Definitions of Self Assessment System - Taxation Case

1.0 Definitions of Self Assessment System (SAS)

SAS has been implemented in the year of assessment of YA 2001 for companies while for individuals, partnership and co operations in YA 2004. SAS is exclusive and complicated, making it difficult to figure out. Basically, SAS is computer software for working with information’s. Or, SAS is a computerized integrated system of program launched by SAS Institute Inc. for acquiring, managing, analyzing, and verifying data (Aster, 2006).

Other definitions based on:-

Software

SAS is computer software, the difference between software and hardware. Computer hardware is the electronics of a program. It’s what you see when you see a computer, or what you can feel and touch. Computer software is an application or programming that tells the computer what to do. It manages what you see on the screen and also what goes on behind the screen to keep a pc running. It takes a combination of application and components for a program to take any action. (Aster, 2006).

SAS is integrated system of applications which allows you to execute the following tasks such as information accessibility, restoration, and management; graphics design and report writing; statistical and mathematical analysis; business prediction and decision support; operations research and project management and applications improvement.

1.1 How might the SAS WORKS?

As for Malaysia, the objective of SAS set by the Government is to accumulate taxation for the country at the tiniest price, to boost submission, and to organization efficient enforcement. (Kasipillai, 2000; IRB Annual Report, 2001; Loo, 2006). In order to achieve the mission, a threefold purpose was established :- (1) to assess and collect the right quantity of earnings as provided under the law in the very best way and at a smallest cost. (2) To instill public confidence in the fairness and integrity of the tax system; and (3) to encourage voluntary compliance.

Under the self assessment system, the headache of handling the taxpayer’s liability is shifted from the Inland Revenue Board (IRB) to the tax payer and accordingly, people are needed to calculate their tax liability depending on the tax rules, suggestions and rulings from the IRB. The tax earnings submitted will no more be subjected to a particular assessment by the IRB.

Diagram 1 shows a higher stage of SAS processing using a DATA step and a PROC step. The diagram focuses mainly on the DATA step.

1.2 Comparison with Official Assessment System (OAS)

OAS Differences SAS

Traditional system Type of system Modernized system

 Submit