This chapter discuss about the introduction of this study, which included the information of the background of e-filling system in Malaysia, problem statement, research questions, research objective, and significance of study. 1. 1 Background The function of Inland Revenue Board Malaysia (RIBS) is to act as an agent for the government of Malaysia in the administration, assessment, collection and enforcement of income tax and other taxes within Malaysia.
Initially, the tax return was done manually. As information technology (IT) has become moon in this era, e-filing system has first been launched in Malaysia by the Inland Revenue Board Malaysia (RIBS) in February 2006. In many countries such as United States (US), Canada, Australia, New Zealand, Taiwan, South Africa, Singapore, the United Kingdom (K) and Japan, e-filing is offered as an option to taxpayers and their tax representatives and had progressively embraced (Ling & Fat, 2008).
In Malaysia, e-filing system provides another choice for Malaysia citizen to file their tax via internet rather than submit manually. E-filing can be used for non-business income forms, partnership arms, non-resident individual forms, employer forms and company forms. E-filing system is a system which provides conveniences for the public to submit their tax assessment or payment electronically at any time and from anywhere within a few mouse clicks.
E-filing system provides many aspects of conveniences to the taxpayers, as well as bringing benefits to the tax authorities. To the taxpayers, e-filing system offers time flexibility and reduces calculation errors on the tax return forms. To the tax authorities, e- filing systems minimize their workloads since the public can submit tax returns by their own. It also reduces the operational cost such as printing costs, delivery costs, scanning costs, processing cost, handling cost and storing cost of the data due to a paperless environment.
Despite there are many benefits associated through e-filing, there are only a plenty of users using e-filing system. In 2006, the fritterers of implementation of e-filing system, there is only 1 20,000 out of 4 million individual taxpayers had used e- filing, which mean that there is only 3% of the total individual taxpayers had fully utilized the e-filing system. Although there is an increase in the number f using e-filing in 2008 by 35. 78% to 88, 130 people compare to year 2006 and year 2007, it is still consider low usage of the system in Malaysia.
Lack of confidence towards the technology and the quality of the system, discomfort because of the exposure of privacy to the public, question about the effectiveness of using e-filing and perceive usefulness have become the factors which causes dissatisfaction among the tax e-filing users in Malaysia. Inland Revenue Board Malaysia (RIBS) has set a goal Of having 80 percent Of Malaysian tax payers to use e-filing in future. To increase the usage of e-filing yester provided by the government to the public, it is important to understand the view from the user’s perception and the response from the users after using the system.
Hence, this study aims to investigate the factors which will affect the satisfaction of individual taxpayers throughout the way of using e-filing system. 1. Problem Statement E-filing is designed to be a platform that provides convenience, cost and time- saving for individual taxpayers. The system of e-filing should be optimized for time-efficiency but also should be straightforward enough that it can be understood by all e-filing users easily. However, from 2006 to 2012, the number of e-filling user in Malaysia just arose from 5% to 37% (Doing Business ROR 2015).
Even though e-filing usage rate in Malaysia has been increase rapidly in these few years, it still quite far to the government expectation of having 80% of usage of e-filing in the future due to dissatisfaction of individual taxpayer to e;filling that arises from certain factors (Md. Animal Islam, 2010). There are some factors that lead to dissatisfaction of taxpayer on e-filing in Malaysia, summarized below: 1) The system of e-filing congested or jammed and became slow when nearing the benison date of tax filing due to heavy usage. 2) The server of e-filing down and users cannot access the website. ) User’s privacy has been threatened as his or her confidential information can be accidentally accessed by the others in the system. 4) The internet speed is not so good in some undeveloped zone and less developed zone in Malaysia such as rural place, Saba and Karakas and hence for the people who stay at there, e-filing is a hard task and even impossible to them. 5) The issue of ease of use of e-filing has not provided to guide users especially to some higher aged users (Md. Animal Islam, 2010). Today, satisfaction of individual taxpayer on e-filing in Malaysia has become a crucial area research.
Actions should be taken by government to solve the problems that summarized above in order to achieve the goal of 80% usage of e-filing in the future. Thus, this study will aim in identifying and determining the factors of privacy, convenience, system and information quality and perceived usefulness of e-filing that influence satisfaction of individual taxpayer. 1. 3 Research Questions I. What is the relationship between privacy and e-filling satisfaction among individual taxpayers? II. What is the relationship between convenience and e- filling satisfaction among individual taxpayers? Ill.
What is the relationship between system and information quality and e-filling satisfaction among individual taxpayers? IV. What is the relationship between perceived usefulness and e-filling satisfaction among individual taxpayers? 1. 4 Research Objectives I. To study the relationship between privacy and e-filling satisfaction among individual taxpayers. II. To study the relationship between convenience and e- filling satisfaction among individual taxpayers. Ill. TO study the relationship individual taxpayers. IV. To study the relationship between perceived usefulness and e-filling satisfaction among individual taxpayers. 1. Hypotheses Hal : There is a positive relationship between privacy and e-filling satisfaction among individual taxpayers. Ha: There is a positive relationship between convenience and e-filling satisfaction among individual taxpayers. Ha: There is a positive relationship between system and information quality and e-filling satisfaction among individual taxpayers. Ha:There is a positive relationship between perceived usefulness and e-filling satisfaction among individual taxpayers. 1. Significant of Study This study was conducted to understand the factors that influence the satisfaction of individual taxpayers on e-filing.
The main factors which discuss in this study included privacy of individual tax payers to the public, conveniences in using e-filing, system and information quality and perceived usefulness. Hence, this study will be focused on the selected factors stated previously and will also conduct further investigation and evaluation towards the factors chosen. This study will be helpful to whom planning to use e-filing to submit their tax assessment and tax return forms as this study will provide better view Of strengths and weaknesses Of using e-filing to all taxpayer in Malaysia.
Moreover, this study will provide recommendations on how to increase the usage rate of e-filing in Malaysia. Thus, the result of this research will provide a better understanding of the factors that affect the satisfaction of individual taxpayers on e-filing. Measurement of Variables This questionnaire consists oftener sections (Section A, B and C). The first section is demographic information. Second section consists of questions specify to the independent variables, which are privacy and security, system laity and perceived usefulness. Last section is to identify user satisfaction towards e-filing system in Malaysia.
Nominal scale will be used in section A. Liker scare with five-point scale will be used in section B and C, this rating scales designed to examine how strongly subjects agree or disagree. Besides, in five-point liker scale, respondents can give a neutral response by choosing the neutral option given. In five-point liker scale, 1 indicates strongly disagree, 2 indicates disagree, 3 indicates neutral, 4 indicates agree and 5 indicates strongly agree. Parts Variables Items Usefulness Demographic information Question 1-7 (Nominal Scale) To identify the basic information of all the respondents.
Privacy and security Question 8-10 (Five-point liker scale) To identify privacy and security of the system. System quality Question 11-13 To evaluate the system quality. Perceived usefulness Question 14-16 To determine the perceived usefulness of taxpayers toward e-filing system. C Users satisfaction Question 17-19 To identify users satisfaction toward e-filing system in Malaysia. We are students from CUSS University Koala Lump Campus and we are now doing research on the user satisfaction towards tax e-filing system in Malaysia. There are three (3) sessions in this questionnaire.