Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics

The tax system persists as the primary sources of financing Federal Government developments plans. Malaysia is a country that lagely relies on taxes. Direct taxes administered by Inland Revenue Board of Malaysia (IRBM) accounted for more than two-thirds of the Federal Government revenue in 2015 and...

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Main Author:	Siti Aminah, Ahmad Su'ut
Format:	Thesis
Language:	eng eng
Published:	2018
Subjects:	HB615-715 Entrepreneurship Risk and uncertainty Property
Online Access:	https://etd.uum.edu.my/8182/1/s819524_01.pdf https://etd.uum.edu.my/8182/2/s819524_02.pdf
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id	my-uum-etd.8182
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abd Manaf, Nor Aziah
topic	HB615-715 Entrepreneurship Risk and uncertainty Property HB615-715 Entrepreneurship Risk and uncertainty Property
spellingShingle	HB615-715 Entrepreneurship Risk and uncertainty Property HB615-715 Entrepreneurship Risk and uncertainty Property Siti Aminah, Ahmad Su'ut Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics
description	The tax system persists as the primary sources of financing Federal Government developments plans. Malaysia is a country that lagely relies on taxes. Direct taxes administered by Inland Revenue Board of Malaysia (IRBM) accounted for more than two-thirds of the Federal Government revenue in 2015 and income taxes collected from corporate sector was 38% of the federal revenue. This represents the importance of corporate tax collection in generating revenue for the nation. While the annual income tax collection of IRBM shows a positive increment each year, tax non-compliance issues are still ongoing and intensified, evidenced by an increase in the number of cases audited by tax settlement with audit adjustments and penalties. This study was performed to determine whether there was a significant difference in the motivation to conduct tax non-compliance among Malaysian Small and Medium-sized Corporations (SMCs), based on type of industry, size of company, location, and financial liquidity. The study employ quantitative research approach to analyse secondary data of field tax audit cases completed in 2015, obtained from IRBM. The research findings indicate that the type of industry, size of company, location of company and financial liqudity have influenced the probability of SMCs engaging in tax non-compliance behaviour and significant differences exist between them. SMCs engaging in services, construction and manufacturing industries has a high probability of tax non-complinace. Similar with SMCs with total assets exceeding RM10 million and SMCs located in Kelantan/Terengganu, FT Kuala Lumpur/FT Putrajaya and Selangor. SMCs with low liquidity ratio found to be less tax compliant. Therefore, research findings are expected to contribute to the body of literatures and to aid government, tax administrators, and tax practitioners especially on issues relating to SMCs tax compliance behaviour in ensuring the level of voluntary tax compliance is improved.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Siti Aminah, Ahmad Su'ut
author_facet	Siti Aminah, Ahmad Su'ut
author_sort	Siti Aminah, Ahmad Su'ut
title	Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics
title_short	Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics
title_full	Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics
title_fullStr	Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics
title_full_unstemmed	Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics
title_sort	tax audit adjustments and small and medium-sized corporations (smcs) characteristics
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2018
url	https://etd.uum.edu.my/8182/1/s819524_01.pdf https://etd.uum.edu.my/8182/2/s819524_02.pdf
_version_	1747828344864374784
spelling	my-uum-etd.81822021-11-22T01:57:57Z Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics 2018 Siti Aminah, Ahmad Su'ut Abd Manaf, Nor Aziah Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HB615-715 Entrepreneurship. Risk and uncertainty. Property HJ4771.6 Income Tax. Tax Returns. The tax system persists as the primary sources of financing Federal Government developments plans. Malaysia is a country that lagely relies on taxes. Direct taxes administered by Inland Revenue Board of Malaysia (IRBM) accounted for more than two-thirds of the Federal Government revenue in 2015 and income taxes collected from corporate sector was 38% of the federal revenue. This represents the importance of corporate tax collection in generating revenue for the nation. While the annual income tax collection of IRBM shows a positive increment each year, tax non-compliance issues are still ongoing and intensified, evidenced by an increase in the number of cases audited by tax settlement with audit adjustments and penalties. This study was performed to determine whether there was a significant difference in the motivation to conduct tax non-compliance among Malaysian Small and Medium-sized Corporations (SMCs), based on type of industry, size of company, location, and financial liquidity. The study employ quantitative research approach to analyse secondary data of field tax audit cases completed in 2015, obtained from IRBM. The research findings indicate that the type of industry, size of company, location of company and financial liqudity have influenced the probability of SMCs engaging in tax non-compliance behaviour and significant differences exist between them. SMCs engaging in services, construction and manufacturing industries has a high probability of tax non-complinace. Similar with SMCs with total assets exceeding RM10 million and SMCs located in Kelantan/Terengganu, FT Kuala Lumpur/FT Putrajaya and Selangor. SMCs with low liquidity ratio found to be less tax compliant. Therefore, research findings are expected to contribute to the body of literatures and to aid government, tax administrators, and tax practitioners especially on issues relating to SMCs tax compliance behaviour in ensuring the level of voluntary tax compliance is improved. 2018 Thesis https://etd.uum.edu.my/8182/ https://etd.uum.edu.my/8182/1/s819524_01.pdf text eng 2021-08-27 public https://etd.uum.edu.my/8182/2/s819524_02.pdf text eng public other masters Universiti Utara Malaysia Abdul-Jabbar, H., & Pope, J. (2009). Tax attitudes and compliance among small and medium enterprises in Malaysia. New Zealand Journal of Taxation Law and Policy, 15(3), 198-222. 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Tax audit adjustments and small and medium-sized corporations (SMCs) characteristics

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