PM: Bankrupts not left out

Those de­clared in­sol­vent still qual­ify for gov­ern­ment aid

The Star Malaysia - - Nation -

TAX­PAY­ERS who have been de­clared bank­rupt by the In­sol­vency De­part­ment are still qual­i­fied to re­ceive gov­ern­ment as­sis­tance such as the 1Malaysia Peo­ple’s Aid (BR1M).

“In­di­vid­ual tax­pay­ers who have been de­clared bank­rupt and are reg­is­tered with the In­sol­vency De­part­ment can still re­ceive aid from the Gov­ern­ment, such as BR1M,” Prime Min­is­ter Datuk Seri Na­jib Tun Razak said in a writ­ten re­ply in the De­wan Rakyat yes­ter­day.

He was re­spond­ing to a ques­tion by Datuk Dr Makin @ Mar­cus Mo­jigoh (BN­Pu­tatan), who asked whether the Gov­ern­ment in­tends to de­clare bank­rupt those who fail to pay their taxes and the type of as­sis­tance of­fered to such in­di­vid­u­als.

On the amount col­lected by the In­land Rev­enue Board (IRB), Na­jib, who is also Fi­nance Min­is­ter, said the to­tal gross di­rect tax col­lected stood at RM114.02bil as of Dec 31, while in­come tax that had yet to be col­lected was es­ti­mated at RM6.81bil.

“Tax laws en­able the Gov­ern­ment to take ac­tion against those who fail to pay out­stand­ing amounts.

“Be­fore we take civil ac­tion, a re­minder let­ter as well as a no­tice of ar­rears will be sent to the tax­payer. We can also bar him from leav­ing the coun­try, based on Sec­tion 104 of the In­come Tax Act 1967.” he added.

“If all else fails, and the tax­payer still re­fuses to pay the ar­rears, the Gov­ern­ment will ini­ti­ate civil ac­tion un­der Sec­tion 106 of the In­come Tax Act 1967.

“If that is un­suc­cess­ful, the Gov­ern­ment can take ac­tion to de­clare that per­son a bank­rupt and move to close his busi­ness.”

Na­jib also noted that a to­tal of 116 bank­ruptcy cases had been reg­is­tered with the In­sol­vency De­part­ment and the IRB, in­volv­ing tax ar­rears of RM14.4mil.

“Of the to­tal num­ber, 93 cases in­volved in­di­vid­ual tax­pay­ers and RM11.32mil, while the rest in­volved com­pa­nies or cor­po­ra­tions,” he said.

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