GUIDELINE FOR INDIVIDUAL ASSIGNMENT

CHECKLIS T

STEP 1 Choose one (1) of the questions below; Question 1 Malaysias income tax system is a self-assessment system of taxation. The Government has introduced Self ssessment System !S S" in sta#es$ commencin# with com%anies from year &''( and individuals from year &''). The self-assessment system of taxation is a system desi#ned to transfer the res%onsibility of determinin# taxable income and com%utin# the related tax liability from the *nland +evenue ,oard !*+," to the tax%ayer. -rior to the im%lementation of the S S$ Malaysia o%erated an official assessment system. Tax%ayers were required to com%lete and submit a +eturn .orm to the *+, which would assess the amount of tax and a notice of assessment would be sent by the *+, to the tax%ayer detailin# the amount of tax to be %aid. The shift to the S S was im%lemented with the aim of reducin# the wor/-load of the *+, and to allow the *+, to focus on hi#h tax ris/ areas durin# tax audit. Required: 0iscuss in detail how the S S im%acts tax%ayers$ tax advisors and the *+,. lso$ discuss whether any im%rovements could be made to the current S S. Question 2 1nder the Self- ssessment System$ %enalties are necessary to ensure %ro%er com%liance with the tax laws. Generally$ %enalty %rovisions can be cate#ori2ed into three broad #rou%s3 4ffences a#ainst the ct .ilin# inaccurate returns and %rovidin# incorrect information$ and .raud and willful evasion The %enalty framewor/ under the Malaysian *ncome Tax ct$ (567 !*T " includes additional taxes and %ossible im%risonment in certain instances. The *+, has si#nificant %owers to decide on the quantum of %enalty to im%ose in non%rosecution cases. Required: 0iscuss in detail how the %rovision for %enalties and offences under the *T ensures %ro%er com%liance by tax%ayers with the tax laws.

Question 3 Conver#in# trends$ includin# a shiftin# #lobal economy$ #lobali2ation and ra%idly chan#in# business models mean that countries are constantly reassessin# how com%etitive they are from a tax stand%oint. t the same time$ they also need to %rotect their tax base from erosion by what they %erceive as abusive tax %lannin#. *n recent years$ the *nland +evenue ,oard !*+," has increased its tax enforcement activities$ e.#. re#ular tax audits$ to monitor com%liance with the tax laws. Tax audits will ty%ically involve a detailed examination of the tax%ayers business records to ensure the amount of income re%orted and the tax %aid by the tax%ayer are in accordance with the law and re#ulations. The *+, may audit a tax%ayer at any %oint in time either in the form of a des/ audit and8or a field audit. Required: 0iscuss in detail the im%act of the new trend in tax enforcement measures on tax%ayers$ tax advisors and the tax authority. STEP 2 9rite an essay !not more than 2,000 words". The essay must be com%uter ty%ed$ mar#in of (: !to%$ bottom$ ri#ht and left". 1se font - times new roman$ font si2e (& and must be in double s%acin#. The references should be listed in the last %art of the essay$ excluded from the &$''' words requirement". -la#iarism is strictly %rohibited. -lease indicate the followin# details at the top left corner of the first p !e of your essay3 .ull name3 *.C. no.3 ;ame of university3 .aculty3 Ma<or3 1nder#raduate !=ear"3 >mail address3 Tele%hone no.3

The essay carries )? of the sub<ect assessment and will be #raded accordin# to the followin# criteria; Contents of the essay 0e%th of issues %resented +esearch analysis ado%ted Critical thin/in# Creativity 4verall %resentation

 The essay must be ready by 13 "une 2013 and further instructions will be announced in the MM@S.