SELF ASSESSMENT SYSTEM OF INDIVIDUAL INCOME EARNERS.
MATRIC NO: 802482.
MSC. INTERNATIONAL ACCOUNTING
COLLEGE OF BUSINESS
UNIVERSITY UTARA MALAYSIA
Individuals income earners in Malaysia commence to comply with the self assessment system when they file tax returns on income derived in the year 2004. However, under the self assessment system, income of individuals needs to passes some fundamental tax knowledge to file appropriate returns. Findings also reveal that they do not possess adequate knowledge on maters pertaining to personal income tax. As such they may lack the competency to the appropriate tax returns under the self assessment system (SAS).
Before the commencement of self assessment system(SAS) income taxes in Malaysia were assessed under the official assessment system (OAS) where by taxpayers where only refund to file their annual tax returns following the inland revenue .Board will only carry out the assessment and issues the taxpayers with notice of assessment.
All companies comply with self assessment system effective from the year of assessment 2001 while self assessment was applicable to all individual income earners commencing from the year 2004.The basis year constitute a basis period for a period of assessment . [section 21 of the ITA AS amended with effect from year 2004]
Individual that derived income in a particular calendar year, the tax can stipulated that assessment need to be filled by the 30th April of the following year. Income derived in the calendar year 2004-basis period 1.1.2004-31.12.2004 return for assessment should be filled and return by 30th –April 2005 whereby for the 1st time individual income earners will be required to file their tax returns under self assessment system (SAS).
MEANING OF SELF...