Inland Revenue Board Malaysia

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Presented By
TAN SRI DATO ZAINOL ABIDIN ABD. RASHID CHIEF EXECUTIVE OFFICER INLAND REVENUE BOARD MALAYSIA
An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

1. ETHICS
Standards of right and wrong, good and bad Two aspects to ethics
-

Able to determine what is right or wrong, good or bad

Committing to doing what is right and good
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

Committing to doing what is right and good means : Doing ethical actions

Doing what is right and good

Avoiding what is wrong or bad Walk the talk

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

2. ETHICS versus VALUES

ETHICS A subset of values concerned with decisions about right and wrong

VALUES - Include other beliefs and attitudes that guide behaviour

e.g. : prosperity, happiness, respect, satisfaction etc.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

3.

BASIC ETHICAL PRINCIPLES GUIDE DEVELOPMENT OF STANDARDS

ORGANIZATIONAL ETHICS

PROFESSIONAL CODES OF ETHICS

BUSINESS ETHICS
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

ORGANIZATIONAL ETHICS
Serve as guidelines in the conduct of duties for employees in organizations Adherence to principles of honesty, competency, trustworthiness, truthfulness, transparency, accountability, justice etc.
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

PROFESSIONAL CODES OF ETHICS Govern conduct of members of a given profession BUSINESS ETHICS Deal with questions whether specific business practices acceptable

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

4. INTEGRITY

Quality of excellence manifested in a holistic and integrated manner in individuals and organizations Based on ethics and noble values
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

INTEGRITY IN

INDIVIDUALS ORGANISATIONS PUBLIC OFFICIAL

contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

Inland Revenue Board Malaysia

INDIVIDUAL
Harmony between what an individual says and does

Act in accordance with moral and ethical principles, laws and regulations

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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ORGANIZATIONS
Formulate and implement :
Code of Ethics Clients Charter Systems or work procedures Comply with best practices

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

PUBLIC OFFICIAL
Carry out the trust and responsibilities in line with public interest Avoid abuse of power No conflict of interest Accountable, transparent, sincere etc.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

DETERIORATION OF INTEGRITY
INDIVIDUAL LEADERSHIP SYSTEMS & PROCEDURES STRUCTURE AND INSTITUTION CULTURE

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

INDIVIDUAL
Individual weaknesses: - low education and poor values - poor work ethics - greed Life demands

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

LEADERSHIP
Non exemplary leadership and low commitment

Do not walk the talk promises

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

SYSTEMS & PROCEDURES

Low transparency Weak system and procedures Ineffective enforcement Selective enforcement Poor monitoring Limited resources Outdated laws and conflict in laws
An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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STRUCTURE AND INSTITUTION

STRUCTURE
Structure not suitable and not focused Targets not clear and unreasonable Structure outdated and not addressing new demands and challenges
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

INSTITUTION
Overlapping of scope, functions and responsibilities Low coordination Conflict in objectives between institutions resulting in conflict of values and crisis

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

CULTURE
Culture that does not give importance to integrity - fear of consequences of lodging reports

- indifferent attitude
- refusal to act as whistleblower - the yes-man attitude and apple-polishing syndrome

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

5. ETHICAL DILEMMAS
Examples :
Personal interest in conflict with public duty Negligent Accepting gifts and invitations
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

Meals and drinks offered Not observing confidentiality

Misuse governments assets

Corruption

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

REASONS
- Financial distress - Social accepted standards and values - Given opportunities
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

CONSEQUENCES Rampant corrupt practices leading to :

- Economic and social decline

- Less tax revenues

- Low compliance

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

6. ENSURING INTEGRITY
INTEGRITY POLICY / FRAMEWORK
Code of Ethics Organization structure Systems and procedures Continuous ethical training Human Resource policies
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

Internal auditing and inspection Sanctioning systems Integrity Counsellors Booklet on Integrity

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Inland Revenue Board Malaysia

7. CONCLUSION
Ethics and integrity in place in organizations and individual Practice ethical behaviour Awareness and real time detection key to good organizational ethics Programmes to fight corruption and other irregularities not a fad or episode
contd.

An Overview On Practical Approaches Towards Ensuring Integrity In Tax Administration

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Inland Revenue Board Malaysia

INTEGRITY QUOTES : Integrity is incorruptibility incapable of being false to a trust, responsibility or pledge Integrity is doing right when no one is looking The test of integrity is in the opportunity Integrity is credibility, you lose integrity, you lose credibility

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Inland Revenue Board Malaysia

THANK YOU

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