UniSZA Unisza unisza |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=11358 |
| spelling | 11358 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=11358 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Article Journal UniSZA Unisza unisza image/jpeg inches 96 96 1423 71 71 802 2015-01-11 08:41:58 1423x802 5588-01-FH02-FESP-15-02355.jpg UniSZA Private Access Outsourcing malaysia federal tax audit: The stakeholders' views Jurnal Pengurusan 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. 41 13-24 Alm, J., Jackson, B.R. & McKnee, M. 1992. Estimating the determinants of taxpayer compliance with experimental data. National Tax Journal 45(1): 107-114. Beck, P.J., Davis J.S. & Jung, W. 1991. Experimental evidence on taxpayer reporting under uncertainty. The Accounting Review 66 (July): 535-558. Braunchli, C. 2008. Outsourcing tax compliance. Availabe at http://www.counterpunch.org. Cameron, P., Valrie, C. & Timothy, M. 2004. Identification of critical success factors for state sales tax audit privatisation. Journal of State Taxation: 17-32. Carey, P., Subramaniam, N. & Karin, C. 2006. Internal audit outsourcing in Australia. Accounting and Finance 46: 11-30. Christian, C.W., Gupta, S. & Lin, S. 1994. Determinants of tax preparer usage: Evidence from panel data. National Tax Journal 46(4): 487-503; Clotfelter, C.T. 1983. Tax evasion and tax rates: An analysis of individual returns. The Review of Economics and Statistics 65: 363-373. Collins, J.H. & Plumlee, R.D. 1991. The taxpayer’s labor and reporting decision: The effect of audit schemes. The Accounting Review 66(3): 559-576. Corbett, M.F. 2004. The Outsourcing Revolution: Why It Makes Sense and How To Do It Right. United States: Dearbon Trade Publishing. Cross, J. 1995. IT outsourcing: British petroleum’s competitive approach. Long Range Planning 28(4): 128-128. Devos, K. 2012. The impact of tax professionals upon the compliance behavior of Australian individual taxpayers. Revenue Law Journal 22(1): 1-26. Dubin, J.A. & Wilde, L.L. 1990. An empirical analysis of federal income tax auditing and compliance. National Tax Journal 43: 61-74. Hanlon, M., Hoopes, J.L. & Shroff, N. 2012. The effect of tax authority monitoring and enforcement on financial reporting quality. MIT Sloan Research Paper No. 4849-10. Availabe at http://ssrn.com/abstract=1691158 Hijattulah, A.J. & Pope, J. 2008. Exploring the relationship between tax compliance costs and compliance issues in Malaysia. Journal of Applied Law and Policy 1(1): 1-20. Hoopes, J.L., Mescall, D. & Pittman, J.A. 2012. Do IRS audits deter corporate tax avoidance? The Accounting Review 87(5): 1603-1639. Hyeon-ji, J. 2007. Korean firms face more tax audits than U.S. rivals. The Korean Herald 18 September. Inland Revenue Board Malaysia. 2007. Tax audit framework. Inland Revenue Board of Malaysia. Inland Revenue Board Malaysia. 2010. Annual report 2010. Availabe at www.hasil.org.my/pdf/pdfam/AR2010_2.pdf. IRBM. 2011. Information and communication technology: Maximising its usage in all aspect of tax administration at a minimum cost. Working paper presented at 41st Study Group of ASEAN Tax Administration and Research (SGATAR) Meeting. Juma’h, Ahmad, H. & Wood, D. 1999. Outsourcing implications for accounting practices. Managerial Auditing Journal 14(1): 387-395. Kamdar, N. 1997. Corporate tax compliance: A time series analysis. Accounting Economics Journal 25(1): 37-49. Kirchler, E. 1997. The burden of new taxes: Acceptance of Taxes as a function of affectedness and egoistic versus altruistic orientation. Journal of Socio-Economics 26(4): 421-437. Koch, C., Weber, M. & Wustemann, J. 2009. Can auditors be independent? Experimental evidence on the effects of auditors’ client type. Availabe at http://ssrn.com/SSRNid1442768.pdf. Lee, J.N. 2001. The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success. Information & Management 38(5): 323-335. Lin, S. 2000. CPA attested tax returns and tax evasion. Taiwan Accounting Review 1: 15-36. Moore, S. 2003. An uneasy marriage: Sellers and certified service providers. Journal of State Taxation 21(4): 65-75. Murphy, K. 2004. Aggressive tax planning: Differentiating those playing the game from those who don’t. Journal of Economic Psychology 25: 307-308. Pentland, B.T. & Carlile, P. 1996. Audit the taxpayers, not the return: The auditing as an expression game. Accounting, Organizations and Society 21(2/3): 269-287. Pertubuhan Berita Nasional Malaysia. 2006. Audit akan libatkan semua pembayar cukai pada masa akan datang, kata LHDN. Availabe at http://www.bernama.com Peursem, K.V. & Jiang, L. 2008. Internal audit outsourcing practice and rationales: SME evidence from New Zealand. Asian Review of Accounting 16(3): 219-245. Power, M., Bonifazi, C. & Desouza, K.C. 2004. The ten outsourcing traps to avoid. Journal of Business Strategy 25(2): 37-42. Resnick, M.T. 2005. Outsourcing Federal tax collection. Houston Business and Tax Law Journal 5: 128-159. Rice, E.M. & Slemrod, J. 1992. The corporate tax gap: Evidence on tax compliance by small corporations. In Why People Pay Tax, edited by J. Slemrod. AnnArbor: The University of Michigan Press. Sanders, N.R., Locke, A., Moore, C.B. & Autry, C.W. 2007. A multidimensional framework to understanding outsourcing arrangements. The Journal of Supply Chain Management (November): 3-15. Selim, G. & Yiannakas, A. 2000. Outsourcing the internal audit function: A survey of the UK public and private sectors. International Journal of Auditing 4: 213-26. Sen, D.K. & Bala, S.K. 2002. Tax audit: Bangladesh panorama. Managerial Accounting Journal 17(8): 464-477. Sidiki, R.A. 2010. Outsourcing income tax audit. Availabe at http://www.dawn.com/wps/wcm/connect/dawn-contentlibrary/dawn/the-newspaper/letters-to-the-editor Slemrod, J. & Venkatesh, V. 2002. The income tax compliance cost of large and mid-size business. Ross School of Business Working Paper Series. No. 914. Availabe at http://ssrn.com/ abstract=913056; Stephenson, T. 2007. Do clients share preparers’ self-assessment of the extent to which they advocate for their clients? Accounting Horizons 21(4): 411-422. Turner, J.L., Smith, M. & Gurd, B. 1998. Auditing income tax self-assessment: The hidden cost of compliance. Managerial Auditing Journal 13(2): 95-100. Williamson, M.R. & Wearing, A.J. 1996. Lay people’s cognitive models of the economy. Journal of Economic Psychology 17: 3-38. |
| spellingShingle | Outsourcing malaysia federal tax audit: The stakeholders' views |
| summary | 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. |
| title | 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_short | Outsourcing malaysia federal tax audit: The stakeholders' views |
| title_sort | outsourcing malaysia federal tax audit: the stakeholders' views |