eKTP 102

IRB Special Program For Voluntary Disclosure
Part 3 of 3 

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Q & A section

1. Is the Special Program on Voluntary Disclosure offered annually? If yes, are the same penalty rates offered?

No. The Special Program on Voluntary Disclosure is only offered from 03 November 2018 until 30 June 2019.


2. What is the key difference between voluntary disclosure under this Special Program for Voluntary Disclosure and the previous voluntary disclosure offer?

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3. If the audited report has yet to be prepared, can I make voluntary disclosure based on the Management Account?

Yes. The IRBM will accept in good faith all voluntary disclosures made during the Special Program for Voluntary Disclosure period. Further review will not be made on the reported information.

However, if after the Management Account is being audited and there is an additional tax, the taxpayers should report the difference to IRBM. The IRBM will raise additional assessment with penalties based on the penalty rate offered in accordance with the voluntary disclosure period that has been made.


4. Is this Special Program for Voluntary Disclosure open to cases related to withholding tax?

Yes, this Special Program for Voluntary Disclosure is also open to withholding tax cases.


5. I have income earned from Malaysia and deposited in a bank account abroad. Is this income subject to tax in Malaysia?

Income earned from Malaysia and deposited in a bank account abroad is subject to the provisions of the Income Tax Act 1967. Taxpayer is responsible for reporting this income. 

In line with the implementation of the Automatic Exchange of Financial Accounts Information (Common Reporting Standard), beginning from 2018, the Inland Revenue Board of Malaysia (IRBM) will be receiving the financial accounts information of Malaysian taxpayers held overseas annually.

Such financial accounts include money deposited in bank accounts, interest, dividend, unit trust, cash value insurance contract or annuity contract and proceeds from the sales or redemption of financial assets and shares.


6. I have not registered my business with the Companies Commission of Malaysia (CCM). Can I report my income under this Special Program for Voluntary Disclosure?

Taxpayers can make voluntary disclosure as they fall under the category of taxpayers who are not registered with the IRBM.


7. If I report income from illegal activities to the IRBM under this Special Program for Voluntary Disclosure, will the IRBM report the information to relevant agencies?

The IRBM is bound by confidentiality pursuant to Section 138 of the ITA, (confidentiality of taxpayer’s information).


8. If I have made a voluntary disclosure prior to this voluntary disclosure period and the IRBM has not raised the additional tax assessment, am I eligible for the penalty rates under this Special Program for Voluntary Disclosure?

Taxpayers are advised to resubmit the same voluntary disclosure during this voluntary disclosure period to enable them to benefit from the lower penalty rates.


9. I have received an Audit Commencement Letter from the IRBM and wish to make voluntary disclosure.

Will the IRBM continue its audit examination on my business?

An audit examination may be carried out on the taxpayer if the voluntary disclosed information is not in line with the audit issue.


10. I have made voluntary disclosure. Do I have to wait for the notice of assessment before paying the tax?

Taxpayers do not have to wait for the notice of assessment. Payments should be settled before the period of voluntary disclosure ends to avoid tax increases based on the prevailing provisions of the law.


11. I have made voluntary disclosure on 20/02/2019 and tax payments as follows:

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What are the actions that can be taken by the IRBM?

Full payment must be made before or on 01/04/2019. The IRBM may impose an increase in tax pursuant to section 103 of the ITA due to failure to settle the second payment within the stipulated period.


12. I have made voluntary disclosure via mail within the Special Program for Voluntary Disclosure period. If the voluntary disclosure is received by the IRBM after the end of the period, am I still eligible for the penalty rates under the Special Program for Voluntary Disclosure period?

For taxpayers who have submitted their voluntary disclosure via mail, the date of voluntary disclosure is the date of receipt by IRBM’s Mailing Unit.  

Taxpayers are advised to make voluntary disclosures within the stipulated period in order to enjoy the penalty rates offered under the Special Program for Voluntary Disclosure.


13. If I have appealed to the Special Commissioners of Income Tax (SCIT), can I still make voluntary disclosure?

Taxpayers are allowed to make voluntary disclosure on issues not related to the case appealed to the SCIT.


14. If I have made voluntary disclosure within the Special Program for Voluntary Disclosure period, can I apply for a reduction/ waiver of the penalty?

Penalty rates are final. However, taxpayers can still file in their appeals to the SCIT according to the appeal procedures currently in force.