Tax non-compliance of small-and medium-sized corporations (SMCs) and tax auditors' aggressiveness in judgment when auditing SMCs / Nor Azrina Mohd Yusof @ Ghani

The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The loss of tax revenue due to tax non-compliance has prompted tax authorities to strengthen their tax audit and tax investigation. In Malaysia, although tax authorities have initiated tax audit regularly and impose tax penalties, the issue of tax non-compliance among small-and medium-sized corporations (SMCs) still persist. The unresolved issue signals the question as to whether the increase in tax noncompliance is due to the tax auditors' aggressiveness in judgment when auditing SMCs. The importance of understanding tax non-compliance as well as tax auditors' aggressiveness in judgment, couple with the lack of empirical research is the motivation of this study. The first objective is to examine the determinants of tax non-compliance of SMCs. This study analysed archival tax data obtained from the Corporate Tax Department, IRBM, located at Duta Street, Kuala Lumpur. A total of 513 audited and resolved corporate tax cases in 2011 were obtained. Of these 513 tax cases, 286 are noncompliant SMCs. The findings show RM31.3 million additional taxes and penalties were collected from these non-compliant SMCs. The hierarchical multiple regression was used to test the proposed research model, which is formulated based on the economic deterrence theory. Out of six hypotheses, four hypotheses are supported whereby tax rate, foreign ownership, firm size and construction industry are found significantly related to tax non-compliance of SMCs. The most significant predictor is firm size followed by construction industry, tax rate and foreign ownership. The second objective is to test the tax auditors' aggressiveness in judgment model based on culpability theory. A total of 357 questionnaires were mailed to tax auditors. Of these, 318 usable questionnaires were received and analysed. There are two important findings from this survey. Firstly, tax auditors indicate that the use of unqualified tax agents, types of industry and firm size cause tax non-compliance among SMCs. These findings are consistent with the findings obtained in Stage 1 where firm size and types of industry are two significant determinants of tax non-compliance. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the proposed tax auditors' aggressiveness in judgment model. The results show that the culpability factor, job stress and partially task input factors (incompleteness of documentation) exerted significant effects on tax auditors' aggressiveness in judgment. The results also reveal that incompleteness of documentation significantly moderates the relationship between the culpability factor and tax auditors' aggressiveness in judgment, thus answering the third objective. When the degree of incompleteness of documentation is high, the culpability factor (e.g., size of audit adjustment and the number of years involved in tax non-compliance) will have greater influence on the aggressiveness of tax auditors' judgment when auditing SMCs. Overall, this study has merits as it used the actual tax audit cases in measuring tax non-compliance among SMCs in Malaysia. This study contributes to the tax compliance literature by testing the applicability of the economic deterrence theory and the culpability theory in the context of Malaysian tax setting. The findings provide important insights not only to the Malaysian tax authorities, but also to tax authorities and tax researchers in other parts of the world given the fact that tax non-compliance of SMCs is a prevalent and universal problem

Incorporating Tax Education into Non-Accounting Curriculum: A Malaysian and Indonesian Study

This study examines whether Malaysian and Indonesian colleges and universities need to formally include tax education in all fields of study at all tertiary level. Three hundred forty-nine academicians from Malaysia and 127 from Indonesia answered the survey. The finding shows that both countries’ academicians hold comparable views on the need to include tax education as an elective course in all fields of study. Furthermore, the results show that both respondents have a good grasp of three basic tax facts. Finally, the findings inform policymakers about the necessity of formally incorporating tax education at all tertiary studies. Keywords: Tax education; Tax compliance; Non-accounting curriculum eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under the responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians), and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v7i21.369

Factors Affecting the Tax Compliance among Small and Medium Enterprises' Business Owners in Malaysia

This study explores the factors influencing the tax compliance among Small and Medium Enterprises (SMEs) business owners in Malaysia. This study investigates the effect of tax morale, tax complexity, and tax knowledge on tax compliance. This study employed an online survey to collect the data, and 110 SME business owners responded. The regression analysis was used to analyze the data. The findings of this study indicate that tax morale and tax knowledge have a significant impact on tax compliance. The findings of this study could assist IRBM in improving tax compliance among Malaysians, particularly those who manage SMEs. Keywords: Tax compliance; Small Medium Enterprises. eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v7i20.354

Style of information usage and use of accounting information : a Malaysian study

Purpose &ndash; Since the 1990s, there has been a growing interest in style of information usage. However, most studies on style of information usage are conducted in developed countries. There is limited research on style of information usage in developing countries. The purpose of this paper is to fill the gap in the existing literature by examining relationships between style of information usage and use of financial and non-financial information in Malaysia. Design/methodology/approach &ndash; The authors adopted a survey method, for which a written questionnaire was prepared and mailed out to companies in Kuala Lumpur, Selangor, Terengganu and Pulau Pinang. Findings &ndash; Findings of the study show that diagnostic style of information usage is positively associated with use of financial information, while interactive style of information usage is positively associated with use of non-financial information. Further analysis on types of non-financial information used by managers who adopt interactive style of information usage reveals that customer-related non-financial information such as quality, customer satisfaction and flexibility play a more important role in their decision-making processes. Originality/value &ndash; The paper provides insights into relationships between style of information usage on and use of accounting information in developing countries. Findings of the study can be applied to assist management accountants in meeting managers&rsquo; information requirements.<br /

Mortality from gastrointestinal congenital anomalies at 264 hospitals in 74 low-income, middle-income, and high-income countries: a multicentre, international, prospective cohort study

Summary Background Congenital anomalies are the fifth leading cause of mortality in children younger than 5 years globally. Many gastrointestinal congenital anomalies are fatal without timely access to neonatal surgical care, but few studies have been done on these conditions in low-income and middle-income countries (LMICs). We compared outcomes of the seven most common gastrointestinal congenital anomalies in low-income, middle-income, and high-income countries globally, and identified factors associated with mortality. Methods We did a multicentre, international prospective cohort study of patients younger than 16 years, presenting to hospital for the first time with oesophageal atresia, congenital diaphragmatic hernia, intestinal atresia, gastroschisis, exomphalos, anorectal malformation, and Hirschsprung’s disease. Recruitment was of consecutive patients for a minimum of 1 month between October, 2018, and April, 2019. We collected data on patient demographics, clinical status, interventions, and outcomes using the REDCap platform. Patients were followed up for 30 days after primary intervention, or 30 days after admission if they did not receive an intervention. The primary outcome was all-cause, in-hospital mortality for all conditions combined and each condition individually, stratified by country income status. We did a complete case analysis. Findings We included 3849 patients with 3975 study conditions (560 with oesophageal atresia, 448 with congenital diaphragmatic hernia, 681 with intestinal atresia, 453 with gastroschisis, 325 with exomphalos, 991 with anorectal malformation, and 517 with Hirschsprung’s disease) from 264 hospitals (89 in high-income countries, 166 in middleincome countries, and nine in low-income countries) in 74 countries. Of the 3849 patients, 2231 (58·0%) were male. Median gestational age at birth was 38 weeks (IQR 36–39) and median bodyweight at presentation was 2·8 kg (2·3–3·3). Mortality among all patients was 37 (39·8%) of 93 in low-income countries, 583 (20·4%) of 2860 in middle-income countries, and 50 (5·6%) of 896 in high-income countries (p<0·0001 between all country income groups). Gastroschisis had the greatest difference in mortality between country income strata (nine [90·0%] of ten in lowincome countries, 97 [31·9%] of 304 in middle-income countries, and two [1·4%] of 139 in high-income countries; p≤0·0001 between all country income groups). Factors significantly associated with higher mortality for all patients combined included country income status (low-income vs high-income countries, risk ratio 2·78 [95% CI 1·88–4·11], p<0·0001; middle-income vs high-income countries, 2·11 [1·59–2·79], p<0·0001), sepsis at presentation (1·20 [1·04–1·40], p=0·016), higher American Society of Anesthesiologists (ASA) score at primary intervention (ASA 4–5 vs ASA 1–2, 1·82 [1·40–2·35], p<0·0001; ASA 3 vs ASA 1–2, 1·58, [1·30–1·92], p<0·0001]), surgical safety checklist not used (1·39 [1·02–1·90], p=0·035), and ventilation or parenteral nutrition unavailable when needed (ventilation 1·96, [1·41–2·71], p=0·0001; parenteral nutrition 1·35, [1·05–1·74], p=0·018). Administration of parenteral nutrition (0·61, [0·47–0·79], p=0·0002) and use of a peripherally inserted central catheter (0·65 [0·50–0·86], p=0·0024) or percutaneous central line (0·69 [0·48–1·00], p=0·049) were associated with lower mortality. Interpretation Unacceptable differences in mortality exist for gastrointestinal congenital anomalies between lowincome, middle-income, and high-income countries. Improving access to quality neonatal surgical care in LMICs will be vital to achieve Sustainable Development Goal 3.2 of ending preventable deaths in neonates and children younger than 5 years by 2030

Penggunaan Pleco dalam pembelajaran bahasa Mandarin / Lee Chai Chuen and Nor Azrina Mohd Yusof

Keupayaan berkomunikasi dalam Bahasa Mandarin dengan efisyen secara lisan dan bertulis oleh seorang graduan universiti adalah sangat penting dalam mendepani cabaran Industri 4.0 and Internet of Things (IoT). Namun demikian, mempelajari Bahasa Mandarin bukan suatu perkara yang mudah kepada para graduan Melayu yang tidak mempunyai asas Bahasa Mandarin. Ini kerana sebagai penutur bukan jati Bahasa Mandarin, mereka bukan sahaja perlu belajar bertutur dalam Bahasa Mandarin, malahan membaca dan menulis dengan menggunakan satu set karakter Cina yang berbeza dengan Bahasa Melayu. Hakikatnya, mempelajari Bahasa Mandarin merupakan satu cabaran besar terhadap pelajar yang langsung tidak mengenali atau memahami bahasa tersebut. Kajian awal ini bertujuan untuk memperkenalkan Kamus Cina Pleco dalam pengajaran Bahasa Mandarin di kalangan pelajar-pelajar Melayu UiTM. Kamus Cina Pleco ini merupakan produk Pleco Software Incorporated. Pleco mempunyai empat ciri istimewa seperti kamus luar talian, enjin pencarian asas yang mudah, pengecaman tulisan tangan dan pengecaman karakter optik, justeru itu penggunaan Pleco ini dijangka mampu dapat membantu memudahkan pembelajaran Bahasa Mandarin

Introducing Tax Education in Non-Accounting Curriculum: Evidence from Academicians

Taxation is the key source of revenue for most developing countries in the world. Despite their reliance on taxes, most governments confront comparable revenue collection issues. For instance, Malaysia had the fourth lowest tax ratio among Asian and Pacific nations. This is quite surprising because a self-assessment system (SAS) has been in place for over two decades, yet voluntary compliance is still missing. Despite this, past research has revealed that Malaysian taxpayers appear to be tax illiterate. Thus, the purpose of the study was (i) to analyze the need for introducing tax subjects in non-accounting curriculums among academicians from non-accounting fields, (ii) to measure tax knowledge among non-accounting academicians, and (iii) to determine the preferences of non-accounting academicians on taxation topics if tax subjects are integrated into non-accounting curriculums. In September 2021, an online questionnaire was sent to all non-accounting academicians within the Universiti Teknologi MARA (UiTM) system over a three-week period. There were 358 responses in all, with 349 questionnaires usable for data analysis. According to the findings, (i) most respondents probably agreed that tax subjects should be taught in all faculties, (ii) 50.4% of respondents demonstrated tax literacy, and (iii) real property and gains tax, tax planning for small businesses, and small company tax were the three most preferred tax topics. Despite the fact that Malaysia’s self-assessment system has been in place for over two decades, 41.8% of respondents had just a moderate understanding of taxes. The findings offer insight into how the Malaysian Ministry of Higher Education and the Malaysian Inland Revenue Board may work together to deliver tax education to non-accounting students at the tertiary level. As a result, because the sample was confined to all UiTM academicians from non-accounting fields, the findings should be interpreted and generalized with caution

Heat Transfer Performance of Quaternary Molten Nitrate Salt Mixture for Heat Transfer Application

Previous, study has shown that synthetic oil and water are the best medium that can act as heat transfer fluid in heat transfer application. However, in the context of transferring energy, these medium are insufficient for operating at high temperature range due to its characteristic such as low melting point. The use of high temperature molten salt mixture in various industries has resulting big changes in transferring of heat energy. It is proven that the molten salt mixture can carry more heat from one place to another. This study shows the effect of quaternary molten salts mixture consisting of four different salts which are Sodium Nitrate, (NaNO3), Potassium Nitrate, (KNO3), Lithium Nitrate, (LiNO3), and Calcium Nitrate, (Ca(NO3)2) that can enhance the heat transfer rate in heat transfer application. New line of quaternary nitrate salt mixtures (NaNO3 - KNO3- LiNO3 – Ca(NO3)2) were prepared through mixing process. Those mixtures were then heated inside the box furnace at 150oC for four hours and rose up the temperature to 400oC for eight hours to homogenize the mixtures. The temperature was then dropped for several hours until it reaches 115oC before removing the mixture from the furnace. After that, the quaternary molten salt has been placed inside the boiler for heat transfer performance test. The quaternary molten salt was heated inside the boiler and transferred the heat to the working fluid through the copper coil. The inlet and outlet temperatures were recorded by reading the measuring devices that installed at the inlet and outlet of the boiler. At the boiler temperature of 200oC, it is shown at time of 25 minutes, sample 5 with composition of 10wt% NaNO3, 60wt% KNO3, 10wt% LiNO3 and 20wt% Ca(NO3)2 gives the highest value of heat transfer rate which was 2.65kW, meanwhile at boiler temperature of 100oC, sample 2 with composition of 22wt%NaNO3, 40wt%KNO3, 23wt%LiNO3 and 15wt%Ca(NO3)2 gives the lowest value of heat transfer which was 0.37kW. In the nut shell, by replacing the previous heat transfer fluid to quaternary molten salt mixture can increase the heat transfer rate in heat transfer application