Special voluntary disclosure scheme extended
PUTRAJAYA: The first phase of the Special Voluntary Disclosure Programme (PKPS), under which taxpayers are subject to a 10 per cent penalty on the amount of tax payable, has been extended to June 30, 2019.
In a statement yesterday, Finance Minister Lim Guan Eng said the Cabinet agreed to the extension following very encouraging response from taxpayers.
He said as of March 31, the Inland Revenue Board (LHDN) had received 381,979 voluntary disclosures.
The scheme’s second phase, when taxpayers are imposed a 15 per cent penalty, will begin on July 1 and end on Sept 30 this year, he said.
“From Oct 1, 2019, a penalty of 45 per cent and above will be imposed on taxpayers who fail to submit their Income Tax Return Form (BNCP) and who underdeclare their income,” he said.
Lim said the PKPS scheme focuses mainly on taxpayers who have an overseas bank account and have income generated from sources within Malaysia but have not declared it to LHDN.
He said the government welcomes taxpayers who do not have an overseas bank account to make a voluntary disclosure on income generated from within Malaysia that has not been declared.
“The government hopes with the extension, more taxpayers will join the PKPS scheme so that they can enjoy a lower penalty and lower their tax burden,” he said.
Lim said individual taxpayers can make voluntary disclosures for income earned before Dec 31, 2017, while companies may do so on income earned before the accounting period ending March 31, 2018.
He added that LHDN has adhered to the government’s directive issued last year that all investigations are carried out without threats, including raids on taxpayers’ houses or business premises accompanied by armed and masked personnel.
Lim said LHDN would accept any voluntary declaration by taxpayers in good faith and would not subject them to further scrutiny, adding it would also issue a confirmation letter for every voluntary disclosure it receives. - Bernama