TAX AND MALAYSIA

Tax is a state levy imposed on certain goods that have certain properties, namely its use should
be controlled, the cycle must be monitored, its use could cause a negative impact to the
community or the environment, or application needs to reduce the burden on the state for the
sake of justice and keseimbangan.diadakan income tax administration is to achieve the maximum
degree of adherence to the income tax Act 1967 ( 'total compliance').

Among the objectives of the voluntary tax compliance are:

a. payer will prepare and file tax form for declaring actual income received

b. the form will be submitted within a certain period

c. number / number of persons who can be taxed will be notified and they will file they
form

d. payment tax is made immediately

e. employers and the authorities be required hold or cut tax from the source earnings
employees and then sent to the IRB (tax deduction Scheduled)

Among these are the steps to achieve compliance objectives:

a. publicize and electronic mass media by providing @ facility counters and explain
procedures in terms of pay tax

b. administration of tax laws made consistently and immediately

c. detect those who do not comply advance tax and take action on them

d. improve function collection tax continuously, for example by extending the rules on tax
schedule

e. provides education taxes such as organizing seminars, campaigns, sessions question time
on radio and television, dialogue or campaigns move.

The tax administration can be divided into several sections:

 a. the form statements

b. assessment

c. collection

d. flattery

e. fine

The process starts from the taxation of the income statement by the taxpayer through a specific
tax form provided by the IRB. In Malaysia, tax forms are usually released in late February or
early March and the responsibility of the taxpayer to request a form from the IRB (not the
obligation IRB).

According to the provisions of section 77 (1), the taxpayer must complete and return the relevant
form within 30 days from the date of receipt or the period prescribed by the Director General
(DG). If there is delay, the application for extension of time must be made. According to the
provisions of section 77 (2), the responsibility of the taxpayer to inform the DG within 10 days
of April if the receivables form within three months of each year (March 31).

According to the provisions of section 90 (2), if a taxpayer fails to request the form and specify
the number of basic income for the year concerned, the IRB will make an estimated budget. Tax
must be paid within 30 days after receiving the notice of assessment. Form of statements divided
into several forms such as Form B1 (salaried by the government), Form B (salaried and private),
Form C (company), Form P (sharing), Form T (trust)

The IRB may either when getting this form is returned by the taxpayer:

a. receive the amount specified by the taxpayer then make an assessment of tax on the
amount of revenue

b. deduct the amount declared by the taxpayer the tax on the income estimates payer The
tax, then the newly created assessment.
Among the types of assessment that can be made by the IRB are:

a. Original assessment (section 90 (1) of the ITA 1967)

If the taxpayer has returned the income statement over the period of time set with the statement
of the employer or business account, then the original assessment will be levied on such income.

b. Assessment introduction (section 92 of the ITA 1967)

The estimates are preliminary or estimated preliminary assessment made by the IRB as provided
by ITA 1967. According to section 92 (1), KP may impose a preliminary assessment on the
taxpayer's income.

For example: Mr. Razif, a lecturer will pursue studies in October 2001. Typically, his income in
the base year 2001 will be assessed in 2001, but he may request that their income can be
estimated on the base year 2000.

c. Assessment Additional (section 91 (1) of the ITA 1967)

An assessment has been made can be changed or additional assessment levied. Additional
assessments can be made within a period of 12 years after the year of assessment. Additional
assessments made if:

i. There are income Extra touches and income taxes are not included in the original
assessment or

ii. tax assessment first too low. This may occur if the first estimate is an estimate estimates
and actual information show assessment Additional needs to be made. It also may occur
when the pieces were first berries.

d. Assessment be got up

Assessment will only be increased if there is an appeal issued by the taxpayer, and the result of
the appeal:

i. P rights payer taxes has reached an agreement with the Director General of the IRB when
a review of the assessment made and
 i. Parties or the Special Commissioners Court has decided to issue an assessment increased
the tax payable by the payer tax

e. Assessment estimate

If the Director General of the IRB did not agree with the form or account statements that are
included by the taxpayer in respect of the budget of an assessment may be imposed on such
income

f. Assessment composite

This assessment is an assessment made as effective low tax imposition on account of mistakes
made by taxpayers.

These estimates include the amount of tax undercharged and penalties imposed. Typically this
assessment is issued when an agreement between the IRB and the taxpayer has been reached.
Among the offenses that may be committed by the taxpayer is:

a. make mistakes on purpose when express the form statements

b. failed to give notice imposition tax as required by section 77 (2) or (3)

c. fill the form tax improperly to leave or reduce an income that can be taxed by the Act
either for yourself or as a representative of the payer tax

d. giving incorrect information in respect of taxes Private or taxes on behalf of another

individual.

Once the assessment is completed, a notice, known as a notice of assessment issued by the IRB
to taxpayers. For regular assessment, the notice will contain details such as the year of
assessment, the amount or additional amount subject to tax, the tax is calculated, or the amount
of tax, if any.

For the assessment after the appeal, the notice of assessment will contain details such as the year
of assessment and the amount added in taxes. For composite assessment, assessment notice will
contain details such as the year of assessment or years of assessment, the amount or amounts
accumulated tax undercharged or not affected by the tax, the amount or the number of
outstanding fines have been imposed and where the total payment to be made.

Generally, an assessment will be considered as final and conclusive assessment if:

a. there is no legal appeal is made within the period specified by section 99 ACP 1967 (or
within additional)

b. agreement has been reached regarding the assessment of the Director General of the party
payers tax

c. assessment review been determined after appeal and no right to appeal more advanced
and

d. notice legal appeals have been received but the claimant died before hearing Special
Commissioner conducted and there were also representatives of the deceased who comes
begging to continue hearing within 2 years after death.

If the taxpayer has been notified amount of tax payable by a notice of assessment, then he has the
right to appeal or objection to the assessment.

Appeals or protests must be made within 30 days from the date of notice. All appeals or protests
must be submitted to the Director General of the IRB. If the appeal is not resolved by the
Director General of the IRB, then the case will be referred to the Special Commissioners.

A taxpayer can appeal according to the procedures as provided by sections 99 to 101 of the ITA
1967. According to section 99 of the ITA 1967, a taxpayer who is not satisfied with the
assessment, regardless of whether the assessment provided by the IRB or the determined by the
taxpayer in the form of income statements, he may appeal to the Special Commissioners by the
Director General of the IRB within 30 days of the notice of assessment issued:

a. for case assessment Earlier, an appeal can be made within 3 months first year assessment
after notice assessment issued

a. all appeals shall be made in writing in accordance with a specific format and must be
stated reasons appeal or other details as may be required by the form appeal.
Pursuant to section 100 (1) ACP 1967 are:

a. a payer tax may also apply in writing to the Director General for the period IRB flattery
extended

b. if the parties do not approve the request of the Director General to continue During that
period, the payer tax within 21 days from the date notice failure continue period to apply
directly to the Special Commissioners.

Section 101 ACP 1967 also provides that the Director General should review all tax appeals
made by the taxpayer. To this end, section 101 (1) ACP 1967, allowing the IRB to act by:

a. ask payer tax appeal to provide any additional information relating to the assessment
issued (if necessary)

b. asked the appellant to produce all books and documents relating to that assessment

c. point anyone only to appear before the Director General to provide information relating
to the assessment or

d. check them directed attend or lead them to lift oath.

In addition, section 101 ACP 1967 also explained that the tax appeal can be arranged when
checking in three ways, namely:

a. a written agreement

b. verbal agreement

c. proposal writing

Section 102 ACP 1967 also entitle the taxpayer to make an application in writing to the Director-
General to submit a notice of appeal to the Special Commissioner within 6 months after the
appeal was sent to the Director General but has yet to make any action. This situation will only
occur if an agreement between a taxpayer and the Director General can not be achieved. The
Director General shall submit a notice of appeal to the Special Commissioners within 3 months
after receipt of the written request. Section 102 (5) ACP 1967 also entitle the taxpayer to drop his
appeal at any time before the appeal is completed, if it deems appropriate or agreement between
the taxpayer and the Director General has been reached.

According to section 103 ACP 1967, a taxpayer is required to pay the tax as stated in the notice
of assessment. Payment must be made regardless of whether the taxpayer intends to appeal or
not. This means, one must pay taxes in advance and then you can make an appeal. Tax payments
must be made within 30 days of the notice of assessment.

If the taxpayer fails to pay within that period, the penalty will be charged 10% of the amount
stated in the notice of assessment. Taxpayers will then be given a period of 60 days to pay the tax
along with penalties imposed. If the taxpayer still fails to pay within the period, then another
additional penalty of 5% on the outstanding amount (the amount of taxes and penalties) will be
charged. If even this is still not made by the taxpayer, then other measures can be taken against
the taxpayer as court action, declare bankruptcy, or liquidation action prevents the taxpayer from
leaving the country without paying taxes.