By the MIA Digital Economy, Reporting & Risk Team
The MIA Digital Economy and Reporting Insight provides quarterly updates on the areas of digital economy, tax and reporting. The Insight highlights high-value contents and initiatives that members can adopt to help drive transformation and future sustainability.
Leading a Digital Transformation Journey in Your Practice
Following the issuance of the European Federation of Accountants and Auditors for SMEs (EFAA) Digital Competency Maturity Model (DCMM) to members in March 2021, MIA organised a webinar titled ‘Leading a Digital Transformation Journey in Your Practice for the SMPs’ on 22 July 2021. Paul Thompson – Director of EFAA introduced DCMM which enables SMPs to determine their level of maturity on digital competency. This was followed by a panel discussion moderated by Lim Fen Nee – Chair, Digital Technology Implementation Committee, MIA and joined by Paul Thompson, Dato’ Lock Peng Kuan – Managing Partner, Audit and Assurance, Baker Tilly Malaysia and Mahathir Mahzan – Member, MIA DTIC Public Practice Working Group. You can read about the highlights of the webinar HERE.
The DCMM can be accessed HERE.
Data Governance: Why SMEs Should Put in The Effort
With the exponential growth of technology, data has become an increasingly valuable asset which will greatly benefit an organisation’s operations and decision-making. This video explains why SMEs (including SMPs) should not underestimate the importance of data governance and how it will help transform their business.
KHR: An MIA Case Study on Digital Transformation
Many SMPs would benefit from experience shared by others in understanding what they need to do in their digital transformation journey. This video spotlights KHR and how they went about adopting technology to ensure that they would remain relevant in today’s competitive world. The video also relates KHR’s actions back to the five principles espoused in the MIA Digital Technology Blueprint.
Two digital grants were shared with members which are the new round of the Selangor SME Digitalisation Matching Grant and Smart Automation Grant. For details, please refer to Circular No 73/2021 and Circular No 87/2021. The Selangor Grant is still open for application until 12 noon on 31 October 2021.
New Digital Economy Page
The new Digital Economy page serves as a one-stop centre for all the digital economy initiatives and resources of MIA. The new page includes various digital competency assessment tools, guidance, publications and contents on digital technology and its adoption, capacity building as well as the funding available for digital technology adoption. The page can be accessed HERE. For any enquiries on digital economy matters, please drop an email to [email protected].
During the quarter, MIA submitted the following to the tax authorities:
- Joint MIA-MICPA Memorandum for Budget 2022 Consultation which sets out 65 proposals focusing on fairness and a broader revenue base, incentives for economic development, continuous improvement and efficiency, and enhancing wellbeing of the ‘rakyat’.
- Joint MIA-CTIM-MICPA comments on Draft Guidelines on Income Tax Treatment of Hybrid Instruments. MIA welcomes such an initiative. In the comments, MIA highlighted that there may be a need for a public ruling on the tax treatment of such instruments and elements of double taxation and mismatch should be avoided.
- New issues arising from the Customs policies for discussion during the Customs-Private Sector Consultative Panel Meeting No 2/2021 where five issues were highlighted to the Customs mainly on review, dispute and appeal processes as well as the process to refund indirect taxes and costs due to order of the Customs Appeal Tribunal/courts.
- Joint MIA-MICPA comments to the MOF’s Public Consultation Paper – Study of Tax Incentives for 2022 Budget Consultation which incorporates the Institute’s views on improving investment legislation to be investor-friendly in order to attract strategic investments to Malaysia.
- Joint MIA-MICPA appeal for further extension of time (EOT) to submit Income Tax Return Forms (ITRFs) in support of MIA members who are tax practitioners facing challenges in obtaining requisite information from their clients for preparation of income tax computations and completion of ITRFs due to the prolonged COVID-19 pandemic. Following the appeal, the Inland Revenue Board informed MIA on relaxation of tax compliance and operational matters during the National Recovery Plan. For more details, please refer to Circular No 82/2021 and Circular No 86/2021.
Members who are tax practitioners can obtain tax updates and developments at the following links:
- Gazetted Act, Subsidiary Legislations and Federal Constitution
- Tax updates and developments issued and published by the IRB:
- Latest announcements by the Customs
A Guide to Understanding Annual Reports: Malaysian Listed Companies
The Guide offers a roadmap of common content in annual reports which will assist in deciphering the content and structure of annual reports to guide decision-making. Similar guidance was issued in 2014. This second edition of the Guide has been updated to include non-financial reporting developments such as the Malaysian Code of Corporate Governance 2021 and Integrated Reporting; the Companies Act 2016; auditor reporting developments; as well as an enhanced guide on the approach to reading financial statements. The Guide is also accompanied by the Guide to Understanding Auditing and Assurance: Malaysian Listed Companies. A webinar on both Guides was held on 27 August 2021. CLICK HERE for the press release on the issuance of the Guides.
The publications can be accessed at:
MIA offers in-house training programmes which can be tailored to an organisation’s learning objectives. An extensive selection of topics from MIA public programmes can be adapted including digital technology such as data analytics, integrated reporting, financial reporting standards and taxation, among others. In addition, new topics can be explored utilising our wide range of experienced trainers.
Customised training programmes are designed to focus on the need of the organisations. Quizzes and assessments can be arranged by our experienced trainers for the programmes to be interactive. For more information, email us at [email protected].