Abstract
This chapter highlights the importance of continuance usage intention of a technology. Continuance intention is defined as one's intention to continue using or long-term usage intention of a technology. Although initial acceptance is important in identifying the success of an information system, continued usage is even more significant in ensuring the long-term viability of technology innovations and in enhancing the financial and quality performance of an organization. Therefore, this chapter aims to examine the continuance usage intention of e-filing system by taxpayers in Malaysia. The data were collected from 153 taxpayers in the northern region of Malaysia using survey method. The result shows a significant relationship between perceived usefulness and continuance usage intention. Surprisingly, perceived usefulness was found to be insignificantly related to satisfaction and satisfaction towards continuance usage intention. Implication of these findings to the Inland Revenue Board of Malaysia is also elaborated.
TopBackground
E-Filing system in Malaysia was introduced in 2006 by the Malaysian Inland Revenue Board (IRBM) to the Malaysian taxpayers. E-Filing system as a whole integrates tax preparation, tax filing and tax payment, which serves as a major advantage over traditional manual procedure (Ambali, 2009). Under the e-filing system, taxpayers need to fill their tax returns electronically via internet. The submission via e-filing has shown a tremendous increase since its launching in 2006 particularly for individual taxpayers. The number of submission grew from 186,271 (2006) to 873,095 (2007) (Annual Report IRBM, 2007) to 1,171,105 (2008) to 1,466,507 (2009) (Annual Report IRBM, 2009) to 1,666,134 (Annual Report IRBM, 2010). This shows that 33% of the total registered individual taxpayers (5,040,782) have filed their income taxes via e-filing in 2010 (Annual Report IRBM, 2010). The number of submission increases further to 1, 800,000 (2011) and 2,100,000 (2012) (New Straits Times, 2012) (refer to Figure 1). Various advantages are highlighted that can be provided by e-filing system such as the IRBM improves the efficiency of the tax assessment method, by increasing tax collection and reducing computation errors. Secondly, it saves taxpayers’ time as tax returns are sent electronically to the IRBM. Thirdly, cost effective as it reduces cost on printing, imaging, postal and storage since it is paperless. Finally, the tax calculation is more accurate due to automatic calculation and detection of mathematical errors and incomplete fields by the system (Hasmah, 2009).
Key Terms in this Chapter
Manual Filing: The traditional submission method “either by hand or typewriter. Taxpayers usually perform complex calculations using mental arithmetic or calculator, and then the return is delivered to the tax agency through the postal service or in person ( Fu, Farn, & Chao, 2006 ).
Electronic Government: E-government refers to the use of information technology by government agencies, such as web-based Networks, the Internet, and mobile computing, that have the ability to transform relations with citizens, businesses, and other arms of government ( Fang, 2002 ).
Information Communication Technologies (ICT): A broadly used term that can encompass many technologies used to produce, process, exchange, and manage information and knowledge ( Raman, 2008 ).
Satisfaction: Defined as the “pleasurable fulfillment response resulting from an evaluation with respective to how well the consumption of a product or service meets a need, desire, or goal” ( Deng, Turner, Gehling& Prince, 2010 ).
Taxpayers: Individuals who are liable to pay income tax on all of his or her income for a tax year ( Melville, 2005 ).
E-Filing System: A system that allows taxpayers to submit their income tax details online and is considered as an alternative to the usual manual paper submission ( Ambali, 2009 ).
Continuance Intention: Refers to ones intention to continue using or long term usage intention of a technology ( Bhattacherjee, 2001 ).
Perceived usefulness: Defined “as the prospective user’s subjective probability that using a specific application system will increase his or her job performance within an organizational context ( Davis, Bagozzi & Warshaw, 1989 ).