Record Detail Back
International Journal of Law and Management: GST complexities in Malaysia: views from tax experts
- Share to:
Abstract
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.
NONE
Text
ENGLISH
EMERALD INSIGHT
2022
ENGLAND
JURNAL ILMU HUKUM
LOADING LIST...
LOADING LIST...
APA Citation
Naailah Nutman and Khadijah Isa. (2022).International Journal of Law and Management:
GST complexities in Malaysia:
views from tax experts.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd