IRB allows local insurer’s appeal against additional assessments

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The group photo of students and the lecturers after the Awards Day ceremony with Mdm Mukvinder Sandhu, the Head of Centre for Pre-U Studies (second from left).

KUCHING: A local insurance company has been granted appeal against the additional assessments, following a tax audit by Inland Revenue Board (IRB) last year.

Consequent to that audit, the board discovered that the company’s payment of fees incurred for services rendered on loss control management for its clients as not expenses wholly and exclusively incurred in the production of its business income, and disallowed for tax deductions.

The IRB then issued Notices of Additional Assessment for years of assessment 2007 to 2010, requiring the company to pay a total amount of additional tax plus 45 per cent Section 113 (2) penalty amounting to RM120,000.

Aggrieved by this, the insurance firm through its tax consultant Lam Kam Wing of Tasmanco Consultancy Services Sdn Bhd, submitted Notices of Appeal against the additional assessment to the Special Commissioners of Income Tax (SCIT).

As a result of a discussion and mediation held here between IRB’s senior officers from Kuala Lumpur and the tax consultant as well as having further studied the evidence and grounds of appeal submitted by the tax consultant, the board’s director general eventually allowed the company’s appeal.

With this allowance, the company’s appeal is considered as finally settled without sending the Notice of Appeal to SCIT.