Abstract
This study aims (i) to ascertain the demand for tax education among Malaysian undergraduates from non-accounting disciplines; (ii) to examine the level of tax knowledge among non-accounting undergraduates; (iii) to identify the instructional methods to be used; and (iv) to determine the relevant tax topics to be covered in tax course for the non-accounting curriculum. A questionnaire was given to undergraduates from non-accounting disciplines in three public universities in Malaysia from the month of February to April 2011. Out of the 1,575 questionnaires distributed, 995 usable responses were received and analyzed. This survey found (i) majority of the respondents were in favor of tax education being introduced into non-accounting curriculum as an elective paper; (ii) about 44.9% had little tax knowledge; (iii) the most preferred methods of teaching taxation are case studies and face-to-face classroom learning; and (iv) the topics that the respondents would like to learn the most are personal taxation, tax planning for individual and basic concepts of taxation. The findings provided important insight in order to reform the current education policy, to introduce tax education formally in non-accounting curriculum, as tax education is the pillar that builds a tax literate society. This study could be seen as the first large-scale study conducted after the implementation of self-assessment tax system in Malaysia. Study on tax education from developing country like Malaysia is rare; hence, this study would fill a knowledge gap.
Highlights
Since the year of assessment 2004, the Inland Revenue Board Malaysia had launched a self-assessment system for individual taxpayers
Research Objectives This study aims i) to find out the demand for tax education among the Malaysian undergraduates from non-accounting disciplines; ii) to examine the level of tax knowledge among non-accounting undergraduates; iii) to identify the suitable instructional methods; and iv) to determine the relevant tax topics to be covered in tax course for the non-accounting curriculum
At the time of study, self-assessment tax system has been implemented for seven years on salaried individuals, the survey found that the respondents’ level of tax knowledge was considerably low
Summary
Since the year of assessment 2004, the Inland Revenue Board Malaysia had launched a self-assessment system for individual taxpayers. Under this system, the onus to assess tax liability rests on the taxpayers. Individual taxpayers need to have some knowledge on taxability of income, deductibility of expenses, entitlements, reliefs, rebates and exemptions, in order to compute tax liability correctly. The statistics from the Inland Revenue Board Malaysia showed that the number of tax audit cases has increased from 2005 to 2009 and the number of additional tax and penalties raised has risen over the years (see Table 1).
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