IRB offers to reduce penalty for voluntary disclosure

01eKTP 7

Effective Date: 1 March 2016 to 15 December 2016
 

02Reduce Penalty

Relevant Income Tax Section : S112(3), S113(2), S51(3) and S52(2) of Income Tax Act 1967
 

031. Voluntary Disclosure Cases

• 15% - Pay within 30 days from notice
• 20% - Pay with 6 instalments

04Eligibility

• Involve all categories of tax files
• Before tax audit or tax investigation
• Submit relevant (current or past) tax return within effective date
• Confession or amendment of tax return made within effective date
• Taxpayer to sign agreement and consent of payment
  

052. Tax Audit Cases

• 25% - Pay within 30 days from notice
• 35% - Pay with 6 instalments

06Eligibility

• Involve all categories of tax files
• Case completed from 1st January 2016 to 15th December 2016.
• • Taxpayer receive Letter of Offer from IRB, sign agreement and consent of payment.
  

073. Tax Investigation Cases

• 25% - Pay full amount on signing date. If voluntary disclose within 14 days from visiting date, 20%.
• 35% - Pay 50% on signing date and balance with 6 instalments. If voluntary disclose within 14 days from visiting date, 25%.
• Not Qualified Cases – Signed settlement agreement before effective date of the operation guide.

08Eligibility

• Active cases as at 31 December 2015. Taxpayer to sign agreement and consent of payment before or on 31 July 2016, or
• Year 2016 cases, Taxpayer to sign agreement and consent of payment before or on 15 December 2016, or
• Cases with assessment raised based on Best Estimate as taxpayers not agree on penalty imposed under S112(3), S113(2). Offer applicable even filing of Form Q. Taxpayer to sign agreement and consent of payment before or on 15 December 2016.
  

Cases jointly investigate under Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 which fulfils the other eligibility criteria.