摘要
This study examines the feasibility of external tax audit implementation in Malaysia. External tax audit has been purported to enhance tax administration efficiency, deter tax evasion and noncompliance as well as improve tax collection for a nation. Therefore, this study solicits perceptions from various stakeholders on the new service while retaining the principle of justice that lies in the tax system. External tax audit refers to the process of business income tax returns being attested by other than the tax authority. External tax audit has been implemented successfully to increase tax compliance in some areas such as Taiwan, Bangladesh and United States of America. Therefore, this study examines the benefits and risks influencing the implementation of external tax audit in Malaysia from the viewpoints of corporate taxpayers and tax agents. Data is obtained through questionnaire from the selected respondents. Findings from multiple regression analysis reveal that tax agents and taxpayers agree with the implementation of this new service. For tax agents, the external tax audit has benefits and risks, while taxpayers believe that only benefits influence their agreement to the external tax audit. This study contributes to the tax literature by providing knowledge on the feasibility of external tax audit implementation in Malaysia.
