Taxpayers encouraged to use SVDP for past tax return

0

Datuk Seri Sabin Samitah

KUCHING: Taxpayers are encouraged to submit their tax return forms for 2017 and prior 2017 by taking advantage of the special voluntary disclosure programme (SVDP).

Inland Revenue Board (IRB) chief executive officer Datuk Seri Sabin Samitah said lower penalty rates would be imposed under the programme compared to the current practice.

“This is especially so for those who have not declared or submitted their return forms for 2017 or prior.

“Whatever declaration you are going to make, we (IRB) will accept it in good faith without any examinations, and without further questions.

“If you make a declaration before end of March this year, IRB will only impose 10 per cent penalty rate of the amount for that particular period,” said Sabin when met at IRB-mass media bowling tournament at Megalane Bowling in Batu Kawah yesterday.

He said SVDP was part of the government’s efforts in reforming the tax system, and to encourage taxpayers to come forward on a voluntary basis to report their actual income.

Voluntary disclosure covers income not previously declared/expenses over claims/expenses not allowed and reliefs/deductions/rebates over claim, reporting gains on disposal of assets (real property and shares in a real property company), and stamping of unstamped instruments, he said.

The programme is only valid from Nov 3, 2018 until June 30, this year.

Taxpayers taking up this programme should know the penalty rates imposed based on the period of declarations that they choose to declare.

“If the taxpayers choose to make a declarations under the programme between Nov 3, 2018 and March 31, 2019, only 10 per cent penalty of the amount of the return form (per year basis) will be imposed.

“If taxpayers choose to declare between April 1, and June 30, 2019, the penalty will be 15 per cent,” he said.

Higher penalty rates will be imposed after the expiry of the programme, to the tune of 80 to 300 per cent.

He said this was the first time the government has announced this kind of programme, which was presented by Finance Minister Lim Guan Eng during the Budget Speech on Nov 2, 2018. The programme started the following day.

Sabin said response to the programme was initially a bit slow.

“This is the Malaysian attitude. They want to wait until the last minute. So far, more than 200,000 people have taken up the programme, with penalty collection at RM1.306 billion.”

He added that this programme was also tailored for people who have offshore accounts (Malaysians having either Current or Saving Accounts overseas). They can also take up the programme and make declarations with prejudice.