Enforcement on land tax arrears in Malaysia: a framework based on National Land Code 1965

Abstract

Tax enforcement is needed in the form of negative incentives such as sanctions, penalties, and property forfeiture to deter non-compliance on the property tax payment conduct by the taxpayers. To implement such legal actions and proceedings effectively, it is crucial for the tax authority to have a complete set of the process flow of the enforcement as part of the enforcement framework to ensure the law is enforced with utmost fair manner. Thus, this article aims to establish a comprehensive enforcement workflow of land tax arrears in Malaysia based on the legislations provided in the National Land Code 1965. This is done by carrying out a content analysis of the legislation in force in the National Land Codes 1965, which regulates the enforcement actions by the Land Administrators and State Authorities on the land tax arrears. The authors have performed the validation of the workflow by conducting semi-structured interviews with land matter experts from at the federal level and Land Administrator (state level). This article will fill the gaps of the discussion on the complete process flow of enforcement against land tax arrears outlined by the National Land Code 1965.