What is Wilful tax evasion ?

01What is Wilful tax evasion ?

Hello everyone. I am an account executive. Now I am in an SDN bhd in charge full set account.

I would like to ask everyone’s opinion, if the boss asks for false accounting, because the boss don’t want to give too much tax.

I’ve already told the boss that it’s illegal to do so.

If LHDN finds it out, what responsibilities do I have to bear? Will I be fined? Still going to jail?

02Two important laws as a reference

1. Income Tax Act 1967 Section 114 Wilful evasion
2. Company Act 2016 Section 245 Accounts to be kept

03Income Tax Act 1967 Section 114 Wilful evasion

114. (1) Any person who willfully and with intent to evade or assist any other person to evade tax

114. (1) (1A) …shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both

114. (1) (1A) Any person who assists in, or advises with respect to, the preparation of any return where the return results in an understatement of the liability for tax of another person shall unless he satisfies the court that the assistance or advice was given with reasonable care be guilty of an offence and shall, on conviction, be liable to a fine of not less than two thousand ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

04Company Act 2016 Section 245 Accounts to be kept

Section 245.(1) A company, the directors and managers of a company shall

(a) cause to be kept the accounting and other records to sufficiently explain the transactions and financial position of the company and enable true and fair profit and loss accounts and balance sheets and any documents required to be attached thereto to be prepared.

Section 245.(9) The company and every officer who contravene this section commit an offence and shall. on conviction be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Manager, in relation to a company, means the principal executive officer of the company for the time being by whatever name called and whether or not he is a director.

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