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TABLE OF CONTENTS
TITLE
TITLE PAGE
DECLARATION
II
ACKNOWLEDGEMENT
SYNOPSIS
IV
SINOPSIS
V
TABLE OF CONTENT
1
LIST OF ABBREVIATIONS
3
LIST OF FIGURES
4

III

CHAPTER 1.............................................................................................................. 5
ORGANISATIONS COMPANY BACKGROUND............................................................5
1.1

INTRODUCTION......................................................................................... 5

1.2

THE IRBMS PROFILES...............................................................................6

1.3.1 The History of IRBM, Ipoh Branch (IRBM)..............................................7

1.4 THE OBJECTIVE OF IRBM IPOH.....................................................................8
1.4.1 Corporate Objectives.............................................................................8
1.6

THE BOARD MEMBERS OF IRBM..............................................................11

1.6.2 The Organisation Chart Ipoh Branch........................................................13

1.7

LOGO AND THE FLAG OF IRBM................................................................14

1.8

CONCLUSION........................................................................................... 16

CHAPTER 2............................................................................................................ 16
OPERATION, PRODUCTS &SERVICES.....................................................................16
2.1

INTRODUCTION.......................................................................................17

2.2

COMPANY GENERAL ROLES.....................................................................17

2.3 Responsibilities.......................................................................................... 18
2.4

FUNCTION OF DEPARTMENTS...................................................................19

2.4.1 Tax audit..............................................................................................20

2.4.2

Tax Collection.....................................................................................22

2.4.3 Reinforcement & Detection Units........................................................24

2.4.4 Legal Department.................................................................................25
2.4.5

Customers Services...........................................................................25

2.4.6

Stamps Duty......................................................................................26

2.4.7 Real Property Gains Tax units................................................................28

2.4.8 Administration & Finance......................................................................30
2.5 Services....................................................................................................... 31
2.6

Product.................................................................................................... 32

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2.7) CONCLUSION..............................................................................................33
CHAPTER 3............................................................................................................ 35
COMPANYS MANAGEMENT STRATEGY..................................................................35
3.1 INTRODUCTION...........................................................................................35
3.2 Vision, Mission, Slogan, Motto and the objective IRBM Ipoh Branch..........36
3.2.1 Vision:................................................................................................... 36
3.2.3 Mission:................................................................................................. 36
3.2.4 Quality Policy:.......................................................................................36
3.2.5 Slogan:.................................................................................................. 36
3.2.6 Services Motto:.....................................................................................36
3.3 The Internal and External Factor of the Organisation (SWOT)......................36
3.3.1

Internal Factor....................................................................................37

3.3.1.3 The External Factor............................................................................39

3.3.1.4 Threats............................................................................................... 41
3.3.1.5 Opportunities.....................................................................................42
3.4 THE RECOMMENDATION FOR FUTURE.........................................................45
3.5 Conclusion................................................................................................... 47
CHAPTER 4............................................................................................................ 48
INDUSTRIAL ANALYSIS...........................................................................................48
4.1 INTRODUCTION...........................................................................................48
4.2

THE DUTY PERFORMANCE OVERALL WEEK..............................................48

4.2.1 Administration and Financial Units.......................................................48

4.2.2 Mailing Units............................................................................................. 49
4.2.3 Law Department..................................................................................50
4.3

SUITABILITY OF TRAINING WITH FIELDS OF STUDY..................................51

4.4

Strength and weaknesses in Training......................................................52

4.4.1 Strengths............................................................................................. 52
4.4.2 Weaknesses.........................................................................................53
4.5

Encounter Problems................................................................................54

4.6

Conclusion.............................................................................................. 55

CHAPTER 5............................................................................................................ 56
conclusion............................................................................................................. 56
5.1

INTRODUCTION.......................................................................................56

5.2

THE PERSONAL OPINION ABOUT IRBM....................................................56

5.3

SUGGESTION AND RECOMMENDATION...................................................58

5.4

Overall Summarization............................................................................59

REFERRENCES...................................................................................................... 61
ATTACHMENT A..................................................................................................... 62
Attachment B........................................................................................................ 63
ATTACHMENT C..................................................................................................... 65

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LIST OF ABBREVIATIONS

AIPM Prime Ministers Innovation Award

IRBM Inland Revenue Board Malaysia
IRD Inland Revenue Depertment
ITA Income tax act
JPA Jabatan Perkhidmatan Awam
LHDN Lembaga Hasil Dalam Negeri Malaysia
MTD Monthly Tax Deductions
PKCP Pesuruh Khas Cukai Pendapatan
RPGT Real Property Gain Tax
WAP Wireless Application Protocol

LIST OF FIGURES AND TABLES

1. Figure 1.5 : Location IRBM maps in Ipoh

Sources: Google maps
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( Page 10 )
2. Figure 1.6: Organisation board
Sources: Official IRBM website
( Page 11 )
3. Figure 1.6.2: Ipoh branch organisation chart
Sources: Annual Report Desk Fail
( Page 13 )
4. Figure 1.7: Logo and flag of IRBM
Sources: Google website
( Page 14 )
5. Table1.1 : The flow out chart of the Tax Audit frame work
Sources: Tax Audit Framework IRBM
( Page 21 )
6. Table 3.3.1.3 :Internal Analysis
( Page 39 )
7. Table 3.3.1.4 : External Analysis
8. ( Page 43)

CHAPTER 1

ORGANISATIONS COMPANY BACKGROUND

1.1 INTRODUCTION

This chapter consist of the explanation of a companys background

consist of introduction about the company organisations name,
companys location, objective and philosophy. In 1 Mac 1996 IRD
was first time incorporated and known as the Inland Revenue Board
of Malaysia or Lembaga Hasil Dalam Negeri Malaysia (LHDN) arising
from the Government suggestion during the Budgeting Presentation
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for the year 2013 by the Minister of Finance on 30 October
1992.The establishment of this board is due to accordance the
enforcement of the Inland Revenue Board Malaysia Act 1995 (Act
533) that has been enacted on 16 February 1995. This Act allocates
IRBM to acts as the main revenue collecting agencies of the Ministry
of Finance.

1.2

THE IRBMS PROFILES

The Inland Revenue Board of Malaysia (IRBM) was established by the

government when the Income tax start been introduced in the
Malaya Federal on 1 January 1948 with enforcement of Income Tax
Ordinance 1947. In the year 1967, the ordinance has been merged
with the Sabah Income Tax Ordinances 1956 and the Sarawak
Income Tax Ordinances 1960 become Income Tax Act 1967 which
has been enforced on the first January 1968.

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On 1 November 1948, the first Return Form has been issued.
In the 1948 of November and December also in the early of 1949,
about 60,000 Income Tax Form has been sent to the potential
taxpayer and about 51,000 income tax form has been returned. The
Income Tax Office is firstly known as the Income Tax Department and
then transformed into the Inland Revenue Department (IRD) in 1957.
In 1 Mac 1996 IRD was first time incorporated and known as
the Inland Revenue Board of Malaysia or Lembaga Hasil Dalam
Negeri Malaysia (LHDN) arising from the Government suggestion
during the Budgeting Presentation for the year 2013 by the Minister
of Finance on 30 October 1992.The establishment of this board is
due to accordance the enforcement of the Inland Revenue Board
Malaysia Act 1995 (Act 533) that has been enacted on 16 February
1995. This Act allocates IRBM to acts as the main revenue collecting
agencies of the Ministry of Finance. IRBM was established in
accordance with the Inland Revenue Board of Malaysia Act 1995 to
give it more autonomy especially in financial and personnel
management as well as to improve the quality and effectiveness of
tax administration. This Board is responsible for the overall
administration of direct taxes under the following Acts:
1) Income Tax Act 1967,
2) Petroleum (Income Tax) Act 1967,
3) Real Property Gains Tax Act 1976,
4) Promotion of Investments Act 1986,

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5) Stamp Act 1949,
6) Labuan Offshore Business Activity Tax Act 1990.
1.3

THE HISTORY OF INLAND REVENUE BOARD OF MALAYSIA,

PERAK

1.3.1

The History of IRBM, Ipoh Branch (IRBM)

On 1 September 1951, after the establishment Kuala Lumpur branch,

Pulau Pinang and Malacca, the Ipoh Branch has been established. At this
moment, in the whole state include Perak, Cameron Highland and Pahang
is under the administration of Ipoh branch. After that, the district
administration has been made in 1953 which the first office of Ipoh branch
is located at the level 1 , Chua Cheng Bok building ,94 Brewster Road,
which also known as Jalan Sultan Idris Shah.
In 1959, the increasing number of files and the number of
workers cause this branch has been moved to the Chinese Association of
Sale and Purchase rubber is located at no. 2, Jalan Ali Pitchay, Ipoh and
was placed on the second floor of the building. In the year 1976, this
branch was occupying the whole fourth level in the building. In the next
year 1981, The Salaries Department and Investigation Centre has been
moved to the 3rd and 4th level of the Bangunan Federal Realty, 28 Jalan
Hussin, Ipoh ,Perak.
After 25 years of occupying in the building at Jalan Ali
Pitchay, on July 16, 1984, this branch has been moved to the Wisma U
Meng (now known as Maybank Trust Building Hasil at No.128, Jalan
Tambun Ipoh, Perak.

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1.4

THE OBJECTIVE OF IRBM IPOH

1.4.1 Corporate Objectives

The general objective

To create and implementing an effective, fair and equitable tax

systems.

The Operation objective

Collect the taxes without incurring a high burden o the public at a

minimal cost to the government.

To produce a public confidence in the

superiority of the present tax system

To encourage the public voluntarily to pay taxes

about the fairness and the

The Branch Objective

To increase the revenue through the assessment and collection of

all sources can be taxed according to the guidelines and provision

under the ITA 1967 and the other related legislation.

To determine the payment of any tax that should be taxed in

upholding the principles of justice for all parities.

Increase the level of compliance among the taxpayers to the
relevant tax regulation.

1.4.2 COMMITMENT OF IRBM

To further enhance the management aspects of the taxation, the
IRBM will always be one step ahead and make an innovation
continuously so that they will become a world class tax services.
IRBM was practising an innovation culture that based on integrity
and ethics since the strong value of integrity will give benefit the
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organization. IRBM continuously makes an improvement and
innovation in the development of electronic services network to
offer to the customers.
The IRBM commitment in injecting an element of innovation and
creativity is recognized when being awarded as Prime Ministers
Innovation Award (AIPM) 2009 and on 2010.This also can be seen in
their pledge:
We, the officers of the Lembaga Hasil Dalam Negeri
Malaysia, pledge that we will,

Focus our energy and efforts to achieve the objectives of our

organization;
Collect taxes according to the laws of the country;
Install public trust in the fairness and excellence of our tax
administration;
Encourage the public to pay the correct amount of taxes
voluntarily.
And are determined to,
Provide friendly, helpful and satisfying service;
Carry out our duties with efficiency, quality and effectiveness;
Uphold the values of trustworthiness, honesty, full responsibility
and a positive outlook;
Forever strive to improve the image of the Lembaga Hasil Dalam
Negeri Malaysia.
1.5

COMPANY NAME AND THE LOCATION

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Inland Revenue Board of Malaysia (IRBM, known as Income Tax Office)
and is one of the main revenue collecting agencies under the Ministry
of Finance act as agent of the Government and provide services in
administering, assessing, collecting and enforcing payment of income
taxes, petroleum income tax, real property gains tax, estate duty,
stamp duty and any other taxes as may be agreed between the
Government and the Board Director.IRBM, known as Income Tax Office)
consists of several departments as well as several branches in every
state. For Ipoh IRBM Branch , it located at Wisma U Meng building,
No.128, Wisma Hasil ,Jalan Tambun Ipoh, Peti Surat 250,30906 Ipoh,
Perak.

They

also

can

be

contact

by

their

official

website

http://www.hasil.org.my and contact number 05-5475522 or fax

number at 5475668/05-575707. The IRBM Ipoh branch location can be
identifying as shown as in the maps below:
Figure 1.5 : Location IRBM maps in Ipoh

Sources: Google maps

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1.6

THE BOARD MEMBERS OF IRBM

Figure 1.6: Organisation board

Sources: Official IRBM website

Members of the Board

The Inland Revenue Board of Malaysia consists of:
Chairman:
YBhg Tan Sri Dr. Mohd Irwan Serigar Bin Abdullah
Secretary General of Treasury
Treasury Malaysia

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Members:
Ybhg Tan Sri Mohamad Zabidi Zainal
Director General of Civil Service Malaysia
Civil Service Department

Ybhg Datuk Wan Selamah Binti Wan Sulaiman

Accountant General of Malaysia
Accountant Generals Department

Ybhg Dato Siti Halimah Binti Ismail

Secretary of Tax Analysis Division
Ministry of Finance

Ybrs Cik Junaidah Binti Hj. Abdul Rahman

Commisioner of Law Revision and Law Reform
Law Revision and Law Reform Division

Ybhg Datuk Haji Shuib Bin Md. Yusop

Private Consultant

Ybhg Dato Mohd Salleh Bin Mahmud

Private Consultant

1.6.2 The Organisation Chart Ipoh Branch

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Figure 1.6.2: Ipoh branch organisation chart

Ipoh
Ipoh Director
Director
En.
Chankngari@Yusuf
En. Chankngari@Yusuf
Daud
Daud

Executive Officer
Officer
Executive
Assistant
Assistant
Suliana
Ahamad Shabri
Shabri
Suliana Ahamad

Administration
Administration
and
and Finance
Finance
Rahman
Rahman Bin
Bin Abd
Abd
Manan
Manan
Deputy
Deputy Director
Director
branch
branch
Siti
Siti Zaliha
Zaliha Ghazali
Ghazali

The
Ass.
The Chief
Chief Ass.
Director
Director
Leong
Tuck Heng
Heng
Leong Tuck
Customer
Customer
Services
Services
Kelsum
Yasin
Kelsum Md
Md Yasin

RPGT
RPGT
Sarina Mohd
Sarina
Mohd
Ibrahim
Ibrahim

Stamp
Stamp Duties
Duties
Shamsiah Mohd
Shamsiah
Mohd
Radzi
Radzi

Inspetoration
Inspetoration
Razimah Yunus
Razimah
Yunus

The
Ass.
The Chief
Chief Ass.
Director
Director
Tan
Tuan Tuan
Tan Tuan
Tuan

ASS
ASS GROUP
GROUP 1
1
Lim
Lim Chong
Chong Huat
Huat

The
The Chief
Chief Ass.
Ass.
Director
Director
Zaleha
Husain
Zaleha Husain

Desk
Desk Audit
Audit
Noorlia Shah
Noorlia
Shah Bidin
Bidin

ASS
ASS GROUP
GROUP 2
2
Mohd Ahmad
Mohd
Ahmad Fazly
Fazly
Ramly
Ramly

ALS
GROUP 1
ALS GROUP
1
Anuar Yaakub
Anuar
Yaakub

ALS
2
ALS GROUP
GROUP 2
Rajendran
Rajendran
Muniandy
Muniandy

Desk
Desk Audit
Audit
Hamidah
Hamidah Omar
Omar

Desk
Desk Audit
Audit
Nabihah
Nabihah Che
Che
Hussin
Hussin

Document
Document
Management
Management
Sree Sulosana
Sulosana
Sree
Ramanathan
Ramanathan
Chettiar
Chettiar
The
Chief Ass.
Ass.
The Chief
Director
Director
Norashikin
Rafie
Norashikin Rafie

Legal
Legal
Nor
Asmah Adam
Adam
Nor Asmah

Account
Account
Receivables
Receivables
Maznah Mohamed
Maznah
Mohamed
Zan
Zan

Repayment
Repayment
Nor Aryanti
Aryanti Abdul
Abdul
Nor
Rani
Rani

ALS
ALS GROUP
GROUP 3
3
Basariah
Basariah Ayoep
Ayoep

PCB
PCB AUDIT
AUDIT
Ismail Ibrahim
Ismail
Ibrahim

Sources: Annual Report Desk Fail

1.7

LOGO AND THE FLAG OF IRBM

Figure 1.7: Logo and flag of IRBM

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Sources: Google website

IRBM's new flag and logo represent the mission, integrity, a responsibility,
the equilibrium, the fairness and the transparency in tax administration.
This flag has five columns which the two blue columns on the left and right
side of the flag, two yellow and blue columns at the both side and one
white column in the middle of the flag IRBM logo.
The five columns are in line with represent the principles of IRBM
and as a symbolization of justice and an equality of IRBM administrator to
perform their functions as the direct tax nation.
Each of the blue columns means IRBM mission to give a high
quality and integrity tax services towards improving the voluntary
compliance.
This column reflects the pulse of the IRBM in committed to the
effective use of resources for the direct tax revenue in order to achieve
national development goals.
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The two yellow columns represent the integrity of IRBM tax
administration and implementing an effective, fair and equitable of tax
management system. This also represents the committed IRBM mission
and vision due to meet the quality of innovation policy towards to facilitate
the client tax responsibility.
The white column represents the responsibility as the tax
administrators

adhere

to

the

principles

of

rule

of

the

country,

professionalism and the integrity to carry out their duties, delivering the
best services to our customers, to ensure voluntary compliance and
improve the corporate image IRBM.
1.8

CONCLUSION

IRB Ipoh branch is a company with high competitiveness, and has its own
advantages. Service provided emphasizing the excellence of civil servants
and make IRBM as a premier organization of tax in respect of all groups
and communities. Its one of the main revenue collecting agencies under
the Ministry of Finance act as agent of the Government and provide
services in administering, assessing, collecting and enforcing payment of
income taxes, petroleum income tax, real property gains tax, estate duty,
stamp duty and any other taxes as been agreed between the Government
and the Board Director.I

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CHAPTER 2
OPERATION, PRODUCTS &SERVICES

2.1

INTRODUCTION

This chapter will introduce about the operations, products and services
that provided by IRBM to its customers. Its also describe about the
general function of the IRBM and existing department or main units
that have been operate under the IRBM Ipoh Branch and the
framework. Besides that, this chapter will show the relationship
between each unit to the others and their goal achievement
strategies.
As the national direct tax collecting agent, IRBM was committed
to the recommended and government also has their commitment to
increase

the

delivering

of

services

system

across all

Jabatan

Perkidmatan Awam (JPA). Inland Revenue Board of Malaysia (IRBM,

known as Income Tax Office) and is one of the main revenue collecting
agencies under the Ministry of Finance act as agent of the
Government

and

provide

services

in

administering,

assessing,

collecting and enforcing payment of income taxes, petroleum income

tax, real property gains tax, estate duty, stamp duty and any other
taxes as been agreed between the Government and the Board
Director.IRBM, known as Income Tax Office consists of several
departments as well as several branches in every state.

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2.2

COMPANY GENERAL ROLES

The roles of the Board are to act as agent of the Government and to
provide

services

in

administering,

assessing,

collecting

and

enforcing payment of income tax, petroleum income tax, real

property gains tax, Labuan offshore business activity tax, stamp
duties, estate duty and such other taxes.
They also advance the Government on matters relating to
taxation and to liaise with the appropriate ministries and statutory
bodies on such matters. To participate in meetings, discussions and
agreements in or outside Malaysia in respect of matters relating to
taxation. Besides that, they also act as collection agent on behalf of
any lending body of the recovery of loans due for repayment to that
body under any written law. To perform such other function as are
conferred on the Board by any other written law.
2.3

Responsibilities

IRBM is responsible to the Government in administering the

following laws:
1.
2.
3.
4.
5.
6.

Income Tax Act 1967;

Real Property Gains Tax Act 1976;
Promotion of Investments Act 1986;
Stamp Act 1949;
Petroleum (Income Tax) Act 1967; and
Labuan Offshore Business Activity Tax Act 1990.

The IRBM also administers the Double Taxation Agreements signed

between the Government of Malaysia and other countries as well as
observing laws relating to its functions, which are:

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1. Federal Constitution.
2. Companies Act 1965.
3. Bankruptcy Act 1967.
4. Court of Judicature Act 1964.
5. Interpretation Act 1948 and 1967.
6. Government Proceeding Act 1956.
7. Limitation Act 1953.
8. Inland Revenue Board of Malaysia Act 1995.
9. National Land Code 1965.
10.Criminal Proceeding Code.
11.Penal Code.
12.Rules of High Court 1980.
13.Subordinate Court Rules 1980.
14.Companies Winding-Up Rules 1965.

The LHDN also administers repealed acts for past years cases such as
Estate Duty Enactment 1941 and Share Transfer Tax Act (Land Based
Companies) 1984.
2.4

FUNCTION OF DEPARTMENTS

IRB organizations operate in accordance with the authority centres

which consists of the highest IRBM the head office centred in Kuala
Lumpur, followed by the state office of the Director which is located
in every state and territory as well as the final stage of the branches
or at centres each of the states. The Department of at the head
office is a as for dealings the policy makers which involves the
administration, the collection and the enforcement Development
Division the assessment of income tax, petroleum tax, Property
Gains Tax, the Estate Duty, stamp duties and other taxes as agreed
by the government and their IRB. Besides that, they also provide
advice the government on overall matters relating to taxation.
Meanwhile, the State Director offices are a responsible in
discharging the policies laid down by the head office as well as to be
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accountable to the branches and centres. For the last are branches
in each state. A branch is responsible for the implementation of the
policies prescribed by the head office and instructions made by the
state director. In the organisation IRBM under Ipoh Brach, there are
8 main activities that permanently operating which is by carry out
by units:
a)
b)
c)
d)
e)
f)
g)

Tax Audit
Tax Collection
Reinforcement & Detection
Legals
Customers Services
Stamps Duty
Real Property Gains Tax
h) Administration & Finance
2.4.1 Tax audit
Their responsibility is to make sure the taxpayer to comply with the
provisions of the current taxation laws and regulations in the
environment. Tax Audit is carrying out by two methods which is:
i.

Desk Audit
A desk audit is carried out at the IRB offices. It involving issues of
tax

adjustment

of

simple

and

are

conducted

through

correspondence. The taxpayer possible is called to the office of The

ii.

IRB to be interviewed for purpose of getting further information.

Field Audit
Field audit carried out on the premises of taxpayers. It involves a
review businesses records and also records of non-business
taxpayers. Usually the taxpayers will be informed before external
internal audit visits carried out.
The Objective of Tax Audit Unit:
The main objective of tax audit is to encourage voluntary
compliance with the tax laws and regulations and to ensure that a
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higher tax compliance rate is achieved under the Self Assessment
System. In this regard, the audit officer is required to ensure that
the correct amount of income has been reported and the right
amount of tax has been paid in accordance with the tax laws and
regulations. The purpose of achieving voluntary compliance, the tax
audit activity is one of the measures undertaken by IRBM to educate
and create awareness of taxpayers towards their rights and
responsibilities under the provisions of the ITA.

Table1.1 : The flow out chart of the Tax Audit frame work:

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Audit vanue
Audit is carried out on-premises businesses taxpayers. If the business
premises does not suitable for conducting audits, taxpayerstax may suggest
to other place.

An intitial Audit
A taxpayer who is selected for an audit will be notified by a letter. normally
confirmations visits will be notified by phone first. Apart from the the date of
visit, a letter posted the notice records should be available for an audit as
well as the names of officers who will carry out the audit.

The Visit
The audit normally starts off with an interview to enable the audit officers
to meet the taxpayer, obtain an overview of the taxpayers business
activity and to discuss the audit.During the audit process, the person
responsible for the handling of taxpayers business records will also be
interviewed.

Examination of Records
The audit officers will examine all documents and records necessary to
ascertain that the correct amount of income has been reported.

Settlement of Audit
After concluding the audit work, the audit officer will prepare an audit
findings report for approval by the Branch Audit Manager. Under certain
circumstances, the taxpayer is required to be present at the IRBMs office
for discussion on the proposed tax adjustments. The audit officer,
together with at least one senior audit officer, shall discuss the proposed
adjustments with the taxpayer. If there is no adjustment, the letter will be
issued to inform the audit.

Sources: Tax Audit Framework IRBM

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2.4.2

Tax Collection

Tax collection units is the main agency to the government in ensuring the
tax is collected efficiently and effectively. The tax debt or tax arrears must
be kept at a minimum in order to achieve the targeted performance. IRBM
has implemented various methods to reduce the amount of tax arrears.
The collection mechanism adopted to collect current taxes and tax arrears
is continuously streamlined to ensure the effectiveness of tax collection
activities. There are many types of ways tax collection methods:
1) Tax collection instalment methods
There are two categories of tax collection through instalment payment:
a) Individual taxpayers with business income:
b) Companies, co-operatives, trust bodies, unit trusts and investment
trusts
Failure to adhere to the instalment payment schedule will result in a tax
increase of 10% on the balance of unpaid instalment for both categories of
taxpayers.

2) Monthly tax deduction Individual taxpayers with salaried income may

pay taxes through Monthly Tax Deductions (MTD) deducted by their
employer from the employees monthly salary. The calculation of MTD
is adjusted with:
a) Giving exemptions to allowance/perquisite/gift/ benefits which are tax
exempted (Budget 2009);
b) To include the value of benefits in Kind/Value of Accommodation as part
of salary (if applicable);
c) Allowing deduction/rebate claims for any of the months.

3) Collection of withholding tax

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Tax on several types of payment that received by non-resident from
resident payers in Malaysia is collection by carried out for the types
of income under the provision of the Income Tax Act (ITA) 1967.
2.4.3

Reinforcement & Detection Units

This department is responsible to create a planning for the annual
programs for the branch detection. They also carry out an activity to
detect non-compliant taxpayers to notify the changing of their
addresses or no reason for the returned delivered form.
Besides that, they also are performing all the instructions and
the action in order to help the process of tax collection provide a
more efficient as well as competitiveness. The enhancement of
these units allows the detection unit to detect and assessing the tax
payers who is rigid and fails to report their income taxes correctly
and accurately.

Business Survey
Business survey operations are being carried out by this units for
the

taxpayers

business

premises

in

an

effort

to

improve

compliance, to expand the tax base and to collect taxpayers basic

information. In addition, taxation consultancy services on record
keeping laws and tax regulation that must be complied with are also
provided to taxpayers. A review of the implementation of the
scheduler tax deduction and tax instalment schemes are also made
during the business survey operation.

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2.4.4 Legal Department

The legal department is responsible in managing any case that

occurs due to the taxpayers who is rigid in the tax payment. All
their acts were performing based on the Office Director regarding
the matter in laws.
1) Advise and enacted the legislation
Making a reference to the top legal officer
Give an advice also an opinion about the procedure in
criminal and
2) The tax appeals and the judicial review
Make sure all the cases is sent to the PKCP in the period time

given
Immediately inform to the Director Officer about the judicial

review to extend to the Legal Department

Inform the Department the progress of the cases that have

been decided by court.

To make sure the follow up action has been decide by the

court.
To make sure the witness that has been involved in the
judgement come to the courts as has been decided.

2.4.5

Customers Services
The main purpose of the implementation of the customer
service program and units is to create tax awareness and
knowledge to taxpayers, future taxpayers, tax agents,
employers and the public, especially on taxpayers rights and
responsibilities. Existing activities will be enhanced, while
new activities will be introduced to reach and benefit the
target groups.

24

[Type text]
Obtaining information
The IRBM provides facilities for taxpayer have to communicate,
either by:
Direct interaction at service counters at branches nationwide, or
sending letters or e-mail from the website, or
Phone call to the call centre.
In addition, the LHDN enhances dissemination of information
through

seminars,

throughout

the

talks,

year.

The

courses
website,

and
also

workshops
displays

organised
the

latest

information on taxation, while serving as a facility to reach the

LHDN and to download
Obtaining and sending return forms
Apart from posting tax return forms to all eligible taxpayers, the
LHDN also provides a facility to download a copy of the tax return
form from its website, enabling taxpayers to send the completed
form directly to the LHDN.
Making payments
Taxpayers may make tax payments through their employers, by
mail, at payment counters, banks and bank portals electronically.
2.4.6

Stamps Duty
Stamp duties are imposed on instruments and not transactions. An
instrument is defined as any written document and in general,stamp duty is levied on legal, commercial and financial instruments.
The person liable to pay stamp duty is set out in the Third Schedule
of Stamp Act 1949.
The Assessment and Collection of Stamp Duties is sanctioned by
statutory law now described as the Stamp Act 1949

TYPES OF DUTY
a. Ad Valorem Duty

25

[Type text]
The rate of duty varies according to the nature of the instruments
and the consideration stipulated in the instruments or the market
value of the property.
The imposition of ad valorem duty (that is, according to the value) is
on:
Instruments of property including marketable securities ,shares of
other companies and of non-tangible property Instruments
creating interests in property (e.g. Tenancies and Statutory

Leases)
Instruments of security for monies, including instruments creating
contracts for payment of monies or obligation for payment of

monies
Certain capital market instruments
b. Fixed Duty
Duty is imposed without any relation to the consideration paid or
amount stated in the instrument. The imposition of fixed duty is on:
A number of other legal, commercial, mercantile or capital market

instruments
A duplicate or a subsidiary or a collateral instrument that has

been duly stamped.

Instruments liable to stamp duty are those listed in the First
Schedule of the Stamp Act 1949

PENALTY (STAMP DUTY)

An instrument may be stamped within 30 days of its execution if
executed within Malaysia or within 30 days after it has been first
received in Malaysia, if it has been executed outside Malaysia. If it is
not stamped within the period stipulated, a penalty of:
(a) RM25.00 or 5% of the deficient duty, whichever is the greater, if
stamped within 3 months after the time for stamping;

26

[Type text]
(b) RM50.00 or 10% of the deficient duty, whichever is the greater,
if stamped after 3 months but not later than 6 months after the time
for stamping;
(c) RM100.00 or 20% of the deficient duty, whichever is the greater,
if stamped after 6 months from the time for stamping; may be
imposed.
2.4.7 Real Property Gains Tax units
Real Property Gains Tax (RPGT) is the rate levied on the profits from
the disposal properties (flats, houses, condos, apartments, farms,
vacant land, etc.). Begin October 21, 1988, extended this tax on
profits from disposal of the shares in the Company Real Estate.
Through the Real Property Gains Tax (Exemption) Order 2007
[PU (A) 146/2007] Minister of Finance to exempt any person from all
provisions ACKHT 1976 to the disposal of assets after March 31,
2007. The exemption order has been cancelled with effect from
January 1, 2010 through the Real Property Gains Tax (Exemption)
Order 2009 [PU (A) 376/2009]. This means that the disposal of any
asset can be taxed from April 1, 2007 until December 31, 2009 is
exempted from RPGT.
Minister to exempt any person from the application of
Schedule 5 of the Act for the payment of tax on the taxable profit on
the disposal of any asset can be taxed on or after January 1, 2010 if
the disposal is made after five years from the date of acquisition of
the be taxable.
ii. If the disposal of chargeable assets made within 5 years from the
date of acquisition of the asset can be taxed, the Minister to exempt
any person from the application of Schedule 5 of the Act for the
27

[Type text]
payment of tax on the taxable profit on the disposal of chargeable
person on or after 01 Januari 2010 with the condition that the
amount of taxable profit shall be determined according to the
following formula:
AxC
B
A is the amount of tax imposed on the taxable profits of such
person in accordance with the applicable tax rate is reduced by the
amount of tax imposed on taxable profits at the rate of five per
cent;

B is the amount of tax imposed on the taxable profit in accordance

with the applicable tax rate;
C is the amount of profits that can be taxed.

Example:
ZZ Sdn Bhd to buy a home store on 02/24/2007 at RM240, 000 and
sell on 04/02/2010 shop houses at RM300, 000. Property holding
period is 3 years, then the disposal is subject to a tax rate of 20%.
Taxable income using the above formula is as follows:
RM
Return value 300,000
Less: Price earnings 240,000
Gain on disposal 60,000
Exempt profits:
(60,000 x 20%) - (60,000 x 5%) x 60,000 = 45,000
(60,000 x 20%)
Taxable profit:
(60,000-45,000) = 15.000
The tax charges: 15,000 x 20% = 3,000
Note:
The effective tax rate is 5% on gains on disposal of assets (60,000 x
5% = 3,000)

28

[Type text]
2.4.8 Administration & Finance

Financial Units
Their responsibility is to provide estimates of expenditure and
submit the Director Officer of State. They also control expenses,
operating and development branch, monitor development projects.
Other than that, all the application to loan a transportation and
computer is manage by this unit.
Administration Units
The Administration functional to plan and guide operate affairs
administrative, management, staff members and practical student,
and also to make sure that the financial infrastructure is working
efficiently. In addition, it works to ensure that the administration,
service management, finance and accounts and procedures carried
out in accordance with the instructions by the Director Board of
Branch.
2.5 Services
This is a new service which is named m-Filing is similar to e-Filing
that have been introduce by TRBM to their customers except it
caters specifically for mobile browsers. m-Filing is currently only
eligible for submitting resident individual without business income
tax form. Starting March 1, the IRB introduced the latest innovations
to facilitate financial transaction delivery of Mobile Filing system
ITRF or m-Filing. These apps are available to facilitate resident
individuals who do not have income from business sources (must
complete Form BE).

29

[Type text]
Now taxpayers can use their mobile devices to fill out the
BNCP and further explains the amount of tax incurred before the
deadline of form submission latest by 30 April.
The filling and form submission information can be done
anywhere without having to download any additional software.
Among mobile devices supported are the iPhone and iPad with iOS
version 4.0 and above, the Android version 2.2 (Froyo) and above,
BlackBerry (OS 6 and above) and Playbook: Windows Phone 7.0 or
above and 7.5 (Mango).
The taxpayer does not have to worry about the security of mFiling this application because the IRB still retains the existing usage
of Digital Certificate similar to those used for e-filing application.
With m-Filing will BNCP delivery Easy, Accurate and Secure
Requirements for m-Filing

Mobile browser

Network mode : WAP, GPRS, EDGE or 3G

How to access m-Filing
1) Open your mobile browser.
2) Enter this URL: https://mfiling.hasil.gov.my or log in to e-Filing
website and click the 'm-BE 2011' icon.
3) Log in using the same Digital Certificate as you would use for eFiling.
New users
Visit https://e.hasil.gov.my/ and

click

Permohonan

No.

Pin

to

register a Digital Certificate.

2.6

Product
LHDNM ez-Filing is a one of their product which allows the taxpayers
to submit their Tax Return Forms electronically via the internet. This
30

[Type text]
service is available for free. Initially, this application was introduced
to corporate taxpayers in 2003 and later it was expanded to
individual taxpayers in 2004.
In this product, its consist more than 5 applications to use which is:
1) e-Daftar
To register as a new taxpayer as individual or company
2) e-Filling
Declare income and submit the Income Tax Return Form

3) e-PCB
Help the employers who do not have computerised payroll
4)

5)

6)

7)

8)

9)

sytem to calculate the MTD.

e-Lejar
Check the tax position
e-SPC
Employers reported employee cessation for tax clearance
letter
e-Datapraisi
Prefill of remuneration particulars from employers in e-Filling
SMS
IRBM short massage services
e-Bayaran
Income tax payment facilities
e-DataPCB
Help employers to check the format and upload CP 39 text

file
10)
e-Kemaskini
Update personal details
11)
STAMPS
An application for stamping approval and payment of duty
12)
TAef
E-Filling for registered tax agents
13)
Calculator PCB
Help employers and employees to calculate MTD
2.7) CONCLUSION
The

focus

improvement

efforts

and

customer

communications

management, operation and administration of the law of responsibility and

appreciation

of

positive

corporate

values

include

integrity

and

transparency factor in its duty as the direct tax collection agent. In

31

[Type text]
addition to exploring new opportunities to improve the level of customer
service, IRB emphasizes the sharing of experiences and best practices in
tax administration and abroad. The strategies implemented by the IRB in a
holistic and rigorous appear to have an impact in terms of improving the
quality of services and products provided to the community. IRB has been
strengthened by the success of the reaction innovative and creative in
maintaining service performance.

CHAPTER 3
COMPANYS MANAGEMENT STRATEGY

3.1 INTRODUCTION
In 1 Mac 1996 IRD was first time incorporated and known as the
Inland Revenue Board of Malaysia or Lembaga Hasil Dalam Negeri
Malaysia (LHDN) arising from the Government suggestion during the
Budgeting Presentation for the year 2013 by the Minister of Finance
on 30 October 1992.The establishment of this board is due to

32

[Type text]
accordance the enforcement of the Inland Revenue Board Malaysia
Act 1995 (Act 533) that has been enacted on 16 February 1995. This
Act allocates IRBM to acts as the main revenue collecting agencies
of the Ministry of Finance. IRBM was established in accordance with
the Inland Revenue Board of Malaysia Act 1995 to give it more
autonomy especially in financial and personnel management as well
as to improve the quality and effectiveness of tax administration.

The main objective in this chapter is to describe about

company management or context business is to determine the level
of critical and important of the function and business area in the
organisation. The company strategies must be plan by consider the
function and this business area .This this stage, its very important
to understand about the environment IRBM operations which the
main purpose to prepare the effective framework strategies. So, in
this chapter will describe detailed about the vision, mission and goal
achievement. The strength, weaknesses, threat and opportunity
also will be indentifying to improve the company performance.
3.2 Vision, Mission, Slogan, Motto and the objective IRBM Ipoh
Branch

33

[Type text]

3.2.1 Vision:
To be a Leader in Tax Administration
3.2.3 Mission:
To provide taxation services with quality and integrity towards promoting
voluntary compliance.
3.2.4 Quality Policy:
With integrity as a foundation, we are committed to giving the best
services to our customers.
3.2.5 Slogan:
Together we develop the nation
3.2.6 Services Motto:
The best services for you
3.3 The Internal and External Factor of the Organisation (SWOT)
In order to generate the company strategies and performance, SWOT
analysis tool is use for establish the company strengths, weaknesses,
external opportunities and the threat it faces. SWOT can help to generate
a summary of a strategic situation. Strengths and weakness can include
skill and expertise potential or competitive capabilities. Meanwhile the
opportunities and threat is come from outside the organisation and
environment. In SWOT, its cover:

Strengths that usually cover factors such a s product or services

quality, lower costs than the competition, effective processes and well

trained staff.
Weaknesses tend to be internal to the organization such as relative
size compared to the competition, size of operation, amount of

34

[Type text]
experience in particular geographic region when looking at new

markets.
Opportunities derived from factors outside of the organization such
as new export market opportunities, difficulties that competitors face,

etc
Threats take the form of competitor actions such as launch of new
products rendering your goods obsolete or unfashionable

3.3.1 Internal Factor

3.3.1.2 The Strengthens
a) Efficient and effective management
The

IRBM

is

committed

to

administration taxation law to

efficiently

and

effectively

achieve the collection target

without burdening the taxpayer with a high compliance cost.

Besides that, their main director of organisation has a very good
quality

in

leadership,

dynamics

and

also

very

dedicates

personalities.
b) An excellent performance in customer services
The cultural and concept of friendly, helpful and satisfying
services to customers has been develop in their department.
Within this concept in this department, will enhance the IRBMs
image by ensuring a good relationship with the customers and
publics .It also encourage the taxpayer to pay tax voluntary and
as the key to increase to the country revenue. They also will
receive any suggestion and question from the customers and
provide the call centre and also can visit at IRBM website and Email. Besides that, they also provide the call centre for any
complaints from the customers.
c) A clear mission ,vision and goal

35

[Type text]
IRBM has a very clear vision, mission and policy services to
enhance

the

organisation

performance

that

need

to

be

understood by all staff that involved in this organisation. Each of

the members is important as a one football team. The goal is
needed to achieve the victory for the team.
d) Always be one step ahead
IRBM is now trying to be more creative and innovative products in
the tax administration based on the exploration strategy blue
ocean

(blue

ocean

strategy) to

identify new

spaces

can

enlargement the tax base and reduce the tax leakages. This kind
of initiatives should be continued, including efforts to IRB
reviewing aspects of the tax legislation, not only locally, but also
internationally. The tax issues related to the transfer pricing or
transfer pricing should be be addressed with quickly and
effectively so that the result remains in the country, and at the
same time, does not burden the multinational companies with
operations in Malaysia.

3.3.1.3 The External Factor

Weaknesses
a) Building facilities and working environment
The existence of facilities can be evaluated based on the performance of
measurement which is a systematic process for measuring the efficiency
and effectiveness of and the system of administration. Ipoh Branch Wisma
results and has a good and clean environment. Good working relationship
and to provide a conducive a working environment make the atmosphere
36

[Type text]
cheerful and proactive work. However, the increase in number of persons
engaged increasing cause work space look smaller. In effect, the range
and narrow workspace can reduce the creativity and inspiration to the
workers.
b) The Company System Encounter problems
The efficiency of the working system that offered by IRBM is innovatively
increase the efficiency in working management. Today, IRBM has been
created several innovations in its administration system, including the STS
system to update the taxpayer data and to review some cases taxpayer
personal information. In fact the worker only uses this system without
need to find in files in store. But because of the abundant of entered
system make system failure to working or did not responding. Certainly
this problem will interfere with the smoothing of working and employer
time. Furthermore, this will take or cause any work or activities delayed.
c) The lack of provision for the human resources
As a measure to increase the capacity of the tax administrator of the
IRBM, their opens the opportunity to offer work in human resource and will
be announced in the official IRBM Malaysia Jobs. From year to year, the
additional files and summons were collected. As the result, in an
organization requires a lot of labour but funding for human resources is
less so that will give some brindle.
Top level findings show that HR and finance teams need to work closely
with one-another on HR policies to ensure better performance across the
entire business. Where the tone is set at the top, with HR Directors and
Finance

Directors

being

seen

to

liaise

on

bonus

schemes

and

37

[Type text]
benchmarking exercises, it is generally felt that a better working
relationship between HR and finance can be achieved.
Table 3.3.1.3: Internal Analysis
NO

INTERNAL FACTOR

WEIGTH

RATING

SCORE

STRENGHNESS
1.

Efficient and effective

management

0.25

1.00

2.

Excellent In customer secvices

0.25

1.00

3.

Clear vision, mission and culture

corporate

0.20

0.80

4.

Innovation

0.10

0.30

facilities and working

environment
Company System Encounter

0.10

0.30

0.05

0.10

The lack of provision for the

human resources

0.05

0.10

WEAKNESS
1.
2.
3.

TOTAL

1.00

3.60

3.3.1.4 Threats
a) The people that not paid taxation
Revenue collected is capable of providing the best infrastructure and
create a conducive atmosphere and very competitive business. More
investors will be interested to invest in Malaysia and create extensive
38

[Type text]
employment opportunities to the people. Success maintain sustainable
economic base definitely help the government to reduce the fiscal deficit
in the next state spending offered to the public. Tax purposes and different
types of tax imposed from one country to another and change over time.
At the beginning of human civilization, when the currency system has yet
to be introduced, the tax paid in the form of goods such as wheat, cattle,
cloth or labour services, for example to build roads. Tax system has long
existed in Malaya. In the reign of the Malacca Sultanate, taxes collected
from all ships passing through the Straits. Income tax system was first
introduced to the English colonists in the early 20th century for the
purpose of defraying the expenses of the war the British Empire but then
stopped after opposition of the people of the Straits Settlements (Penang,
Malacca and Singapore), at the time. When people do not pay taxes, the
effect is that an imbalance in wealth between communities. Fact will affect
the country's tax if the taxpayer did not contribute revenue to the country
and have an impact on the success of revenue management.

b) A fake information or information that didnt update

When public didnt give a very good cooperation to the IRBM
management in order to give an accurate information about their
background financial and family background, it will sometimes make a
mistake in making a calculation that will charge by the tax calculation.
39

[Type text]
It does also will affect the PCB system and will detect an error in paying
the tax. Sometimes its cost IRBM allots with many procedure that they
will take in action to get the information quickly before the deadline.
3.3.1.5 Opportunities
a) A great as its equivalent to the international tax administration
IRB

moving

with

flexibility

and

transparent

arrangement

in

administration aspect of the taxation and internal management taking

into consideration all of inputs and direction as well as the current
challenges to the tax administrator par with international tax moves IRB
flexibility and transparent arrangement in tax administration and
management aspects taking into consideration all of inputs and
direction as well as the current challenges to the level of tax
administrators in the international level tax administrator indeed actions
establish accurate IRB international system development and the
outcome was exemplified when the board is could increase amount of
direct tax collection.
b) As a top human resources
IRBM will be a top management that have biggest human resources
activities in future and management is always sensitive to the welfare of
its employees, provides career advancement opportunities for each
employee and recognizes individual excellence very officer is given
training and retraining either locally or abroad. In 2002, the LHDN
conducted 143 different courses within the country to:

Confirm appointments of service, and

Increase skill levels in selected areas of work.

c) A higher internet adoption

40

[Type text]
A large Internet Adoption provides an effective platform of marketing
professional workforce globally. The taxpayer confidence for electronic
services provided on the rise and service options continue to be
developed through the current needs. This will better facilitate its the
customers in using the services in tax payment system. In fact, it will
encourage customers to voluntarily pay taxes because of online
services faster, easier and time saving. As the result, the IRB will
develop long term public confidence through improving voluntary tax
compliance.
d) A collected revenue can provide a best infrastructure
Revenue collected can provide best infrastructure and create a
conducive business environment and competitive. Besides that, the
investors will be interest to invest in Malaysia and create extensive
employment opportunities to the public. The sucessesfull to maintain
sustainable economic base definitely help the government to reduce
the fiscal deficit in spending the next country offered to the public.

Table 3.3.1.4 : External Analysis

NO

EXETERNAL FACTOR

WEIGTH

RATING

SCORE

0.25

1.00

OPPORTUNITY
1.

international tax administration

41

[Type text]
2.

Human resources

0.20

0.80

3.

Good infrastructure

0.10

0.40

4.

High internet adoption

0.10

0.30

THREAT
1.

The people that not paid

0.25

1.00

2.

taxation
Fake information

0.10

0.20

TOTAL

1.00

3.70

As we can see the ,based on the both internal and external factor that i
have made ,the result that we can show is the analysis score is a internal
score and show a competitive which is 3.70 is higher than 3.60. We can
make a conclusion that IRBM have to give a focussing on which they
external factor to make their organization more successes in the future.
The treat and weakness that have been identify in this analysis can be
avoided by IRBM when they focussing on how to make their external factor
wisely.

3.4 THE RECOMMENDATION FOR FUTURE

Based on the result of the both analysis, we can conclude that there is
consist of some main aspect to give attention and the strategic
planning to be paln and to show the real ability of the IRB Ipoh branch
42

[Type text]
to overcome the problems and threat that have indentified. The main
aspect is consisting of:
1) The external strengthens that IRBM have is they have an
opportunity to be a tax a great tax administration in international
world .IRBM have a very commitment and great management
board. With upgrading the internal strength that their management
have a very excellent management board, also the worker have a
good discipline can help the organisation to achieve their goal more
easy to be in the same level as international stage.
2) Besides that, to overcome the main threat that for the taxpayer tax
that not compliant to pay the tax, IRBM should take a more certain
action. As we know, in LHDN have their own model strategy on
Compliant To tax .Which this is based on the overall rapproachment
due to the arising to the action rapproachment and the delivery of
services system. This is to add the group of the taxpayer that pay
tax and reduce the number for the fail or not pay the tax. IRBM
staff should more often refer to this strategy when the rising
problems regarding taxpayer is happen. Moreover, they also should
add some ICT in order to give a services delivering for more
entertains and understanding easy going about learning is happen.
Other than that, customer always find the easier way to make a
deal with IRBM regarding a taxation, than they must always make
an innovation to in their good services in online serves.
3) Increase the modal or provision for the Human Resources in order to
make many activities in order to increase many activities that will
make a various quality of training that will be implementing more
potential. Creative and innovative, the training scope will be
prepared according the scope of investigation, audit, management
43

[Type text]
and public relation. Moreover, this will make the IRBM as the best
services centre and give opportunities to a new graduate to take an
experience by offer a industrial training work.
4) Make a provision for build comfortable facilities to the worker by a
suitable space with a good work environment. Originally, IRBM Ipoh
has a very good environment quality for the worker but because of
large group of worker makes the space become small. IRBM also
makes buy another building to make its more comfortable with the
parking lots for the cars.

5)

Increase in Corporate responsibilities to the public these will active

shareowners who view the management of their investments as a catalyst to
promote justice and sustainability in the world. Furthermore will help to
encompass that desire, to commit being fully cognisant of the following the
privacy of clients, Security of goods and information , the social effect of
organisation,

environment

,business

ethics

,mutual

respect

between

ourselves, our private clients and our corporate clients, and the growing of
relationships with global partners.

3.5 Conclusion

Excellent achievements IRB the performance is accordance a

combination of implementation of strategies key success factors
which focuses on improvements in tax administration, human
44

[Type text]
capital

development

IRBM

based

on

competency

and

professionalism as well as ongoing efforts to create value-added

and

emphasized

innovation

in

implementing

information

management and delivery system. Additionally focus improvement

efforts and customer communications management, operation and
administration of the law of responsibility and appreciation of
positive corporate values include integrity and transparency factor
in its duty as the direct tax collection agent. In addition to exploring
new opportunities to improve the level of customer service, IRB
emphasizes the sharing of experiences and best practices in tax
administration and abroad. The strategies implemented by the IRB
in a holistic and rigorous appear to have an impact in terms of
improving the quality of services and products provided to the
community. IRB has been strengthened by the success of the
reaction innovative and creative in maintaining service performance
and

achievements

of

outstanding

revenue

for

national

development.

45

[Type text]

CHAPTER 4

INDUSTRIAL ANALYSIS
4.1 INTRODUCTION
This chapter will describe about the daily summary of the
performed conclusions. Trainees viewed the scope of this
industry has become one of most important industry that
contributes to the nation's income sources and

become the

main income generators of money to the country. This chapter

lists about things that have been learned from the first week
until the last week. There are many various exposures to real
industry knowledge.
4.2

THE DUTY PERFORMANCE OVERALL WEEK

4.2.1 Administration and Financial Units

(Week 1 till Week 3 ~ 24 June 2013 Till 12 July 2013)

1. Report and register at LHDNM, Ipoh branch.
2. Given a briefing and introduction to the company's background
and functions and employees
3. To record and update the company file.
Standing arrangement confidential files, and old files.
How to manage files confidential, restricted and confidential
files
Method of opening and closing files
4. Managing the company's general work, organizing and updating
the employees files and learn to use Photostat machine.

46

[Type text]
5. Write a letter to a vendors
updating the employees files and monthly salaries and
Photostat

document,

calculate

the

employees

monthly

salaries, to check and review back the overtime payment

claim statements of the employees that have been printed
for the month. Calculating the employee wages for overtime
payment work in accordance with a formula that has been
prepared using Microsoft Excel.
6. Separate invoices and bills to be paid by the company according
the company names
7. Learn and understand how the budget is planned and presented
in the company. to key in the data in the company information
system, and registering the company's inventory and assets
4.2.2 Mailing Units
1. Write a letter about the notification for transferring the files
companies to the other branches of IRBM in the given list.
2. Make a letter akuan terima and learn to understand about the
sale and purchase agreement of land.
3. Make a report book of services for the mailing delivering,
recording and register the new latter for the employees.
(WEEK 5 TILL week 6 15 Julai 2013 ~26 julai 2013)

4.2.3 Law Department

1. To enter data into "Pergerakan Fail Saman 2013, Pergerakan
Fail Jenayah and record the new files for Pergerakan Fail UUU
summons.
47

[Type text]
2. Being involved with Puan. Fauziah in the negotiation for the
taxpayers
3. Calculate the total cost of the action and wrote a summons
letters to the taxpayers
4. Write letters in a file lawsuit; including the writ of summons,
affidavit, the certificate absence of the judgment for the
taxpayers
5. Using the "Self Assessment System" and enter the details of The
Court and summons data for the company and not the company
for the taxpayers.
6. To write an income tax certificate for the taxpayer, a writ of
summons, and the absence of a certificate of judgment
7. Writing income tax certificate for the taxpayer, a writ of
summons, and the absence of a certificate of judgment
(WEEK 7 TILL week 8 5 August 2013 ~16 August 2013)
4.2.4 Administration and Financial Units
1. Given guidance administration and management of the
company file.
2. Standing arrangement confidential files, and old files.
3. How to manage files confidential, restricted and confidential
files
4. Method of opening and closing files
5. Record and update the company file.
6. Arrange and separate the punch cards for the original
overtime

payment

claim

statements

to

the

duplicate

statements

4.3

SUITABILITY OF TRAINING WITH FIELDS OF STUDY

Throughout the industrial training along these eight weeks in
IRBM Ipoh branch, I have been attach in three different units,
which in the first week we have been placed at admin which is
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Administration and Finance Unit . Then for the rest weeks, we are
given a duties to been attach among those three units which is
RPG, Admin, and law department.
As summarization, during the studying at collage and
class we are all focusing on the theory and its totally different to
the industrial training which in this moment we are being
introduce on how the really the working environment . Looking
throughout the duties and task given by the industrial supervisor,
the officer, and clerk officer, the suitability of the task given
between the field of the study in campus is make a calculation
about the employees salary with a suitable formula, balance
sheet in accounting principle also calculate the cost for the court
process in the law department. There is also learning about how
to make an organisation budget every year based on the budget
2013 by our industrial supervisor.
Other than that, during do a taxation work, I gain knowledge on
how to we can reduce our taxation paid by doing something like
paying a zakah, buying a computer; buying educational books we
can get a rebate tax.

4.4

Strength and weaknesses in Training

The course of assigned tasks and the job done, I have discovered
that there are some distinctive weaknesses and strengths of.
Then, I have kept the strengths and weaknesses of reference for

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me in the future. I have been analyzing each selective work to
give me a lesson for the future.
4.4.1 Strengths

As a summarization, during training at IRBM and to produce a

good services and job, I've been prepared myself by making a
reference by books, libraries and the internet and the IRBM
employees. Besides that, I also ask opinion and guidance from
workers, friends, and employees in the same place of industrial
training about work and environment.
In addition, to perform the job I always strive to do a good
job without being asked and help from colleagues and to get a
good assessment from supervisor. I also try to obey the rules of
workplace, the command work, attend work exactly on time set,
do the work and was told without question many ask computer
system also work procedures related companies.
Moreover, when getting work done, I will do without delay
and submitted at a accurate time given. Accordingly, the work
becomes more efficient without any outstanding features its
completely .Moreover, not work, the way to communicate with
fellow employees is very good indeed.
I also have done some observations from the way other
employees work, how to finish the job , so get indirect to able to
adapt the working environment.
4.4.2 Weaknesses

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There are some weaknesses from myself during industrial
training in the workplace which is during the process of
adaptation to the workplace and slow communication. This
happen because I need to learn and understand the culture of
the working environment in the IRB. If I adapt more quickly in
the cultural, it will make me encounter several problems and
stress.

Besides that, the time management between work assignments

and industrial training industrial training should be manage
wisely in order to get know the priority of the tasks that need to
be resolved first. When making an assignment under pressure
makes the work done not satisfactory. To produce good work I
take a positive attitude and arranging work schedules better.
Lastly, I also take time in understanding new tasks with
new concept assigned and caused me to repeatedly understand
the task. Therefore, sometimes the work done will be repeated
two or three times, and this give me a pressure in the workplace
because of that. But, this shortcoming has been in overcome
from time to time with the help of colleagues who are not tired
from giving an advice and guidance with a positive attitude to
learn from the mistakes that will not be repeat again.

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4.5

Encounter Problems
There are some problems that face during the industrial training

progress. Among the problems that encounter is:

1) Have to make a letter as to the of the application is been
accepted by the company and sometimes need to make a call to
the branch. Sometimes the branch doesnt know well about the
industrial student because the Admin centre in Kuala Lumpur was
make this decision and the branch just have to follow the order by
the Admin without know what actually they have to train for the
student.
2) Early in the training, there is some problems to adopt myself in
the working environment which is totally different from the
university environment.
3) As IRBM work frame are related with laws and confidential
information, so there is some restriction in our duty because not
at all unit we can attach there because some of the information
cannot be seen as their work frame in taxation academy.
4) To finish this final report we have to actively find the place for the
curve biding guidelines .But there no company that offer this
types of biding. So have to go to other place to get these services
ask my friends to help to makes a biding report near their place.

4.6

Conclusion
Through of this industry training program, the trainees are exposed
many tax components in Malaysia. The development of a package

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can achieve successful can be happened only in collaboration with
all the parties and careful planning and well. Trainee felt that the
coordination between all of parties, including taxpayers not directly
tax in of this sector is very important for generating revenue

After of this training, the trainee feels better understand the

roles played by IRBM and the units that work actively under this
branch. With that, the intern will be clear about the career field of
interest and can make plans to venture into after graduation.

CHAPTER 5

CONCLUSION

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5.1

INTRODUCTION

Industry training is one of the key modules compulsory for all students
in Malaysia to meet the the certification requirements. Students will
undergo industrial training either in public or private sector. During the
students undergoing industrial training, students will be under the
supervision of a supervisor appointed by the Industrial Student
Relation Training Unit (The purpose is to provide opportunities for
students to gain exposure to the community early and familiarize
yourself with the real world of work especially with respect to the
application of knowledge learned in college, human relations, ethics
and safety practices in the workplace.
5.2

THE PERSONAL OPINION ABOUT IRBM

The Inland Revenue Board of Malaysia (IRBM) was established by

the government when the Income tax start been introduced in the
Malaya Federal on 1 January 1948 with enforcement of Income Tax
Ordinance 1947. In the year 1967, the ordinance has been merged
with the Sabah Income Tax Ordinances 1956 and the Sarawak
Income Tax Ordinances 1960 become Income Tax Act 1967 which
has been enforced on the first January 1968.
Meanwhile for this branch On 1 September 1951,
after the establishment Kuala Lumpur branch, Pulau Pinang and
Malacca, the Ipoh Branch has been established. At this moment, in
the whole state include Perak, Cameron Highland and Pahang is
under the administration of Ipoh branch. After that, the district
administration has been made in 1953 which the first office of Ipoh
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branch is located at the level 1 , Chua Cheng Bok building ,94
Brewster Road, which also known as Jalan Sultan Idris Shah.
As overall observation ,IRBM Ipoh always be one step
ahead and make an innovation continuously that why they are
qualified to be approve as a world class tax services. IRBM was
practising an innovation culture that based on integrity and ethics
since the strong value of integrity will give benefit the organization.
IRBM continuously makes an improvement and innovation in the
development of electronic services network to offer to the
customers.
These measures are including stern action against errant
tax-evaders as well as those with outstanding taxes. In addition,
business survey operations to identify new taxpayers and audits
were carried out to help further improve collection. The LHDN also
implemented educational programs to enlighten and improve
compliance of taxpayers in declaring voluntarily and accurately in
accordance with the stipulated laws and regulations.
The second year in which corporate income tax was
collected under the Self Assessment System (STS) the performance
in corporate income tax collection was most encouraging. Current
work to develop the STS for non-corporate taxpayers shall continue
to be carried out in 2004 and will focus on the education of
taxpayers on self-reporting, self-calculating and self-paying the
appropriate

amount

of

tax

and

the

development

of

the

management system, as well as work procedures and processes.

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Lastly, The IRBM is committed to efficiently and effectively
administration with a excellent leader Ipoh branch in a leadership
skill makes the organisation achieve the collection target without
burdening the worker with a pressure in order to achieve the
company mission and objective. Besides that, their main director of
organisation has a very good quality in leadership, dynamics and
also very dedicates personalities.
5.3

SUGGESTION AND RECOMMENDATION

Industrial practical actually have give a positive impact to the
student to increase their work performance. Student can get the
real situation in work and the real operation , education,
development and work management at the workplace .Other
than that, they also will get a knowledge in every matter such as
how to solve a problem, how to contribute an idea, how to work
as a team work, and discipline and others. Besides that, this
program also can produce a very excellent gradates and always
open minded, innovation, good in communication and also
competitive.
Experience is very essential for every student to practice the
knowledge that has been taught. My suggestion is that the
company should emphasize the question of learning during the
training industry. Behalf of that, the firm should cares about the
safety

and

computing

environments

such

as

systems

development, maintenance, research, development and so on.

Students are not supposed to do clerical work, such as typing
and make a copy of the notes, tidy office and involving work has

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nothing to do with learning. Behalf of the firm should also look
have the cost of living during training the students as the cost of
living is very high at present not only for employees. Besides
that the firm must also emphasize the safety for the students
undergoing training. The main reason is because we do not know
the risk that will come that will come during the industrial
training.
I recommend for the further accelerate IRBM service quality,
the reliability data management system should be more efficient
technology used and

should be established in line with the

currently developed as the system that can store a thousand

details of documents of members than use a manual method.
For this situation, IRBM Ipoh branch should always observed to
and focuses for the system have failed temporary in operation.
If each branch of IRBM office has their own technician which
serves as improve the quality of the database system in line with
the latest technology, this can expedite and repair of damaged
components of a computer and do not have to wait the other
services and certainly requiring a high costs and time.

5.4

Overall Summarization
For overall conclusion, IRB Ipoh branch is a company with high
competitiveness, and has its own advantages. Service provided
emphasizing the excellence of civil servants and make IRBM as a
premier organization of tax in respect of all groups and
communities. Furthermore, the IRB Ipoh Branch was awarded the
Certificate of Registration of Quality System ISO 9000 in the

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Malaysian Civil Service RPGT and stamp duty assessment was
presented by the Chief Secretary to the Y. Pts. Tan Sri Abdul
Halim bin Ali.
Besides that, a communication and good personality makes
a student more confidence and courage to solve the tasks given by
the organization .The cooperation

IRBM Ipoh branch has helped

students in facing industrial training during the training period.

Good mental strength also helps in overcoming problems such as
nervousness and loss of speech when talking with customers.
Therefore, the industry has trained students training to be a good
employee in the future. By the guidance of the professional officer
in IRBM Ipoh branch has improve the quality of the student itself.
In addition, training is one of the methods undertaken to
produce students with competitive and innovative in their careers,
and practice the knowledge acquired during their stay in the school.
Given the experience is very important in a person, then as
an obligatory program for students who want to finish their courses
either at the certificate, diploma or bachelor's degree.

REFERRENCES

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Lembaga Hasil Dalam Negeri Malaysia . (2009). Retrieved 17/8/2013
August, 2013, from Official Inland Revenue Board Malaysia:
http://www.hasil.gov.my
Lembaga Hasil Dalam Negeri Malaysia. (2007). Annual Report 2007. Kuala
Lumpur: Perpustakaan Negara.
Lembaga Hasil Dalam Negeri Malaysia. (2008). Annual Report 2008 Kuala
Lumpur: Perpustakaan Negara.
Lembaga Hasil Dalam Negeri Malaysia. (2009). Annual Report 2009. Kuala
Lumpur: Perpustakaan Negara Malaysia.
Lembaga Hasil Dalam Negeri Malaysia. (2010). Annual Report 2011. Kuala
Lumpur: Perpustakaan Negara.
Lembaga Hasil Dalam Negeri Malaysia. (2011). Annual Report 2011. Kuala
Lumpur: Perpustakaan Negara.
Lembaga Hasil Dalam Negeri Malaysia. (2012). PELAN KORPORAT LHDNM
2012-2015. Lembaga Hasil Dalam Negeri Malaysia.

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ATTACHMENT A

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ATTACHMENT B

Punch Card for industrial training

Family Days In IRBM yearly

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The Environment of the Workplace

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ATTACHMENT C

IRBM Official website

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