Open AccessAn Action Research Methodology into the Interpretation on Withholding Tax: In the Case of the Inland Revenue Board of Malaysia
Author(s) -
Hazlina Hussain,
Nor Aziah Abd Manaf
Publication year - 2019
Publication title -
indian-pacific journal of accounting and finance
Language(s) - English
Resource type - Journals
ISSN - 2590-406X
DOI - 10.52962/ipjaf.2019.3.1.62
Subject(s) - clarity , withholding tax , interpretation (philosophy) , action (physics) , tax administration , focus group , revenue , business , qualitative research , tax law , internal revenue , public economics , focus (optics) , public relations , accounting , law and economics , tax reform , political science , economics , state income tax , marketing , sociology , computer science , social science , biochemistry , chemistry , physics , optics , quantum mechanics , programming language , service (business)
This paper describes the research work undertaken by the authors in applying action research methodology to identify the interpretation spectrum of the withholding tax provision in respect of section 4A of the Income Tax Act 1967 and the related public ruling. There has been no similar study published on using action research to improve the clarity of withholding tax provision. This study discusses the interpretation spectrum of section 4A of the Act on withholding tax. It is essential to focus on tax clarity as tax uncertainty affect both taxpayers and tax administration. The research had adopted action research method and utilised qualitative method of data gathering by way of focus group and semi-structured interviews and concludes that section 4A need improvements and policymakers should focus their attention on enacting clear law so that taxpayers understand and comply with the law.