Noor Sharoja Sapiei

Sources of corporate income tax compliance costs: The case of Malaysian self-assessment system

This study identifies the sources of income tax work for corporate taxpayers under the Self-Assessment System (SAS) environment. Utilizing the researcher administered survey, the sources of tax compliance costs is investigated. The internal-external costs ratio was 37:63, indicating that there is a heavy reliance on external sources. This study therefore concluded that tax compliance activities were mainly handled by external tax professionals. Comparative findings with existing studies provide further contributions to corporate tax knowledge, tax administration and practices.

Components of tax compliance costs for the Malaysian corporate taxpayers

This study identifies the components of tax compliance costs for corporate taxpayers under the Self-Assessment System (SAS) regime. The tax compliance costs ratio analysis in terms of their computational-planning components is provided. The computational and planning ratio was 74:26, indicating that major components of compliance costs relate to tax computation work. This study therefore concluded that most of the tax compliance costs burden for Malaysian Public Listed Companies (PLCs) was related to routine income tax returns activity. Comparative findings with existing studies provide further contributions to corporate tax knowledge, tax administration and practices.