The explosion of information technology (IT) nowadays has
created new phenomena in shopping activities. Consumers can easily
buy products via Internet. Within a minute, the products will be
delivered instantly and accurately. This scenario is known as e-commerce.
The emergence of e-commerce affects consumers? shopping
behavior as well as taxation system. The objective of this research is to
reveal the effects of e-commerce upon Malaysian taxation system by
emphasizing in scope of charge ?derive and remittance?. Research was
conducted through questionnaires of 82 tax practitioners and 22
academicians. The research findings shown that derive and remittance
basis is no longer appropriate in e-commerce environment. Scope of
charge derives and remittances, which are practicing in Malaysia right
now, are unable to maximized e-commerce tax revenue.