Author : Jeyapalan Kasipillai
Publisher :
ISBN 13 :
Total Pages : 12 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Proliferation of Hidden Income and Tax Evasion by : Jeyapalan Kasipillai
Download or read book Proliferation of Hidden Income and Tax Evasion written by Jeyapalan Kasipillai and published by . This book was released on 2018 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study employs a qualitative approach to investigate the perceptions of professionals regarding tax evasion and avoidance in the informal sectors in Malaysia. We estimate tax evasion due to hidden income in Malaysia approximates MYR 44.97 billion (A$ 13.87 billion), around 5.4 per cent of gross domestic product in 2014. We used a survey to seek insights on hidden income from respondents who are experts in the fields of accounting and taxation, including senior government officers and tax professionals. The findings of the survey reveal that the three main sectors perceived to be engaged in 'hidden income' are, in ranking order: (i) petty trade; (ii) logging and timber; and (iii) money lending and pawn-broking. Our interviews with the respondents also reveal additional informal sectors involved in these activities, including human trafficking, bribing of enforcement agencies and illegal logging. This study assists to identify tax compliance gaps among the different sectors of the economy and provides information on sectors that require greater tax auditing. This will, in turn, furnish input to policy makers to develop strategies in encouraging voluntary compliance as well as enhancing the effectiveness of the existing tax and bureaucratic systems.