This year will be a bad year for those evading taxes as IRB implements strong measures to nab them – CEO
Datuk Dr Sabin Samitah -File Photo
SUBANG: The Inland Revenue Board (IRB) will this year put in place strong measures to deter tax avoidance and evasion by focusing on individuals and firms engaging in such misconduct.
Its chief executive officer (CEO) Datuk Dr Sabin Samitah said the offences included those who engaged in aggressive tax planning, by unethically abusing the tax provisions in place, and manipulating their accounts to shift their profits to low tax jurisdictions.
“IRB views the ploy seriously, as it erodes the country’s tax revenue and sends a negative signal to potential investors in the country,” he said in his speech here yesterday at the 9th IRBM-Malaysian Employers Federation (MEF) Seminar 2018.
The text of his speech was read by IRB deputy CEO (Compliance) Abdul Manap Dim.
The seminar is aimed at updating delegates, especially the employers, on current issues related to income tax.
Dr Sabin said IRB would continue to take appropriate measures to ensure that taxpayers and the general public viewed the tax authority as a fair and transparent entity.
He said the activities conducted by the board were not out of the norm and was well within the normal course of duty, within the stipulated legal framework and in no way, should be considered ‘aggressive’.
“We are very well aware of the concerns pertaining to tax compliance issues among taxpayers… however, you have nothing to worry if you have been abiding by the tax laws as we’re aiming at those non-compliant taxpayers…our aim is simple, to ensure there is a level playing field for all taxpayers by creating a fair and transparent system,“ he added.
The CEO said ‘underground economy’ would be another area of focus by IRB and it was tackling the problem through various collaboration with other government agencies.
“In terms of compliance strategies, we will also reinforce all our activities right from the identification and registration of taxpayers until the tax is collected…we will also increase the coverage and scope of our audit activities.”
Meanwhile, Abdul Manap when met by reporters said more than 10 per cent of company and non-company employers failed to submit Form E (return form of employer) as well as CP8D form (list of employees) for assessment last year.
He reminded employers to meet the deadline not later than March 31. Failure to do so will result in legal action against the company’s director.
“All taxpayers will be in our radar, including the ‘big fish’ (big and multinational companies)…we want to create a tax system which is fair to compliant taxpayers, and hard on taxpayers who wilfully avoid and evade taxes,” he said. — Bernama