128,165 travel restriction certs issued by IRB

A TOTAL of 128,165 certificates of restrictions to travel abroad with tax arrears amounting to RM3.4bil have been issued by the Inland Revenue Board (IRB).

The certificates are still in force as of June this year, said the 2015 Auditor-General’s Report (Series 2).

The certificates were issued in accordance to the Income Tax Act and Real Property Gains Tax Act.

Tax defaulters can apply for the travel restrictions to be lifted by settling the arrears in full or apply for a provisional or temporary release that allows the individual “an approved limited release period”.

Under the two Acts, individuals or company directors would be barred from leaving the country if they failed to settle their taxes.

The report also recommended updating the process of blacklisted tax defaulters from travelling abroad and improving the IRB’s system in order to enable checking and monitoring of all taxpayers who have been barred from leaving the country.

It also said that the enforcement on temporary release processes and civil suits should be implemented consistently in accordance with the regulations while assertive action should be taken against employers who failed to settle tax arrears of their workers upon leaving Malaysia.