Factors Influencing the Duration of Tax Investigation Case Resolution in Malaysia: Perceptions of IRBM Investigation Officers

• Main Author: Norhariyanti, Kamarudin
• Format: Thesis
• Language: English; English
• Published: 2024
• Subjects: HJ4771.6 Income Tax. Tax Returns.
• Online Access: https://etd.uum.edu.my/11388/1/s831491_01.pdf; https://etd.uum.edu.my/11388/2/s831491_02.pdf; https://etd.uum.edu.my/11388/

The framework for criminal investigation was enforced in January 2023. This change resulted in different procedures and key performance indicators (KPIs) for investigators compared to previous years. The investigative procedures are rather complex leading to investigations taking longer to complete compared to civil inquiries. The feedback from investigators regarding the time taken and factors causing delays in completing criminal investigation cases need to be considered to ensure that the Investigation Department of IRBM can establish appropriate KPIs for investigators. Hence, this study aims to investigate factors influencing the duration of settlement investigation cases by utilizing the framework of Economic Deterrent Theory. With an adopted questionnaire, 135 useable responses were collected from investigation officers among IRBM. Data were analysed using the SPSS package and Smart PLS. The study's multiple regression analysis found that officer competencies, training on enforcement strategy, and understanding of tax law have a significant negative impact on the duration of tax investigation case resolution. Conversely, firm size has a significant positive impact on case resolution duration. The study emphasizes that the most influential factor affecting case resolution duration is understanding tax law, followed by training on enforcement strategy and officer competencies. Firm size has a comparatively smaller impact. As a result, it is important for the IRBM to take action on these findings, such as prioritising training and education programs focused on enhancing investigators' understanding of tax law and providing training sessions to improve officers' proficiency in enforcement strategies to ensure that investigation officer can meet the required case resolution durations set by the Investigation Department of IRBM.