Adaptive Bands Z-Test-Statistics in Futures Markets: A New Technical Analysis Indicator

This paper presents a study of technical analysis trading rules that generate abnormal returns for futures prices.  It reports abnormal returns above that of the passive buy-and-hold policy for FKLI, FCPO, Soybean Oil Futures, Soybean Futures and Corn Futures for year 2008 tested.&nbsp

The Village Financial Management System: A Policy Towards Independent Villages

The ultimate focus of this research is to find out how to improve the capabilities of the Village Apparatus and the preparation of the Guidance Book for IT-based Village Finance Administration towards Good Village Governance. Then, this research also focuses on mentoring activities in 15 villages in Gempol sub-district. Assistance results in 15 villages in Gempol Subdistrict, Pasuruan Regency, show that village financial management software can be applied properly. Assistance results in 15 villages in Gempol Subdistrict, Pasuruan Regency, show that village financial management software can be applied properly. Although there are still some difficulties in implementation due to the lack of skills of the village apparatus due to age and parameter constraints that need to be adjusted. In general, the software still needs to be refined related to the filling and storage stages that are still considered inefficient. On the other hand, a tutorial guide book that has been tested from several aspects is considered very adequate. The usefulness of the village financial management guide book is very helpful for beginners in applying village financial management software

THE EFFECT OF E-COMMERCE ON MALAYSIAN TAX SYSTEM: AN EMPIRICAL EVIDENCE FROM ACADEMICIANS AND MALAYSIAN TAX PRACTITIONERS

Abstract: The explosion of information technology (IT) nowadays has created new phenomena in shopping activities. Consumers can easily buy products via Internet. Within a minute, the products will be delivered instantly and accurately. This scenario is known as ecommerce. The emergence of e-commerce affects consumers' shopping behavior as well as taxation system. The objective of this research is to reveal the effects of e-commerce upon Malaysian taxation system by emphasizing in scope of charge 'derive and remittance'. Research was conducted through questionnaires of 82 tax practitioners and 22 academicians. The research findings shown that derive and remittance basis is no longer appropriate in e-commerce environment. Scope of charge derives and remittances, which are practicing in Malaysia right now, are unable to maximized e-commerce tax revenue. Keyword

Tax Planning Practices Amongst Tax Agents: Evidence from Malaysia

This study explored the complexity of corporate tax planning practised by the tax agents. In Malaysia, studies on tax investigations were limited due to the high information privacy factors. This study aimed to reveal the tax planning strategies through frequent adjustments made by the companies helped by the tax agents. Tax management itself is a way to properly meet the tax obligations, but the paid amount of tax can be reduced to obtain the expected profits. Tax planning leads and attracts more public attentions. A survey among 106 tax agents in Malaysia working in big-four companies revealed that tax planning appeared to be significant suggested by the tax agents as the companies had limited knowledge on tax regulations and law. This study also found an interesting finding in which companies heavily relied on the tax agents in minimising their yearly tax incidence although the tax planning might violate the current tax laws. This study recommends that the essential elements of designing a good tax system will help restrict the conditions which enable the tax evasion for the future development. This study considered the theoretical developments and related empirical findings on the interrelated issues to measure the tax planning and possible causes and results of corporate tax evasion. This study presented some ideas for further research to examine the unexplained topics on tax planning.  In addition, the research findings also signaled to the policy makers to focus more on the integrity of tax agents to increase the compliance

Effect of ar-Rahnu relationship value on long-term relationship between customer and institutions

Ar-Rahnu is a concept of Islamic debt with pledged item. In Malaysia, Ar-Rahnu concept is applied by Islamic pawn broking industry. Thus, the practitioners called Islamic Pawn broking product as “Ar-Rahnu.” There are no studies that conceptualize relationship value of Ar-Rahnu and its dimensions as the decisive factor in Ar-Rahnu development in Malaysia. Study of long-term relationship between customer and institutions can be an indicator of Ar-Rahnu development. The long-term relationship study proves and verifies the transparency of business. However, the study about the decisive factors of long-term relationship in Ar-Rahnu industry is lacked. The aim of this paper is to prove the effect of Ar-Rahnu relationship value and its dimensions towards the long-term relationship between customer and institutions. This research is conducted among Ar-Rahnu customers within seven Ar-Rahnu institutions which are situated in Central Zone of Malaysia. Two hundred and six respondents were selected to answer a set of adapted questionnaires. The conceptual model of this paper has been validated by the confirmatory factor analysis (CFA). The analysis of Structural Equation Modeling (SEM) shows that all the dimensions of Ar-Rahnu ‘benefits’ produce a significant effect on long-term relationship but the ‘sacrifices’ give insignificant effect. The finding can improve the shariah justification on Islamic pawn broking. The value of this study lies in its effort to propose to practitioners the enhancement of marketing system regarding the most preferences and matter of concern by customers about Ar-Rahnu product

Power and trust as factors influencing tax compliance behavior in Malaysia

This study adopted the slippery slope framework in the context of tax compliance in Malaysia tax. Thus, the research objective is to examine the effect of slippery slope factors on tax compliance. The slippery slope consists of power and trust. Power is distinguished between legitimate power and coercive power. Power and trust have different influence on tax compliance. Trust is perceived to influence voluntary tax compliance and power influences enforced tax compliance. Survey method is used to collect data involving individual taxpayers as respondents. The findings suggest that only trust has significant effect on tax compliance. Meanwhile, neither legitimate power nor coercive power could influence tax compliance

Leadership and Governance of Islamic Financial Institutions in Malaysia

Some corporate failures such as Enron and WorldCom were due to mismanagement and frauds committed by the top management of the organization and even the external auditors. Leadership was cited as one of the factors that led to the collapse of Enron. The Islamic financial institutions discussed in this paper focuses on Islamic banking and Takaful sectors. In both sectors, the level of governance has not received an extensive coverage as most studies have the tendency to focus on the people’s perceptions and acceptance towards the respective sectors as well as its product offering. This paper incorporates two aspects; firstly, leadership from the theoretical perspective such as traits, behaviour, and contingency theory. Secondly, this paper also reviewed governance from the conventional practices as well as from the Islamic viewpoints. The final section of the paper presents the existing studies on leadership and governance and explains the significance of this study

The challenges of alternative dispute resolution for Islamic Finance in Malaysia

Malaysia’s authority on Islamic Finance is recognized worldwide. Islamic finance benefits and advantages have helped to develop many countries regardless of religions or communities. However, many countries such as United Kingdom, UEA, Asian countries that are adopting Islamic finance will bound to encounter some disputes through the Islamic finance application. This article provides some insights on the judgment of Malaysian court (Muamalat court) and seek to evaluate the best way for Malaysia to approach the issues. Issues such as whether financial products offered by Islamic banking institutions are Sharia compliant and whether the terms and conditions of the contracts embodied in such products are fair to all parties involved. It is suggested that while a Malaysian court have long solved many disputes through its application, it is still possible for future disputes be resolved using Alternative Dispute Resolution

Faktor-faktor mempengaruhi penyelesaian audit cukai : kajian dari perspektif Juruaudit cukai Malaysia

Cukai pendapatan merupakan sistem cukai yang dikenakan oleh Pihak Lembaga Hasil Dalam Negeri Malaysia (LHDNM) ke atas pendapatan yang bercukai. Sejak tahun 2001, kerajaan Malaysia telah memperkenalkan Sistem Taksir Sendiri (STS) bagi syarikat diikuti dengan pembayar cukai individu pada tahun 2004. Audit cukai merupakan satu instrumen penting dalam STS kerana ia menggalakkan pematuhan cukai secara sukarela di kalangan pembayar cukai. Pematuhan cukai ini sentiasa dipantau oleh Juru Audit Cukai (JAC) dari LHDNM melalui proses Audit luar dan Audit meja. Mengikut Rangka Kerja Audit Cukai (RKAC)2015, sesuatu audit cukai perlu diselesaikan dalam tempoh masa 4 bulan bermulanya audit. Akan tetapi data dari Laporan Tahunan LHDNM 2008 hingga 2013 menunjukkan terdapat kes audit cukai yang tidak dapat diselesaikan dalam tempoh masa yang ditetapkan. Tujuan utama kajian ini adalah untuk mengenalpasti faktor-faktor yang menyumbang kepada penyelesaian audit cukai dalam tempoh masa yang ditetapkan oleh RKAC 2015. Kajian ini memfokuskan kepada audit luar sahaja. Bagi mencapai objektif utama kajian ini, borang soal selidik telah dihantar kepada 209 JAC dari LHDNM Wilayah Persekutuan Kuala Lumpur dan Selangor. Hasil kajian ini menunjukkan terdapat hubungan yang signifikan antara empat faktor yang dikaji dengan penyelesaian audit cukai dalam tempoh masa yang ditetapkan oleh RKAC, iaitu pengetahuan JAC terhadap kerja audit, kerumitan transaksi perniagaan, penyimpanan rekod perniagaan dan kerjasama pembayar cukai. Hasil kajian bagaimanapun mendapati tiada hubungan yang signifikan antara saiz syarikat yang diaudit dan penyelesaian audit cukai dalam tempoh masa yang ditetapkan oleh RKAC. Dapatan kajian ini menyumbang kepada literatur audit cukai dan menyarankan beberapa cadangan kepada LHDNM untuk menstrukturkan semula RKAC yang dilihat terlalu umum dengan mengambilkira faktor-faktor yang terbukti signifikan dalam kajian ini

Governance quality of political stability and rule of law on tax compliance: a mediation analysis of tax morale

The unresolved tax compliance dilemma gives a signal of consideration/ requirement of additional factors that will influence tax compliance, such as a governance-based approach. This paper investigates the association between governance quality and tax compliance, with tax morale as a mediator. Two dimensions of governance quality were considered: political stability and the rule of law. A quantitative survey of 592 salaried and self employed taxpayers in East Malaysia was conducted. Partial Least Squares-Structural Equation Modelling (PLSSEM) was used to analyse the data. Theoretically, the present research contributed to knowledge by supporting the significant role of tax morale in the mediation association between the rule of law and tax compliance. Tax compliance can also be improved when taxpayers have high tax morale. Practically, the findings aid policymakers and governments that an ideal governance mechanism via a stable political environment is crucial to increasing tax compliance. Nevertheless, the government’s approach to enforcing an effective rule of law was viewed as a more promising strategy for boosting the morale of taxpayers