NORRIZAL DALDIRI
TAX OPERATIONS DEPARTMENT INLAND REVENUE BORAD OF MALAYSIA
SYSTEM MODERNIZATION IN TAX ADMINISTRATION IN
MALAYSIA
SYSTEM MODERNIZATION IN TAX ADMINISTRATION
1. Introduction
2. System Modernization Efforts:
• Tax Administration System
• Customer Service Delivery
3. Moving Forward
Introduction: Background Of Malaysia
Malaysia
Area 329,847 km
213 States
3 Federal Territories Capital
Population 31.8 mil
Official language
Malay
Malaysia
Introduction :Functions Of IRBM
Other functions under any written
law
Other functions under any written
law
Collect tax for the Gov’t
Collect tax for the Gov’t
Participate in or outside Malaysia on
tax matters
Participate in or outside Malaysia on
tax matters
Advice Gov’t on tax matters
Advice Gov’t on tax matters
IRBM IRBM
Introduction : LHDNM Commitments
Collect revenue through effective collection and administration of taxes
Collect revenue through effective collection and administration of taxes
Review and introduce new and enhance existing processes and procedures
Review and introduce new and enhance existing processes and procedures
Review and introduce new and enhance existing computerized systems
Review and introduce new and enhance existing computerized systems
Expand and improve Service Delivery System Expand and improve Service Delivery System
Introduce other services
Introduce other services
2. System Modernization Efforts:
• Tax Administration System
• Customer Service Delivery
Reform In Tax Administration
Simplify Tax System
Modernize Tax Administration Reduce Tax Burden
Enhance R&D and Skill Training
Promote Investment Through Various Incentives Improve Investment Climate
Fostering Caring Society
Promote Domestic Consumption Underlying
Themes in Tax Reforms Underlying Themes in Tax
Reforms Implement Socio- Economic Policies Implement Socio- Economic Policies Restructure & Improve
Tax System
Restructure & Improve Tax System
Implementation Self Assessment System (2000s)
Implementation Self Assessment System (2000s)
Introduce legislation for current year basis of assessment
Introduce legislation for current year basis of assessment
Re-engineer work processes &
procedures
Re-engineer work processes &
procedures
Education &
publicity to tax agents &
taxpayers Education &
publicity to tax agents &
taxpayers
Re-training officers on new law, processes &
procedures Re-training officers on new law, processes &
procedures
Re-design &
modernize the system
Re-design &
modernize the system
Short time frame to prepare before
implementation Short time frame to prepare before
implementation
System Modernization: Impact of Self Assesment
Central Output Centre Central Output Centre
Central Processing
Centre Central Processing
Centre
Regional Processing
Centre Regional Processing
Centre Central
Storage Centre Central Storage Centre Branches
(Audit Function)
Branches (Audit Function) Customer
Service Centre Customer
Service Centre
SAS Impact to work processes SAS Impact
to work processes
System Modernization: Impact of Self Assesment
Tax Reform Progress
Self Assessment
System Self Assessment
System 2001 Corporate
2001 Corporate
2004 Non- Corporate
2004 Non- Corporate
2010 2010 RPGT
(Soon) RPGT (Soon)
2014 MTD Final
Tax
Tax Administration Model
Registration & Tax Return Management
Tax Assessment Management
Tax Collection Management
A p p lic ati o n s A p p lic ati o n s
Revenue Management System (ReMS) Revenue Management
System (ReMS)
Refund Management System Refund Management System
Revenue Accounting System (eRAS)
Revenue Accounting System (eRAS)
Business Support System Business Support System
Enterprise Taxpayer Profile (ETP)
Enterprise Taxpayer Profile (ETP)
• Knowledge Base
• Human Resource
• Finance
• Administration
Tax Audit Management System (TACS + CMS) Tax Audit Management
System (TACS + CMS)
Document Management System (DMS)
Document Management System (DMS)
Se lf A ss e ss m e n t Sy st e m ( SA S) Se lf A ss e ss m e n t Sy st e m ( SA S)
Suggest next best action
Suggest next best action
Monitoring of
collection & recovery cases
Monitoring of
collection & recovery cases
Manage recovery cases
Manage recovery cases Capture information on recovery
Capture information on recovery
Maximize Collection & Recovery Action
Revenue Management System
Revenue Management Models
DMAS + ReMS DMAS + ReMS
Data from Data Warehouse & ETP
•Analyze past behavior and data patterns to assess future behavior in order to maximize the likelihood of collecting outstanding tax debt.
Taco
s
•Employ predictive behavioral models to drive LHDN’s resource allocation to more effectively collect/prevent outstanding receivables.SPSS
Perform risk analysis
Perform risk
analysis Selection of audit cases
Selection of audit cases
Manage audit &
investigation cases Manage audit &
investigation cases Capture information on tax audit
Capture information on tax audit
Maximize Voluntary Compliance
Tax Audit Management System
TAX AUDIT AND COMPLIANCE SYSTEM (TACS)
Modelling, Profiling, Discovery, Analysis, Visualisation, Reporting Modelling, Profiling, Discovery, Analysis, Visualisation, Reporting
Table Maintenance, Server Job Wizard, Database Utilities Table Maintenance, Server Job Wizard, Database Utilities
• TACS relies on the Data Warehouse for data to be analyse
• It extracts the relevant fact tables from the Data Warehouse server
Types of data extracted
Structured data
Form B, BE, D, C
Alpha Features Base Features Computed Features
Derived Features
Document Management Systems (DMS)
Document
Management
System Document
Management
System
Assessment info
Assessment info
Collection info Collection
info
Returns Returns Correspondence
info
Correspondence info
Enable viewing
of digital records
DOCUMENTS MANAGEMENT SYSTEM (DMS)
Note:
BIG DATA ANALYTICS MODEL IN IRBM
System Modernization : Latest Development
HASiL International Data Exchange Facility- HiDEF
HiDEF
Hasil Power Data
Inteligence
& Profiling
System Modernization : Latest Development
2. System Modernization Efforts:
• Tax Administration System
• Customer Service Delivery System
Service Delivery System
M o b ile A p p lic a tio n s
Service Delivery System : Customer Engagement
Journey
2004 2004
2006 2006 2008 2008 2009 2009 2010 2010 2013 2013 2014 2014
2 0 1 5 2 0 1 5
2016 2016 2018 2018
Service Delivery System : Web Apps
Service Delivery System : Web Apps
TAX CYCLE FOR INDIVIDUAL /
COMPANY
e-CP39
Service Delivery System : Web Apps
Service Delivery System : Mobile Apps
3. Moving Forward
Current Challenges & Improvement Opportunities
4. The need for seamless & realtime integration for analysis, action and decision.
2. Limitation to current platform to support further improvement.
Systems support issues.
5. The need for quality data managements for analysis, analytic and decision making.
3. Batch job activities at its limit effecting tax operation and data sharing.
1. The need to reengineer the current work process.
6. Public demand for personalize and improve quality service.
Self Assessment System (SAS) : Re-engineering The System
Self Assessment System (SAS) : Re-engineering The System
