Publication: Control of Income Tax Evasion in Islamic (Shariah) and Malaysian Law (Comparative Study)
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Date
2013
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Publisher
AJBAS Publisher
Abstract
This paper discusses the issue of tax evasion through exploration of the Malaysian legislation in comparison with Islamic Law. In this paper we pointed out the problem of tax evasion as a phenomenon may threaten the economy system in the country and deploying injustice among taxpayers. The main objectives of this paper are to analyse the principles of the Islamic (Shariah), and the relevant legal provisions governing income tax evasion in Malaysia, to identify the most important causes underlying tax evasion, to Show the impact of tax evasion on the community, to indicate the most important methods to control income tax evasion, besides showing the similarities and differences in the Malaysian and Islamic legal systems. We tried to highlight the possible solutions by suggestions and recommendations based on the results of this research. The importance of this research appears as the subject is lack of discussion and may be considered the first of its kind in this field, as a work highlights the need to educate the income tax payers about the seriousness of tax evasion, the
consequent damages to the financial system and the public interest in country. In addition to its uniqueness in terms of comparisons to (Shariah), this expected to add richness to the research, and so will open the prospects for further studies on this subject. This research also highlights the need to educate the income tax payers about the seriousness of tax evasion, the consequent damages to the financial system and the public interest in Malaysia. Significant importance of this research can be seen in its contribution to the improvement of the Malaysian tax administration, where it provides some methods that will reduce the phenomenon of income tax evasion. This paper consists of three sections; the first is dealing with the provisions of income tax evasion in Islamic law (Shariah) and Malaysian law, the second highlights the causes and effects of tax evasion and the third section is devoted to show methods of controlling evasion of income tax in (Shariah) and Malaysian law. The paper has arrived at certain result in this field and concluded with certain reconditions, considered important in the point of view of the writer.
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Keywords
Tax Malaysian, Islamic Law, Evasion Control