Tax education will increase voluntary tax compliance rate – IRB
KENINGAU: Inland Revenue Board Malaysia (IRB) chief executive officer Dato Sri Sabin Samitah is confident that tax education can increase the understanding of the community and further increase voluntary tax compliance rate.
He said this will culminate in the awareness that reporting and paying taxes is the responsibility of a citizen for the progress and prosperity of the nation.
“Hence, this seminar is the best platform to get the latest information from IRB on tax issues, clearly and accurately,” he said in his speech when officiating the IRB National Taxation Seminar here yesterday. The text of his speech was read by Keningau IRB director Mohd Shahriz Ramli.
Sabin said the attendance of 149 participants, including IRB officers from across the state, at this seminar proved the full support for the efforts of the IRB’s tax education programs.
He said this year, 24 locations were selected for the seminar nationwide, starting with the first seminar in Kuala Lumpur on November 2 and will end on November 16 in Shah Alam, Kuching and Labuan.
According to him, the positive feedback received from the seminars was a clear message that today’s society is closely respected, sensitive and aware of the changes in the country’s tax system.
“This also leads to the need to seek further clarification or information, accurately and clearly on the changes. IRB thanked the professional bodies, tax firms and individuals as tax practitioners involved directly or indirectly in contributing the pre-Budget 2018 proposals to the Ministry of Finance to ensure the sustainability of the national economy continue to be good and strong,” he said.
He said that at the seminar, two key topics would be presented, namely, the 2018 Budget Proposals presented by Norhaslinda Bukhari and Tax Compliance: The Way Forward by Ellyana Mohd Zaid.
Sabin said both of these speakers are senior IRB officers with expertise and experience in tax management and administration as well as involvement with the Budget Working Committee for the drafting of the Financial Bill for Budget 2018.
He is confident they would be able to provide a clear and accurate description of any issues or concerns that face the taxpayers
“On the first topic, 2018 Budget Proposals, participants will get to share in detail the tax issues that have been addressed or raised in Budget 2018, amendments to the provisions of the laws administered by the IRB.
“Content sharing of the 2018 Budget relating to taxation involves 14 amendments under the Income Tax Act 1967; four amendments under the Real Property Gains Tax Act 1976; an amendment under the Labuan Business Tax Act 1990, and 13 amendments under the Stamp Act 1949 and other amendments under the Income Tax and Income Tax Exemption Rules,” he said.
Meanwhile, he said in the presentation of the topic on Tax Compliance: The Way Forward, the speaker will share the compliance mechanism from the submission of the form until the collection activity through law process under the Income Tax Act (ACP) 1967.
According to him, this topic is also a first and an early explanation of IRB’s concern for taxpayers that a 100 per cent penalty will be imposed in 2018 and its impact on taxpayers if they are not compliant and errant.
Therefore, Sabin said he expected the topic to be fully focused on widening the knowledge and understanding of taxpayers, tax practitioners and participants in order to better understand the tax compliance scope and actionable action under the tax laws.
He said the IRB is an important government agency with its function and role as a direct tax collector, which is a major contributor to the country’s income source.
“Direct taxes collected together with other governmental proceeds will be used for development-related matters based on the diversity of programs and transformation agenda of the country that have been planned, and ultimately enjoyed by all levels of society comprehensively.
“I urge all to jointly assist the IRB to encourage the community to support the country’s tax system by increasing the level of tax compliance for continuity of the country’s future,” he said.
He said the IRB would do everything possible to ensure that the country’s tax administration and management system are always managed more efficiently and with integrity based on the scope of the Act administered by the IRB and other relevant laws.