Tax administration performance: The case of Royal Malaysian Customs Penang

This study assessed the performance of tax administration in Malaysia from the perspectives of both tax employees and taxpayers’ satisfaction. Data for this study was collected through questionnaire surveys on tax employees and taxpayers of the Royal Malaysian Customs Penang (RMCP).The result shows that tax employees at RMCP were less satisfied with the department’s concern for their welfare, the department’s system for recognising and rewarding employees’ performance and the salary for the employees.All these three aspects revolved around the issue of employee welfare and salary.As for taxpayers’ satisfaction, the result of this study shows that taxpayers were less satisfied with the time management of RMCP in providing services to them.The taxpayers expressed dissatisfaction with RMCP’s ignorance thatwaiting time is important for them, the lack of ability of RMCP to address their questions promptly and the long taxpayer waiting time at RMCP.The finding suggests that RMCP’s time management is considered very important to the taxpayers when receiving services at the department. Thus, RMCP should consider improving employee and taxpayer satisfaction by practicing what has been done by international revenue bodies such as the United States Internal Revenue Service (IRS). In its balanced measurement system, the IRS includes productivity through a quality work environment to increase employee job satisfaction and hold agency employment stable while the economy grows and service improves; and provide accurate and professional services to internal and external customers in a courteous and timely manner.This practice will help RMCP to improve its integrity from the perspectives of both employees and taxpayers