By the Digital Economy, Reporting and Risk Team
The MIA Digital Economy and Reporting Insights provides quarterly updates on the key areas of digital economy, tax and reporting. The Insights highlight contents and initiatives that are of high value to members.
Digital Transformation in Small and Medium Practices
As part of its continuing efforts in supporting the small and medium practices (SMPs) to transform their practices, the Institute organised a webinar titled ‘Leading a Digital Transformation Journey in Your Practice’ on 20 October 2022. The webinar kicked off with an overview of MIA digital initiatives by Rasmimi Ramli, Executive Director of MIA Digital Economy, Reporting and Risk Division. This was followed by a presentation on an overview of the Digital Competency Maturity Model (DCMM) tool by Martin de Bie, Chair of EFAA’s Digital Working Group, European Federation of Accountants and Auditors for SMEs (EFAA). Martin de Bie also provided step-by-step guidance on using the tool. The webinar ended with a sharing of a digital transformation journey by Jeremy Chia, Managing Partner & Co-Founder, Chia, Ka & Partners PLT. More than 500 MIA members attended the webinar where 250 of them have used the tool and assessed their digital competency. For more details on the tool, go to https://efaa.com/projects/dcmm-supporting-digitalisation/.
Accountants Combating Cybersecurity Challenges
Accountants hold the keys to confidential information such as sensitive financial and high-value commercial data, which is gold to cybercriminals. Watch this video to find out more about the critical cybersecurity risks that plague organisations today and directly affect the profession as financial stewards and gatekeepers, including lessons learnt from high-profile cybersecurity failures.
As guardians of high-value financial and commercial data, accountants play a critical role in their organisations in strengthening cybersecurity. Watch this video to see how accountants at all levels including Board members and C-Suite executives can champion good governance by boosting cybersecurity defences to outwit cybercriminals.
Let’s Champion Tax Governance
As an effort to drive ESG practice in the accounting profession, a Virtual CFO Event titled Let’s Champion Tax Governance was held on 23 November 2022. Dr Veerinderjeet Singh, member of MIA Taxation Practice Committee spoke on the following:
- Corporate governance and global developments on tax governance
- Knowing your organisation’s tax risk and its impact
- Tax transparency disclosure
- Role of audit committees and chief financial officers
- Developing a tax governance framework
In November 2021, the Institute and the Malaysian Institute of Certified Public Accountants jointly published the Tax Governance Guide as part of the accountancy profession’s advocacy for tax transparency and good reporting practices amongst listed issuers. The Inland Revenue Board (IRB) published the Tax Governance Framework (TCFG) in April 2022 which establishes the techniques and processes within an organisation to identify and assess tax risks. It also sets out appropriate actions to mitigate the impact of those tax risks. An effective tax corporate governance framework can cultivate a level of confidence that the organisation is reporting and paying the right amount of tax, enabling organisations to achieve greater certainty in relation to their tax affairs. Detailed information on TCGF can be found here.
Proposals on sales and services tax policy
In November 2022, the Institute submitted the following proposals in relation to sales and services tax policy issues:
Tax exemption for foreign sourced income
In January 2023, the Institute jointly submitted the Joint Memorandum for Tax Treatment on Income Received in Malaysia from Outside Malaysia to the IRB. The Joint Memorandum sets out comments/feedback pertaining to the tax exemption for foreign sourced income as gazetted under the following statutory orders dated 19 July 2022:
- Income Tax Exemption (No 5) Order 2022 [P.U.(A) 234/2022]
- Income Tax Exemption (No 6) Order 2022 [P.U.(A) 235/2022]
Accounting for Natural Resources
The International Public Sector Accounting Standards Board (IPSASB) issued a Consultation Paper, Natural Resources in October 2022. This Consultation Paper is the IPSASB’s first step in developing guidance on the recognition, measurement, presentation, and disclosure of natural resources in the public sector. MIA has submitted comments to the Consultation Paper on 17 October 2022 which can be accessed at https://mia.org.my/consultation-paper-natural-resources/.
Studies Commissioned by the Institute and MAREF
MIA and the Malaysian Accountancy Research and Education Foundation (MAREF) have carried out a research programme to steer the commissioning of priority research topics (PRT) that are funded by MAREF Research Grants. The main objectives of MAREF are the promotion, encouragement and advancement of accountancy research and education which are in line with MIA’s advocacy activities to promote the future relevance of the accountancy profession.
The PRT 2.0 programme has ended where four studies have been completed as follows:
The short research reports (SRR) of these studies are available for purchase from the MIA e-library at https://eknowledge.mia.org.my/mia/purchase.html. All receipts from the purchase go to MAREF.
MAREF Priority Research Topics 3.0 – Call for Proposals
In December 2022, MAREF invited submission of research proposals on Priority Research Topics 3.0 (PRT 3.0). The deadline for submission is 31 January 2023. For more details, please read Circular No 65.