During the management meeting, Mr. Katsuki, a director from Japan, indicates that never in his past experiences in Japan had he encountered any discussion involving the need to make any adjustment for tax in the preparation of a company's account.

He argues that the tax paid by the company to the tax authorities will be similar to its tax expenses presented in the financial statements.

By using situation above. explain to Mr. Katsuki the differences between tax rules and financial accounting and reporting standards that might cause the tax calculated for tax purposes and accounting purposes to differ, especially in the context of Malaysian tax and accounting systems.