The acceptance of tax agents towards the special voluntary disclosure program (SVDP)

Tax agents, together with taxpayers and tax authorities, are key players in the system of tax compliance. Tax agents' functions are becoming increasingly difficult with changes in the tax environment, such as the introduction of self-assessment systems (SAS) that sought more responsibility to taxpayers to meet their tax obligations and rely on tax agents as mediators in complying with tax law.
As previous Ministry of Finance announced on 3 November 2018 the implementation of the Special Voluntary Disclosure Program (SVDP) which runs from 3 November 2018 until 30 September 2019, the initiatives becoming the major concerns by IRBMM. The initiative sought to provide taxpayers with the ability to self-correct their
prior under-reported and undeclared income and provide a lower penalty rate of 10%- 15% compared to a higher penalty of 45%-300% upon expiry of the program. Nevertheless, although similar voluntary program has previously been introduced in 2015 and 2016, there is a lack of studies ever aimed at assessing the program's efficacy
or even exploring tax agents' acceptance of the VD program. Therefore, this study was carried out to examine the acceptance of tax agents towards the SVDP. The variables of awareness, attitude and enforcement were using in this study and mix method approach had been conducted. The interview session was conducted through telephone and 8 of the respondents involved. While for the secondary data that becomes the supporting information to the interview results gained from IRBMM’s unpublished report. Results of this study concluded that tax agents are aware about the program and have
a good attitude towards the implementation of SVDP, but at the same time the enforcement aspect of IRBMM or the government of Malaysia must be enforced in order to assess the compliance conduct or acceptance of the tax agent towards the SVDP. The findings of this study provide exposure, understanding and addition to the body of knowledge of the program. More importantly it helps IRBM, academician and tax agents to improve and supports the implementation of tax compliance strategies in Malaysia in the future.