Abstract

Goods and Services Tax (GST) has been implemented in Malaysia since April 2015. One of its implementation is to become a better tax collection system that can drive economic growth and enhance competitiveness in global markets. Thus, authorities such as the Royal Malaysian Customs Department (RMCD) have encouraged business companies to implement and use GST computerized systems to improve tax collection systems and increase government incomes. However, the output of the system has some specific issues such as errors in tax invoices, incomplete invoices and business companies are unaware of GST treatment updates. Hence, this study aims to evaluate the effectiveness of the GST computerized system used by business companies in Malaysia, particularly from the perspective of compliance audit by RMCD. This compliance audit is to ensure auditing tasks can be performed systematically, transparently and fairly to registered companies. The findings of the proposed study are expected to provide guidance to local authorities to produce audit procedures on the GST computerized system. It will also assist Malaysian companies to use the system in an effective manner and will expedite tax collection system.

Keywords: GST, Accounting System,Taxation, Audit, Compliance

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