By MOHD AMIRUL RADZUAN
THE IMPACT OF THE TAX PENALTY IN MALAYSIA
Providing proper taxes to the government becomes the most important responsibility of individuals towards the government. The companies of Malaysia maintain professional accounting services to avoid tax-related penalties. Individuals can face various legal issues to miss the deadlines for tax payments. According to Tan et al. (2021), tax revenue becomes the main source of income for the government and proper cooperation of various public services helps in this process.
On the other hand, Hassan et al. (2022) stated that the government created revenue policies based on individual income as well as the requirements of the public. The study of a statistical package of social science helps to demonstrate the actual policies of the government regarding taxation policies. Avoid filling of tax created major risks for individuals and individuals have to pay between RM200 to RM20, 000 for thesis offences. The government created various acts as well as scurrying to demonstrate the level of penalties according to the severity of offences. An approximately 10% increment can obstruct the individual from the issue of a deadline missed income tax payment (Landco, 2023). Individuals can face various legal issues to not maintaining the deadlines related to income tax.
Misreporting the actual income of an individual becomes a serious offence from the perspective of the government. The issue can avoid by the common people to show proper reliability on audit firms of the country. According to Bakar et al. (2021), approximately 200% tax charge by the government for unlawful activities created by any business organisation.
On the other hand, Sing & Bidin, (2020), stated that rental income, employment income, royalties, as well as dividends are the major parts of income tax. Most business organisations hired a professional accountant to avoid the penalty-related factor. The expert can exaggerate tax relief to cut down actual tax bull. Section 107B stated that approximately 10% penalties have to pay individuals for the issue of estimated income tax. The income tax expert gathers good knowledge related to the investment process as well as the profit rate of the business. The process of tax reduction helps to remove future risk factors from the business. The audit firm can maintain major responsibility in this segment
The tax penalties can happen for multiple reasons and the income tax act deals with various fences. The sections of the income tax act help to remove frequencies of offences. Tax compliance becomes a major part of concern for each developing country. Various enforcement activities as well as laws help to comply with the requirements of taxpayers. Tax penalties directly measure with the help of various dependent variables. Penalties, knowledge, punishment, as well as proper education become parts of tax compliance.
All taxpayers have to maintain the Act of income tax 1967 to maintain the economic infrastructure of the country. The government want to maintain the proper relationship between tax compliance as well as tax knowledge (Shinewingtyteoh, 2023). There are Tax education help to understand tax compliance behaviours. The government used various behavioural theories to understand the behaviour of tax compliance. Various behavioural theory helps to understand the actual requirement of people and the government create policies based on those requirements.