Exposing students to opportunities in taxation

Low (top left), Chong (bottom left) and Woo (far right) during the webinar

The Chartered Tax Institute of Malaysia (CTIM) held a webinar on tax education career talk for more than 150 UTAR Accounting and Economics undergraduate students as well as lecturers on 4 November 2020 via Microsoft Teams.

Speaking at the webinar were CTIM Chairman of the Education Committee-cum-Deloitte Tax Services Sdn Bhd Executive Director Stefanie Low, CTIM Chairman of the Examinations Committee-cum-Crowe KL Tax Sdn Bhd Executive Director Chong Mun Yew and Member of the Education Committee-cum-Grant Thorton Malaysia Executive Director Daniel Woo.

In “Taxation as a Career”, Low spoke about the basic concept of taxation, types of taxes, the differences between tax planning, tax avoidance and tax evasion, compliance under the self-assessment system in Malaysia and the overview of CTIM as well as its activities to support the profession in taxation.

“Taxation is an income to the government. The taxes collected allow for redistribution of wealth in different areas such as welfare, education, defence, transport, infrastructure and others. Tax is a financial charge exacted under the legislative authority and failure to pay is punishable by law. Indirect tax is known as consumption tax whereby in Malaysia, we have sales tax and service tax. Direct tax involves around income tax, real property gains tax and stamp duty. Taxpayers are allowed to plan their transactions in a legal manner to find the best outcome for themselves,” said Low.

Low sharing the self-assessment system in Malaysia

She added, “When you consider taxation as a career, bear in mind, taxation is not something you do in isolation. To be an effective tax professional, you will need to understand the transaction or the business itself. Apart from that, it is also important to understand the mechanic of income and expenses before applying the tax law to the situation. At the same time, you will also develop critical thinking skills by doing taxation. Some of the areas of opportunities in taxation are such as tax advisory, transfer pricing, global employer services, international tax, tax audit and investigation, indirect tax and incentives.”

Chong explained the CTIM qualification and exam whereby CITM conducts professional taxation examination in Malaysia and it is held bi-annually in June and December. In his session, he spoke about the intermediate papers, final papers and the paper exemptions. He said, “The intermediate papers are such as personal taxation, economics, financial accounting, business taxation while the final papers are revenue law, company and business law, advance taxation. The scope we cover is wider so that you have a strong foundation in theory.”

Chong explaining the exemption of papers according to the qualifications

Meanwhile, Woo who shared his 20 years of experience in tax profession said, “Generally, the qualifications to embark in tax is to have a bachelor degree in either business, finance, economics or law. However, a non-financial degree is also possible if you have an interest in tax. Tax profession is a rewarding and fulfilling career if you have a passion for it. It is important to have a strong foundation in tax compliance to build a successful career.”

“Ranks vary depending on the accounting firm that you are joining. Larger firms tend to have more levels compared to mid-size firms. Most importantly, you have to be hardworking, willing to learn and apply your tax knowledge to your work, it won’t take long to become a manager in about four to five years. Do act in your clients’ best interest by applying the right tax principles and law while avoiding to be in a position that may create a conflict of interest. Bring tax reforms to the country’s tax system by contributing your tax knowledge, experience with your peers, business community and to the tax authorities,” he said while explaining the progression in the tax profession.

The webinar was followed by a Q&A session among participants and the speakers.