E-commerce Implications Potential Problems and Challenges in Malaysia

• DOI: 10.5539/ibr.v1n1p43
• Publication Date: 2014-05-16T00:32:28Z
• Authors: Hajah Mustafa Moh...; Haslinda Hassan; Zaleha Othman

E-commerce transaction has grown immensely. It has directly or indirectly imposed a number of challenges to the governmentadministration particularly to the tax system. There are mix views to the implication of e-commerce. Some opine that ecommerceimproves tax system, while others belief that tax system was designed in the era where e-commerce does not exist,thus, creating problems to the tax system. This study, therefore, investigates the tax problems posed by e-commerce andsolicit opinions from various parties on problems faced in taxing e-commerce.The findings reveal that tax administration was ranked as the highest potential tax problem, followed by tax evasion, doubletaxation, tax avoidance, and tax free. In addition, there is no significant difference in the subjects’ attitudes towards ecommerceand internet tax. Overall results show that subjects perceive e-commerce as creating tax problems, however, theirviews do not differ on tax liability from physically or electronically oriented commercial environment.