The 5th IMF-Japan High-Level Tax Conference for …...1996 Inland Revenue Board Malaysia 1958...
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Transcript of The 5th IMF-Japan High-Level Tax Conference for …...1996 Inland Revenue Board Malaysia 1958...
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The Organisation
2014 Self Financing
1996 Inland Revenue Board Malaysia
1958 Department of Inland Revenue
1948 Office of Income Tax
Individual Income Tax
Corporation Income Tax
Petroleum Income Tax
Stamp Duty
Real Property Gains Tax
Other Direct Taxes
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IRBM’s Tax Collection
0
50
100
150
200
250
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
92.61 96.92 106.3
120.63
141.79
161.56 162.1 162.13
183.38
207.91
220.42
44.32 48.63 56.86
65.75 74.7
90.56 88.84 86.5
109.7
124.89 128.91
MY
R B
illions
Fed Gov Revenue Direct Tax
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Direct Tax Contribution
0%
2%
4%
6%
8%
10%
12%
14%
16%
1960 1973 1986 1999 2012
dTAX/GDP RATIO
dTAX/GDP RATIO
Tax legislation (TL) (1990s)
0.051 at R2 = 0.501
Tax system (TS) (2000s)
0.107 at R2 = 0.900
Tax administration
(TA) (2010s)
0.109 at R2 = 0.963
1980-2012
Buoyancy at 1.162
Elasticity at 0.854
(Micro elements – 13% TL + 20% TS + 10% TA)
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GDP & Direct Tax Growth (2000-2013)
GDP = 0.0866t + 27.3
DT = 0.1075t + 24.125
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2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
lnGDPc lnTotal Direct tax Linear (lnGDPc) Linear (lnTotal Direct tax)
Partial informal economy collected in
(0.0209)
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COMPLIANCE PROGRAMMES
VOLUNTARY COMPLIANCE
RM (Tax Paid)
GOVERNMENT’s
FRAMEWORK
RM
(Collection)
NATION’s
DEVELOPMENT
TOGETHER
BUILD
THE
NATION
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Business Framework
Colour Coded Monitoring
KEY PERFORMANCE INDICATOR
IRBM STRATEGIC PLAN 2012-2015
Points Colour Evaluation
9 Very significantly higher than target (106%)
8 Significantly higher than target (103 -105.99%)
7 Higher than target (100.01 – 102.99%)
6 On target (100%)
5 Lower than target (97.01 – 99.99%)
4 Significantly lower than target (94.01 – 97%)
3 Very significantly lower than target (94%)
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Key Drivers of Business Transformation
REVENUE
COLLECTOR
POLITICAL/ TECHNOLOGICAL
/
ECONOMICAL/
SOCIAL/LEGAL
CHALLENGES
INCREASE
REVENUE
COLLECTION
INCREASE
VOLUNTARY
COMPLIANCE
SOUND AND
FRIENDLY TAX
POLICY
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INTERNAL
EXTERNAL
KEY CHALLENGES
MINDSET NEW WAY
OF DOING
BUSINESS
TAXPAYERS
TAX
PRACTITIONERS
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Tax Administration Transformation
2000
Current Year basis
2001
SAS for Companies
2004
SAS for other categories
2006
e-Filing
2014
Mandatory e-filing
for companies
189,330
712,283
2,356,124
2,859,459
3,257,223
2006 2007 2011 2012 2013
No .
Of
e-f
ilers
Year
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Statistics
YEAR Total submission
via e-Filing
Total Cost Saving [USD2.14 per physical form
processed] (USD)
2006 189,330 402,034.07
2007 712,283 1,512,502.17
2008 1,194,280 2,536,001.98
2009 1,613,206 3,425,573.23
2010 1,975,040 4,193,912.10
2011 2,356,124 5,003,127.51
2012 2,859,459 6,071,937.63
2013 3,257,223 6,916,572.30
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Improvements needed
• Changes in Tax Laws
• Changes in ICT
BUSINESS PROCESS
RE-ENGINEERING
SIMPLIFIED DELIVERY SYSTEM
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Process Improvements
Ez Hasil
Pre-filled tax returns
Final tax for individuals - employment
income
Public Ruling
Dispute Resolution Department
www.hasil.gov.my
1-800-88-5436(LHDN)
Hasil Service Centre
(PKH)
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Transformation Initiatives
• Stamp Duty
• Tax related services
SERVICE CENTRES – 24 CENTRES
• Centralised issuance of Return Forms
OUTPUT CENTRE
• Centralised processing of Return Forms received
PROCESSING CENTRE
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Transformation Initiatives
• In-Bound Calls
•Enquiries – Filing seasons
•Other tax matters
• Out-Bound
• Defaulters in payment
•2 Centres
•Kuala Lumpur (Main)
•Kuching (Back-up)
CALL CENTRE
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Transformation Initiatives
• Unmanned centre
• Part of Enterprise Risk Management
DATA RECOVERY CENTRE
DECENTRALISATION OF COLLECTION ACTIVITIES
• Within Klang Valley Branches
DECENTRALISATION OF SME’s
E-STAMPING
DOCUMENT MANAGEMENT SYSTEM (DMS)
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Transformation Initiatives
• To reflect business-friendly approach
CHANGES IN TAX LAWS AND PROCEDURES
INTEGRATED AND COMPREHENSIVE ENFORCEMENT STRATEGIES
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Select Reform Highlights
Tax rate reduction
Increase of personal reliefs
Replacing imputation system with single-tier approach
Compensation for late tax refund
Preferential tax rate for SME company
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In the pipeline
• Large Business and SMEs
CO-OPERATIVE COMPLIANCE
• Debt Management System
• Tax Survey Program
GREATER USE OF IT
• Tax agencies
• Other agencies
SECONDMENT
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Compliance and Enforcement
Segmentation
• Large / SME corporation
• Special industry
Legal
• Cross border transactions
• Exchange of information
Organization
• Inter agency joint audit
Selection
• Risk based analysis
IT Systems
• Data warehouse
• Audit management
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Business Transformation
is all about factoring
human in the
transformation process
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Succession Planning
Talent Development Program
Think Tank Groups
Cooperation with Higher Learning Institutions
• CEO Incubator Program
• Attachment & Cross Fertilization
• Temporary International Placement (TRIP)
• Senior Leadership Program
• Masters and PhD holders
• Post graduate Programs
The Driving Force
Creative Showcase
Innovation Day
Flexi Working Hours Dress Etiquette
CSR Programs
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Human Transformation
*To add in slide from Tan
Sri’s Leadership
Presentation
WE ARE
HASILIAN!!
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Sense of Belonging
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Succession Planning
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CEO Incubator & Toastmasters
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Be With Us…
Tax Literacy Camp with Secondary
School Children(KCC)
• Junior Tax Office at
Kidzania
• Tax education and
awareness at early stage
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Tagline & Theme Song
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Challenges Forever
• Total population / total businesses / total workforce
• Percentage of GDP Growth
MEASUREMENT OF TAX BASE
• Number of auditors vs. number of taxpayers
• Number of auditors vs. size of population
RIGHT SIZE OF TAX
AUTHORITY
• Utilisation of tax officials
• Correct strategies
• Enforcement
• Delivery system
TAXPAYER SEGMENTATION
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