Many Malaysian businesses are adopting a “wait-and-see” mindset in preparing themselves for the implementation of the Goods and Services Tax (GST) on April 1, 2015.
Crowe Horwath Malaysia Executive Director for Tax Fennie Lim said it was vital for businesses to find out where they stand because GST is not just a tax and financial issue.
"It affects all parts of business operations starting from the IT system, procurement, sales and marketing, pricing setting department, supplier relationship, customer relationship to cash flow.
"All of them must know what GST is all about and how it impacts their business during this transitional period," she told Bernama.
Crowe Horwath Malaysia is the fifth largest accounting firm in the country and a member of Crowe Horwath International, a top 10 global accounting network.
"Sixteen months from now is not really a long period to undertake the necessary preparation. Right now is a very good time to start planning," Lim said.
She suggested that all departments in a company prepare a checklist and assess how much they know about GST and how it would impact their pricing.
"They then have to cross check with the accounting system to determine if it is ready to capture all the information.
"It is easy to make mistakes if they rely solely on human power," she pointed out.
Meanwhile, Crowe Horwath Australia GST Executive Director Chan Wai Choong said the best thing for businesses to do in approaching the implementation of the GST is to plan early in a structured method.
"Carefully scope the activities you have to do, the sooner the better. From there you can execute the plan and get ready for a trial run. There’s a saying that if you fail to plan, you plan to fail," Chan said.
Currently, Crowe Horwath Malaysia is helping most of its clients to do a pre-GST implementation study to determine the GST's impact on their cash flow and pricing.
"We do transaction analysis and from there we would be able to see what is their position and how far they are "GST ready".
"We will also study what type of things they need to put in place, what kind of systems and a lot of fine-tuning is necessary to make sure they are ready.
This will serve as a very good base should they want to do any price adjustment, said Lim.
She said many clients and non-clients have been educated through briefings, training sessions and seminars.
"We received a lot of enquiries, they are interested to know more. Most of the businesses are positive after understanding the GST because they can claim input tax," Lim added.
Bernama
Sun Dec 29 2013
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.