IRB to col­lect RM10­bil

Rev­enue ex­pected from one mil­lion tax­pay­ers un­der spe­cial vol­un­tary dis­clo­sure pro­gramme

The Star Malaysia - StarBiz - - Front Page -

PETALING JAYA: The Spe­cial Vol­un­tary Dis­clo­sure Pro­gramme (SVDP) is ex­pected to col­lect RM10­bil from at least one mil­lion tax­pay­ers who may have mis­re­ported their tax fil­ings or did not de­clare their in­come to the In­land Rev­enue Board (IRB).

Ac­cord­ing to IRB chief ex­ec­u­tive of­fi­cer, Datuk Seri Sabin Sami­tah, the SVDP pro­vides a golden op­por­tu­nity for tax­pay­ers to come for­ward vol­un­tar­ily, as the dis­clo­sures made would be taken in good faith by the gov­ern­ment agency.

“The SVDP aims to at­tract at least one mil­lion tax­pay­ers with an es­ti­mated RM10­bil in tax col­lec­tion,” Sabin said in his key­note ad­dress at a sem­i­nar on the tax amnesty pro­gramme or­gan­ised by Deloitte Malaysia yes­ter­day.

En­cour­ag­ing tax­pay­ers to sign up for the SVDP, Sabin noted ac­cess to var­i­ous sources of in­for­ma­tion on tax­pay­ers and the use of big data would en­able the IRB to track delin­quent tax­pay­ers.

“As the say­ing goes ‘you can run but you can­not hide’ and hence, tax­pay­ers are en­cour­aged to take ad­van­tage of the SVDP, a one-off ini­tia­tive of­fered by the gov­ern­ment,” he said.

The SVDP is a tax amnesty pro­gramme an­nounced in No­vem­ber dur­ing the tabling of Bud­get 2019. The scheme, which com­menced from Nov 3, 2018 un­til June 30, 2019, will of­fer tax­pay­ers re­duced penalty rates for mis­re­port­ing their tax fil­ings or fail­ure to de­clare their in­come to the IRB.

If dis­clo­sure of un­re­ported in­come is made from Nov 3, 2018 un­til March 31, 2019, the penalty would be 10% of the tax payable.

If dis­clo­sure is made from April 1 to June 30, 2019, the penalty would be 15% of the tax payable.

Af­ter the pro­gramme ex­pires on June 30, 2019, the penalty rates would range from 80% to the max­i­mum of 300% as pro­vided for un­der the ex­ist­ing tax laws.

Deloitte Malaysia said it would ex­pect more sign-ups for the SVDP in the com­ing months be­fore the scheme ex­pires at end-June to avoid stiff penal­ties.

Deloitte Malaysia coun­try tax leader Sim Kwang Gek said the in­tro­duc­tion of the SVDP was timely.

Stress­ing the im­por­tance of pro­vid­ing com­plete dis­clo­sure in fi­nan­cial re­port­ing and tax fil­ing, she said: “Prac­tis­ing trans­parency is an or­gan­i­sa­tion’s biggest as­set.

It helps with man­age­ment and or­gan­i­sa­tional cred­i­bil­ity, and can boost in­vestors’ trust and pos­i­tively in­flu­ence the per­for­mance of an or­gan­i­sa­tion while pro­tect­ing share­hold­ers’ in­ter­ests.”

An­nounced by Fi­nance Min­is­ter Lim Guan Eng last No­vem­ber, the SVDP is ex­pected to en­hance tax rev­enue col­lec­tion for the gov­ern­ment.

Deloitte Malaysia said the ini­tia­tive rep­re­sented the gov­ern­ment’s fo­cus on pro­mot­ing com­pli­ance to en­hance tax rev­enue col­lec­tion, rather than bur­den­ing all tax­pay­ers by rais­ing in­come tax rates.

The gov­ern­ment has es­ti­mated the in­come tax col­lec­tion from in­di­vid­u­als to amount to RM34.8bil in 2018, while com­pa­nies would be pay­ing RM70.54bil.

For 2019, with­out tak­ing into ac­count ad­di­tional tax rev­enue from the SVDP, the fig­ures are an­tic­i­pated to be flat at RM34.9bil and RM70.2bil for in­di­vid­u­als and com­pa­nies, re­spec­tively. In 2017, the gov­ern­ment col­lected a to­tal of RM177.66bil in tax rev­enue, while in 2018, it was RM174.7bil. The gov­ern­ment is es­ti­mated to col­lect RM176.15bil in 2019, and this has yet to take into ac­count ad­di­tional rev­enue un­der the SVDP.

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