Tax fraud indicators / Rohaya Md Noor … [et al.]

This paper examines data of companies subjected to tax investigation during the tax years of 2001 to 2005 to detect the financial ratio associated with tax evasion. Using the financial ratio analysis, the objective of this study is to investigate the possible indicators of fraudulent financial reporting for tax evasion. Six financial ratios applied to a final sample of 73 companies. Univariate and multivariate statistical techniques are used to identify the indicators of fraud financial reporting. Based on the ordinary least square model, this study provides empirical evidence that the ratio of sales, working capital and debts over total assets, are significantly associated with the companies’ tax evasion. Hence, the findings imply that these ratios can be used by tax offices in their investigation as a predictor of fraud financial reporting for tax evasion purposes. The results therefore demonstrate that the findings could be of assistance to tax authorities in their effort to identify the possibility of tax evasion

The performance measurement model of mosques in Malaysia based on the maqasid shariah index approach / Muhd Fauzi Abd. Rahman, Nor’azam Mastuki and Sharifah Norzehan Syed Yusof.

There are relatively few studies that have been done with regards to the performance measurement of mosques. Despite the perceived uniqueness of mosques as non-profit organisations, this paper shows that the adoption of performance measurement model from the private sectors can also be applied in the case of faith-based non-profits organisations. The survey covered the whole of Malaysia. Given the size of the population and the large geographical area to be covered, a self-administered questionnaire was used as the main method of data collection. Structure Equation Model (SEM) was performed to analyse the data. The results show that there are significant relationships between the four main variables which are resources, processes, outputs and Maqasid Shariah Index which form the basis of performance measurement modelling. The findings from this study indicate that mosques in general, are not effective in meeting their Shariah objectives especially the one related to the objective of “preserving religion”

Management control system in asnaf entrepreneurship development program by Lembaga Zakat Selangor

Lembaga Zakat Selangor (LZS) has been corporatized and governed as a corporate entity. For good corporate governance, LZS implements a management control system (MCS) in one of its zakat distribution program known as Asnaf Entrepreneurship Development Program (AEDP). The objective of study is to explain the elements/dimensions of MCS in AEDP by referring to Levers of Control (LOC) as a framework. The LOC with four control mechanisms namely belief, boundary, interactive and diagnostic is commonly known, preferable and applied framework for MCS research and adopted by many worldwide corporations. A total of eight interviews were carried out; three with LZS officers and five with zakat beneficiaries. Data were audio recorded, transcribed verbatim and analysed in qualitative approach. It was found that the controls available in LZS can be matched against four control mechanisms in LOC. Despite that all the four control mechanisms are placed in MCS, they have yet to be documented in LZS Standard Operating Procedure (SOP). Formal documentation may impetus confidence amongst zakat payers and Muslims as a whole that the funds are efficiently managed and properly governed for the best interest of beneficiaries apart from being source of references to other zakat institutions