IRB must rethink its methods
FocusM | 12 Oct 2018 00:30
SINCE June 2011, the Inland Revenue Board (IRB) has been imposing a hefty 20-35% fine on those who failed to submit their income tax returns on time. According to the IRB, this is provided for under the Income Tax Act 1967 subsection 112 (3).
In fact, the Income Tax Act provides for even heavier fines of up to triple the taxable amount, so the 20-35% charged by IRB appears reasonable. However, this ignores the fact that companies have been actually paying their taxes upfront via tax estimations. Since companies have been paying their taxes upfront, why then the late charges imposed on the total taxable sum?
Charging an additional 20-35% for late filing, some observe, is worse than what some loan sharks charge. The IRB really has to rethink this. Already, many citizens are feeling the pinch where under the previous government, prices soared due to the Goods and Services Tax (GST).
With the Pakatan Harapan government now in charge, it is projecting a kinder, gentler image. The GST has since been replaced with the Sales and Service Tax (SST).
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