Individual Assignment Guideline and Format Type of assignment: 1. Comparative and case analysis 2. Headings/subheadings are allowed. Unit learning outcomes assessed: LO 1Describe the taxation concept...

Comparative Analysis of Tax Systems of both the countries
Malaysian Taxation administration overview:
Income during the tax period is estimated based on the current year. The company levies taxes on income from all sources (commercial or non-commercial) in the fiscal year ending in the calendar year that coincides with that particular valuation year. Companies that close their accounts on June 30 each year will be taxed on profits for the fiscal year ending June 30, 2020, in the 2020 estimated year. According to the self-assessment system, the company must submit a profit and loss statement. Within seven months from the date of account closure. The detailed information that must be included in the return includes the taxable income and taxes that the company will pay.
Paying Taxes.
When submitting the tax return, the tax payable based on the tax assessment must be paid by the last day of the seventh month from the date the account is closed. The company must submit an estimate of the tax payable in the assessment year at least 30 days before the start of the base period (usually the fiscal year). However, a start-up company with certain conditions and registered capital of less than RM2.5 million can be exempted from this requirement within one year. Evaluation of the start of the company's work. Revised estimates can be submitted in the sixth and ninth months of the base period of the assessment year. Starting from the second month of the company's base period, the company must pay taxes every month (according to the estimated value provided).
These tax audit principles describe the rights and obligations of auditors, taxpayers, and tax consultants related to tax audits. Depending on the purpose of the audit, the tax audit can last from one to three years [footnoteRef:2] However, based on the problems found in the audit, the assessment that will be included in the tax audit can be expanded. [2: Kholbadalov, U. 2012]
Accuracy of tax incentives.
Oil income tax. Petroleum business income in Malaysia is subject to a 38% oil income tax. The effective oil tax rate of 25% applies to oil operating income in the surrounding area. Regarding local income in Malaysia, state or provincial income tax. If a company is managed and controlled in Malaysia at any time during the base year, the company will reside in Malaysia for tax purposes during the base year (usually the fiscal year). Generally speaking, if at least one board meeting on the management and control of the company is held in Malaysia at any time during the base period of the assessment year, the company will be considered a resident of Malaysia. Permanent establishment (PE) [footnoteRef:3]. According to the tax treaty signed between Malaysia and the contractor, a non-resident of a contractor who obtains a commercial benefit from Malaysia should generally only pay Malaysian income tax if the non-resident has a sole proprietorship in Malaysia. It is based on the provisions of tax treaties. Generally, if a non-resident organization has a permanent place of business in Malaysia where the company is located, the organization is regarded as a sole proprietorship in Malaysia under tax treaties. In some cases, a non-resident company can also be considered a sole proprietorship in Malaysia. [3: Income Tax Act 1967 (Malaysia)]
Australian Taxation Administration Overview:
Tax period The Australian tax year is July 1 to June 30; however, companies can apply to accept alternative income years, such as from January 1 to December 31.
Paying Taxes:
Submit tax returns based on the self-assessment system, which allows ATOs to rely on the information contained in the tax return. Generally, the corporate income tax return must be submitted to the ATO before the 15th day of the seventh month after the end of the relevant income year or on a later date allowed by the tax commissioner. The tax-paying hire purchase scheme applies to companies that have an annual tax amount of less than A$8,000 and are not registered for goods and services tax. The actual ordinary income of the company in the previous quarter (after deductions). The ATO will notify the taxpayer of the installment payment and determine the installment payment based on the latest estimated tax payable[footnoteRef:4]. The sixth month after the end of the tax year, or the later date allowed in the notice issued by the tax commissioner. [4: Income Tax Assessment Act 1936 (Australia)]
Tax audit procedures.
However, the ATO will carry out ongoing compliance activities to ensure that the company fulfills its tax obligations[footnoteRef:5]. The ATO adopts a risk-based approach to compliance and audit activities, usually focusing on taxpayers who are more likely to violate and/or cause more serious consequences. (Usually expressed in U.S. dollars) is the default value.There are many forms of compliance measures, including risk summaries, questionnaires, summaries of specific issues, and audits. Limitation regulations The change period for some small businesses is two years. Beginning on June 29, 2013, the valuation review for the use of transfer pricing adjustments has been changed to a seven-year review period to evaluate the valuation for that fiscal year. The tax authority’s ATO’s top 1,000 plan aims to obtain more evidence to help ensure that the 1,000 largest listed companies and multinational companies declare the correct income tax and goods and services tax in Australia. The program supports and expands ATO's existing compliance methods.As part of this plan, the ATO team uses customized compliance methods to interact with each taxpayer to ensure that they report the correct income tax amount or determine tax risk areas for future use. ATO will regularly publish compliance articles to get your attention[footnoteRef:6].  Consumption tax and real estate, international affairs, and finance. do business. Share data and insights on risks and opportunities with other jurisdictions, share opportunities and strategies, and common compliance measures. Australian Research and Development Tax Credit Company.Taylor, Grantley, and Grant Richardson. (2012): [5: Woellner, Robin H 2010] [6: Woellner, Robin H, 2010]
Statement of Tax Records
All companiesapplying for a new Commonwealth PublicProcurementAgreement with a...