MINIT MESYUARAT WORKING GROUP LHDNM BERSAMA...
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MINIT MESYUARAT WORKING GROUP LHDNM BERSAMA
PERSATUAN AKAUNTAN DAN PENGAMAL PERCUKAIAN
DIALOG DESIRE BIL. 1 / 2019
Tarikh: 22 April 2019 (Selasa) Masa: 10:00 pagi
Tempat: Bilik Mesyuarat Bendahara, Aras 1, Menara Hasil,
Ibu Pejabat LHDNM Cyberjaya, Selangor.
SENARAI KEHADIRAN WAKIL LHDNM
SENARAI KEHADIRAN WAKIL
BADAN PROFESIONAL DAN PENGAMAL PERCUKAIAN
1. UCAPAN PENDAHULUAN PENGERUSI
1.1 Pengerusi memulakan dengan ucapan salam, selamat pagi dan selamat
datang kepada ahli-ahli mesyuarat yang terdiri daripada wakil-wakil
badan profesional dan pengarah-pengarah Jabatan / Bahagian serta
wakil yang hadir ke mesyuarat DESIRE bagi tahun 2019.
1.2 Sesi dialog ini adalah bertujuan untuk menambahbaik sistem
penyampaian perkhidmatan LHDNM kepada pembayar cukai dan
mewujudkan tax eco-system yang sihat. Pengerusi mengalu-alukan
sebarang cadangan dan maklum balas dari badan-badan profesional
berkaitan penambahbaikan prosedur operasi untuk meningkatkan
perkhidmatan LHDNM termasuk e-Filing.
1.3 Badan profesional ini memainkan peranan yang penting kepada
kerajaan, khususnya LHDNM kerana sebagai pihak yang berhubung
rapat dengan pembayar cukai perlu bertanggungjawab membantu
kerajaan dan LHDNM dalam memberikan penerangan kepada
pembayar cukai berkaitan sistem percukaian dan perkhidmatan baharu
yang diperkenalkan sebagai kemudahan kepada pembayar cukai.
1.5 Dalam mesyuarat ini, isu-isu berkaitan operasi yang dikemukakan oleh
badan profesional dan badan pengamal percukaian ini telah di semak
dan di buat penambahbaikan bagi melancarkan lagi operasi percukaian
serta meningkatkan kecekapan sistem percukaian di samping
memudahkan urusan percukaian di pihak pembayar cukai dan ejen
cukai.
2. PERBINCANGAN ISU DAN MAKLUM BALAS LHDNM
2.1 Lampiran 1 – CTIM Memorandum On Compliance and Operational
2.2 Lampiran 2 – MICPA & CPA - Joint Operational Issues
2.3 Lampiran 3 – CTIM Memorandum On Compliance and Operational
(Additional Issues)
3. PERKARA BERBANGKIT
3.1 Lampiran 4 – Soalan dan Maklum balas Dibincangkan
4. PENUTUP
4.1 Pengerusi mengucapkan ribuan terima kasih kepada semua yang hadir
atas penglibatan dalam dialog ini yang memberikan manfaat kepada
kedua pihak iaitu LHDNM dan pengamal percukaian.
4.2 Pemakluman mengenai maklum balas Mesyuarat PEMUDAH – Doing
Business World Bank Ranking - Paying taxes
4.2.1 LHDNM akan mengeluarkan Garis Panduan Operasi Bil. 3 tahun
2019 untuk makluman dan rujukan pembayar cukai. Ianya
menjelaskan bahawa BNT yang diterima tidak akan di audit
kecuali memiliki kriteria berikut:
i. BNCP asal dikemukakan dalam tempoh yang ditetapkan
tetapi terdapat kesilapan pengiraan;
ii. BNCP diterima selepas tempoh yang ditetapkan;
iii. Terdapat kesilapan pengiraan cukai pada BNT; atau
iv. BNT diterima selepas tempoh 6 bulan yang dibenarkan
4.2.2 Secara dasarnya penjelasan dalam Garis Panduan Operasi
berkenaan akan membuat ranking LHDNM menjadi lebih baik
kerana salah faham di kalangan pembayar cukai bahawa
pengemukaan BNT akan menyebabkan mereka di audit.
4.2.3 Oleh kerana pengemukaan BNT adalah secara e-filing,
kesalahan pengiraan tidak akan berlaku dan LHDNM hanya
menyemak maklumat dan bukan mengaudit kes tersebut.
4.2.4 Diharap maklum balas kepada soal selidik boleh dibuat dengan
lebih telus dan adil serta ranking Malaysia akan menjadi lebih
baik.
4.2 Pengerusi menekankan supaya badan profesional mengemukakan isu
yang melibatkan prosedur operasi dan kelemahan sistem percukaian.
Manakala isu-isu kecil perlu diselesaikan di peringkat jabatan /
cawangan berkaitan. Langkah ini juga penting supaya permasalahan
yang berlaku boleh diselesaikan dengan kadar segera dan tidak perlu
menunggu mesyuarat ini yang hanya bersidang setahun sekali.
4.3 Beliau juga turut merakamkan penghargaan kepada pihak persatuan
yang telah memberikan input, cadangan dan maklum balas kepada
LHDNM melalui sesi ini. Mesyuarat ditamatkan pada jam 12.15 tengah
hari.
Disediakan oleh;
Sekretariat DESIRE, LHDNM
22 April 2019
+
MEMORANDUM ON COMPLIANCE AND OPERATIONAL ISSUES
15 February 2019
Prepared by: Compliance & Operations Working Group (COWG) Chartered Tax Institute of Malaysia
Memorandum on Compliance and Operational Issues
Page 2 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Contents
No. Compliance and Operational Issues Page No.
1. Part N of the Form C 2018 3
2. Paragraph 7.5.10 of the “Rangka Kerja Audit Cukai 2018” 4
3. Item R5b of Form e-C 2018 - Reporting Notification submitted
5
4. IRB website – contents in the “English” view does not mirror the “Bahasa Malaysia” view
6
5. Unavailability of bilingual guidelines and/or explanatory notes etc.
7
6. Individual leavers – Submission of documents to IRB branches for tax clearance
8
7. Individual leavers - Passport certification process to include submission of certified true statutory declaration letter
10
8. Prescribed exchange rate for individual income tax return for the year of assessment 2018 onwards
10
9. No re-grossing of payment made to the non-resident 12
10. Monthly Tax Deduction (MTD) for locum doctors 13
11. Form C 2017 – Set-off of Withholding Tax Deducted under the S.107A(1)(a)
14
12. myIDENTITY: Notification of updates of contact information (Correspondence address, Email and Mobile Number)
16
Appendix 1, 2, 3 and 4 17 - 23
Memorandum on Compliance and Operational Issues
Page 3 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
1. Part N of the Form C 2018
With reference to the attached IRB’s guidebook on Form C 2018, we noted that the
meaning of “related company for the purpose of reporting” (Part N of the Form C 2018)
is pursuant to Section 2(4) of the Income Tax Act 1967. [Please refer to Appendix 1]
S. 2(4) [Where companies in the same group]
Where—
(a) two or more companies are related within the meaning of section 6 of the
Companies Act, 1965;
(b) a company is so related to another company which is itself so related to a
third company;
(c) the same persons hold more than fifty per cent of the shares in each of two or
more companies; or
(d) each of two or more companies is so related to at least one of two or more
companies to which paragraph (c) applies,
all the companies in question are in the same group for the purposes of this Act.
S. 6 of the Company Act 1965 or S. 7 of the Company Act 2016
CTIM comments: We wish to get clarification on the meaning of “a company is so related to another
company which is itself so related to a third company” as per subparagraph (b) of Section
2(4). Please see the extract above.
Memorandum on Compliance and Operational Issues
Page 4 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Maklumbalas LHDNM For clarification of “a company is so related to another company which is itself so related to a third company” is as per subparagraph (b) of Section 2(4). Please refer to Examples 1 and 2 of paragraph 1.5 of Chapter 1, Malaysian Transfer Pricing Guidelines. Thus, all these companies in the examples will be considered to be in the same group in accordance with subsection 2(4) of the ITA. Further examples and explanation on this matter and other issues pertaining to the controls will be provided on the IRB website.
2. Paragraph 7.5.10 of the “Rangka Kerja Audit Cukai 2018”
With reference to the attached IRB’s “Rangka Kerja Audit Cukai 2018”, we noted that
paragraph 7.5.10 has stated as follows: [Please refer to Appendix 2]
Kes audit perlu diselesaikan dalam tempoh tiga (3) bulan (90 hari kalendar) dari
permulaan tarikh lawatan audit. Sekiranya kes tidak dapat diselesaikan dalam tempoh
tiga (3) bulan, pembayar cukai akan dimaklumkan oleh LHDNM.
CTIM comments:
We would like to seek clarification on whether to apply the three (3) months or 90 days
for audit case completion.
Maklumbalas LHDNM
Kes perlu diselesaikan dalam tempoh 3 bulan terhad kepada 90 hari kalendar. Pindaan
dalam Rangka Kerja Audit akan dibuat.
Memorandum on Compliance and Operational Issues
Page 5 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
3. Item R5b of Form e-C 2018 - Reporting Notification submitted
Kindly confirm our understanding that the purpose of this disclosure is to verify if the
taxpayer has complied with the notification requirements under Paragraph 6 of the CbCR
Rules, and that it is applicable to both reporting and non-reporting entities.
The English translation stating “Reporting Notification submitted” seems to imply that the
section applies only to “Reporting entities”.
CTIM comments:
a) Please confirm.
b) We would like to suggest to add in a box (option) for “Not relevant”.
Maklumbalas LHDNM (a) Reporting Notification submitted refers to both Reporting Entity and also Non-
reporting Entity. The C2018 handbook has been amended to give a more accurate explanation of R5 matters. Applicable amendments have been uploaded on the IRB website.
(b) Appropriate amendments pertaining to CbCR disclosure have been made in e-C 2019.
Memorandum on Compliance and Operational Issues
Page 6 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
4. IRB website – contents in the “English” view does not mirror the “Bahasa
Malaysia” view.
Certain updates (for example, Nota Amalan 4/2018) appear only if viewed via the
Bahasa Malaysia language view as follows:
English version
Bahasa Malaysia version
CTIM comments:
a) With reference to the above, we would propose for the IRB to include a link in the
“English” view so that taxpayers are aware of the update.
b) We also noted that some of the updates were not flagged on the IRB’s homepage
but instead hidden in the pull-down tab menus or in the web page document itself.
We would like to suggest to the IRB to display the updates on the homepage itself
so that taxpayers can be made aware of new information or updates.
Memorandum on Compliance and Operational Issues
Page 7 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Maklumbalas LHDNM
(a) Tindakan kemaskini halaman nota amalan telah dilaksanakan dan ambil maklum
akan perubahan-perubahan akan datang. LHDNM akan pastikan ianya selari
dengan perubahan bagi makluman Bahasa Malaysia dan Bahasa Inggeris.
LHDNM akan mengkaji sama ada cadangan CTIM boleh dilaksanakan sebagai
kaedah yang lebih mesra pengguna apabila mereka memilih untuk merujuk
dokumen dalam versi English yang dimuatnaik ke portal Hasil.
(b) Perkara baru akan dimasukkan dalam tab ‘Pengumuman’ / ‘Announcement’.
5. Unavailability of bilingual guidelines and/or explanatory notes etc. (Tindakan JOC)
The Form e-C explanatory notes (YA 2018) and many Guidelines issued are available
in Bahasa Malaysia only.
Given the number of multinational companies (MNC) operating in Malaysia, there are
many companies’ officers and/or directors required to sign off on documents, who are
foreigners and do not understand Bahasa Malaysia. Without the bilingual forms and/or
guidelines, the respective signatories would find it challenging as they would then be
required to sign off on documents which they do not comprehend.
CTIM comments:
We would like to request to provide the English translation for all Forms and Guidelines.
Maklumbalas LHDNM
Buku Panduan Borang C versi Bahasa Inggeris Tahun Taksiran 2018 telah dimuatnaik
ke Portal rasmi LHDNM untuk rujukan.
Memorandum on Compliance and Operational Issues
Page 8 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
6. Individual leavers – Submission of documents to IRB branches for tax clearance
There is no standard procedure across all IRB branches for submission of tax clearance
documents by either the tax agents or taxpayers.
Several IRB branches require taxpayers/tax agents to submit documents for tax
clearance at the general counter, whereas some require us to take queue numbers and
meet the assessment officer to submit the documents where the officer would review the
completeness of submission documents.
Additionally, we understand as part of the tax clearance process, the IRB officer may
require the taxpayer to furnish past year(s) records/documents for verification/audit.
Taxpayers and tax agents would be happy to cooperate to expedite the tax clearance
process. In relation to this, based on an encounter at the IRB Bangi branch recently, a
leaver taxpayer’s submission was rejected at the submission counter itself as all his prior
years’ Forms EA were not enclosed. Since the Garis Panduan Operasi Bil. 2 Tahun 2016
(GPHDN 2/2016) did not indicate that the individuals must furnish ALL prior years’ Forms
EA for tax clearance purposes, we would have expected the IRB officer to at least not
reject the submission and allow the taxpayer to separately submit the additional Forms
EA required.
CTIM comments:
We would like to request the IRB to clarify the standard procedure for submission of
documents for tax clearance by either the tax agents or taxpayers to minimise confusion
and allow tax agents to manage the resources required for submission of documents for
tax clearance.
Additionally, if the individual’s documents are complete per the SPC Guidelines No.
GPHDN2/2016 issued by the IRB, we would suggest the submission counter to accept
the submission document. Should the officer-in-charge require prior year documents,
they can contact the taxpayer/ tax agent representative for the documents.
Maklumbalas LHDNM
Mengikut subseksyen 83(3), ACP 1967 tanggungjawab majikan untuk memaklumkan
sekiranya pekerja berhenti kerja/bersara. Manakala subseksyen 83(4), ACP 1967
majikan hendaklah memaklumkan kepada KPHDN tidak kurang dari satu bulan sebelum
tarikh pekerja dijangka meninggalkan Malaysia.
Memorandum on Compliance and Operational Issues
Page 9 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Kaedah permohonan hendaklah dibuat oleh majikan kepada KPHDN mengikut tempoh
yang ditetapkan bersama-sama dengan dokumen lengkap yang dikemukakan ke
cawangan LHDNM yang mengendalikan fail cukai pendapatan pekerja atau ke
cawangan LHDNM yang berhampiran.
Berdasarkan kepada Garis Panduan Operasi Bil 2 tahun 2016, senarai semak
permohonan SPC seperti di Lampiran A hendaklah digunakan semasa mengemukakan
permohonan seperti berikut:
Rujukan : Garis Panduan Operasi Bil 2 Tahun 2016
Memorandum on Compliance and Operational Issues
Page 10 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
7. Individual leavers - Passport certification process to include submission of
certified true statutory declaration letter
Based on our previous liaison with the Jalan Tuanku Abdul Halim Branch (formerly Jalan
Duta branch), we understand that there is an internal circulation issued within the IRB
whereby with effect from 31 May 2018, it is mandatory for leavers whose passports are
certified by the Notary Public/ Commissioner of Oath to be enclosed with a copy of the
Statutory declaration letter duly signed by the individual and stamped by the respective
legal agency, failing which, the individual’s departure tax return will be assessed as a
non-resident although he is able to qualify as a resident. This practice is to be applied
across all IRB branches.
We have liaised with a few other IRB branches including Kuala Lumpur Bandar and
Petaling Jaya branches over the past 6 months and noted that each branch adopts a
different practice and some branches do not require the Statutory declaration letter.
CTIM comments:
We would suggest the standard process to be communicated to all taxpayers and
adopted across all branches to avoid confusion.
Maklumbalas LHDNM
Pengesahan yang dibuat ke atas dokumen perjalanan merupakan suatu medium untuk
membantu pembayar cukai yang tiada dokumen untuk pembuktian. Pengesahan
salinan pasport pembayar cukai oleh Notari Awam atau Pesuruhjaya Sumpah akan
dimasukkan ke dalam Garis Panduan Operasi yang baru dan boleh di dapati di Portal
Hasil untuk rujukan.
LHDNM akan mengeluarkan memo edaran ke semua cawangan untuk memaklumkan
kepada semua pegawai prosedur ini. Pegawai juga telah diingatkan semasa
Konvensyen Operasi Cukai baru-baru ini.
8. Prescribed exchange rate for individual income tax return for the year of
assessment 2018 onwards
We note from the IRB’s website that the IRB’s prescribed exchange rate for the year is
no longer available from 2018 <IRB Official Website> Home Page > Internal Link >
Foreign Exchange Rate>. Instead, only the monthly prescribed rates are available via a
link at the IRB’s website to the Jabatan Akauntan Negara Malaysia (JANM) website.
We had sought clarification from IRB Cyberjaya Unit Dasar Percukaian, who suggested
us to request for the average annual rates for 2018 from Bank Negara Malaysia (BNM)
or Ministry of Finance (MOF) if the average exchange rates for year 2018 are readily
available at their end.
Memorandum on Compliance and Operational Issues
Page 11 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Meanwhile, the abovementioned IRB officer has indicated that we should make do with
the exchange rates at the JANM’s website and suggested the following options when
preparing individuals’ annual income tax returns:
1. Use the monthly prescribed exchange rate for the month we prepare the tax return;
or
2. Use the monthly prescribed exchange rate for the month we submit the tax return;
or
3. Self-compute the average exchange rate for the year using the monthly rates
available; or
4. Convert the monthly foreign remuneration and each foreign expenses for tax relief
claims using the respective months’ prescribed exchange rates based on the month
payment received or made. [Note: Although this option is relatively most accurate,
this would be cumbersome for expatriates who receive monthly remuneration from
various countries and incur multiple expenses overseas over the year for tax relief
claims.]
As it turns out, we have faced pushbacks from IRB officers for tax returns prepared using
Option 1 and 2 above, while several other IRB officers have accepted it.
CTIM comments:
We would like to request the IRB to issue a guideline on the exchange rate to be used
by individual taxpayers to ensure consistency of the reporting from the taxpayer’s end
and the audit/verification at the IRB’s end.
Maklumbalas LHDNM
Kadar pertukaran matawang asing yang perlu digunakan pembayar cukai individu bagi
tujuan pelaporan borang nyata cukai pendapatan adalah kadar pertukaran matawang
asing monthly average basis bagi bulan Disember bagi tahun taksiran tersebut.
Kadar pertukaran matawang asing monthly average basis yang digunakan adalah
merujuk kepada Jadual Kadar Pertukaran Wang Asing yang dikeluarkan oleh Jabatan
Akauntan Negara Malaysia yang disediakan berasaskan kadar tukaran matawang oleh
Bank Negara Malaysia dan telah dimuatnaik ke Portal Rasmi LHDNM.
Memorandum on Compliance and Operational Issues
Page 12 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
9. No re-grossing of payment made to the non-resident
We refer to the Note to Example 15 under paragraph 12.1(b) of the Public Ruling (“PR”)
11/2018 on Withholding Tax on Special Classes of Income as follows: –
Note
Effective from the date of publication of this PR, where withholding tax under section
109B of the ITA is borne by a payer, the withholding tax is to be computed on the
gross amount paid to a non-resident. This means that the payment made to the non-
resident need not be re-grossed to determine the amount of withholding tax
CTIM Comments:
a) We would like to get the IRB’s written confirmation that the above Note also
applies to other WHT provisions in the ITA 1967.
b) Form e-C 2018 – Part M: Particulars of Withholding Taxes:
Where a payer is contracted to pay the full amount of the technical service fees
of RM150,000 to a non-resident in the 2018 basis period, and the payer also
undertakes to bear and pay the withholding tax to the DGIR within the stipulated
period, the amount to be disclosed in Part M of the Form e-C for the year of
assessment 2018 should be as follows:
Gross Fee = RM150,000
WHT remitted to the IRB = RM15,000
Net amount = RM150,000
However, when completing the above in Part M of the Form e-C 2018, the net
amount is automatically calculated as RM135,000.00 instead of RM150,000.00.
We would suggest to the IRB to remove the auto-formula in the system, so that
the taxpayer may key in the amount manually.
Maklumbalas LHDNM
(a) Ya, layanan ini terpakai kepada mana-mana bayaran yang tertakluk kepada cukai
pegangan di bawah peruntukan seksyen 109, 109A dan 109F.
(b) Cawangan Tidak Bermastautin bersetuju dengan cadangan CTIM.
Pindaan sistem e-Filing e-C 2018 telah dilakukan pada 15 April 2019. Pengguna
perlu input manual amaun Jumlah Bersih Dibayar.
Memorandum on Compliance and Operational Issues
Page 13 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
10. Monthly Tax Deduction (MTD) for locum doctors
During MTD audit, some IRB officers instructed employers to pay MTD for locum doctors
whom are not employees, even though these locum doctors have fixed working hours.
[Please refer to Appendix 3]
CTIM Comments:
In our view, locum fee paid to the doctors should not be subject to MTD as these doctors
are self-employed (contract for service) and not an employee (contract of service).
Please confirm.
Maklumbalas LHDNM
Persoalan sama ada bayaran kepada ‘locum doctors’ tertakluk kepada Potongan Cukai Berjadual (PCB) adalah bergantung kepada ‘nature of relationship’ antara ‘locum doctors’ dengan klinik/hospital. ‘Nature of relationship’ ini bermaksud sama ada khidmat ‘locum doctor’ ini berdasarkan kepada ‘contract of service’ atau ‘contract for service’. Sekiranya wujud ‘contract of service’ antara ‘locum doctor’ dengan klinik/hospital, maka bayaran kepada ‘locum doctors’ adalah tertakluk kepada PCB.
Kajian dijalankan ke atas praktis di Malaysia apabila sesebuah klinik / hospital
memerlukan khidmat locum doctor. LHDNM akan memberikan maklum balas kepada
kajian dan amalan praktikal oleh klinik dan hospital dan memastikan layanan cukai
sewajarnya di ambil kira dalam pengiraan PCB.
Mesyuarat bersetuju dengan cadangan CTIM dan proses kerja dalaman perlu
dikemaskini serta perlu dimaklumkan kepada semua pegawai audit PCB. Secara
umumnya, layanan cukai adalah bergantung kepada nature of relationship sama ada
berdasarkan lantikan atau kontrak perkhidmatan.
Memorandum on Compliance and Operational Issues
Page 14 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
11. Form C 2017 – Set-off of withholding tax deducted under the S.107A(1)(a)
We refer to the IRB’s response in item 6 on page 8 of the IRB’s Minutes of DESIRE
Dialogue on 17 April 2018 as follows:
Memorandum on Compliance and Operational Issues
Page 15 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
CTIM Comments:
We would like to follow up on the above matter for further updates or clarification.
Maklumbalas LHDNM
(a) Pihak LHDNM berpandangan usul ini tidak memerlukan pindaan akta.
(b) dan (c)
Pihak LHDNM secara prinsipnya bersetuju dengan cadangan formula yang diberikan
tertakluk kepada perbincangan lanjut bersama wakil CTIM pada 19 April 2019.
Cadangan pengiraan bagi pengenaan kenaikan cukai di bawah Seksyen 107C (10) ACP
1967 hanya melibatkan bayaran S107A sahaja.
(d) Pihak LHDNM berpandangan usul ini tidak memerlukan pindaan akta. Syarikat
bukan pemastautin masih perlu mengisi CP204/CP204A dan memilih ruangan
‘Pendapatan tertakluk sepenuhnya kepada Cukai Pegangan Seksyen 107A ACP,
sekiranya keseluruhan pendapatan syarikat tertakluk kepada cukai pegangan.
Pengemukaan CP204/CP204A ini adalah bertujuan untuk memaklumkan pihak LHDNM
berkenaan status syarikat seterusnya mengelakkan pengeluaran Notis CP205 dan notis
kompaun anggaran cukai ke atas syarikat tersebut.
Secara umumnya, mesyuarat bersetuju dengan cadangan CTIM. Walau bagaimanapun
Pengerusi minta pindaan akta dibuat dengan mengambil kira amalan sedia ada.
Perbincangan lanjut akan diadakan dengan pihak CTIM untuk mencari kaedah
penyelesaian terbaik.
Memorandum on Compliance and Operational Issues
Page 16 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
12. myIDENTITY: Notification of updates of contact information (correspondence
address, email and mobile phone number)
Our members raised concerns that they received emails from Jabatan Pengangkutan
Jalan (JPJ) and Jabatan Pendaftaran Negara (JPN) on notification of updates of contact
information via myIDENTITY’s initiative where the JPJ and JPN will use the contact
information updated through transactions with the IRB which consist of details like
addresses, email and mobile phone numbers for communication purposes.
Will notifications like JPJ summons which are not related to tax be also directed to the
tax agent’s address which is used as taxpayer’s correspondence address. [Please refer
to Appendix 4]
CTIM Comments:
The Institute is in opinion that tax correspondence address should only be meant for tax
related matters.
Maklumbalas LHDNM
myIDENTITY adalah satu inisiatif kerajaan untuk perkongsian maklumat dari agensi di
mana LHDNM adalah salah satu agensi yang terlibat. Walau bagaimanapun, maklumat
ejen cukai, seperti surat-menyurat, tidak akan dikemaskini sebagai maklumat terkini
pembayar cukai.
Pegawai LHDNM akan diingatkan agar menandakan alamat ejen cukai (tick box) agar
maklumat berkenaan tidak dihantar ke myIDENTITY untuk dikemaskini kerana
maklumat ejen cukai bukanlah maklumat peribadi pembayar cukai.
Memorandum on Compliance and Operational Issues
Page 17 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
APPENDIX 1
Part N of the Form C 2018 (please refer to item 1 on page 3 of this Paper)
Memorandum on Compliance and Operational Issues
Page 18 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
APPENDIX 2
Paragraph 7.5.10 of the “Rangka Kerja Audit Cukai 2018” (please refer to item 2 on
page 4 of this Paper)
Memorandum on Compliance and Operational Issues
Page 19 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
APPENDIX 3
Monthly Tax Deduction (MTD) for locum doctors (please refer to item 10 on page 12 of this Paper)
Memorandum on Compliance and Operational Issues
Page 20 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Memorandum on Compliance and Operational Issues
Page 21 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Memorandum on Compliance and Operational Issues
Page 22 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
APPENDIX 4 myIDENTITY: Notification of updates of contact information (correspondence address, email and mobile phone number) (please refer to item 12 on page 15 of this Paper)
Memorandum on Compliance and Operational Issues
Page 23 of 23
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected] / [email protected]
Malaysian Institute of Accountants
JOINT OPERATIONAL ISSUES
Jointly submitted by:
Malaysian Institute of Accountants (MIA) Dewan Akauntan Unit 33-01, Level 33, Tower A The Vertical, Avenue 3 Bangsar South City No. 8, Jalan Kerinchi 59200 Kuala Lumpur [Web] http://www.mia.org.my [Phone] + 60 3 2722 9200 [Fax] + 60 3 2722 9100
The Malaysian Institute of Certified Public Accountants (MICPA) No.15, Jalan Medan Tuanku
50300 Kuala Lumpur
[Web] http://www.micpa.com.my [Phone] + 60 3 2698 9622
[Fax] + 60 3 2698 9403
JOINT OPERATIONAL ISSUES
Contents Page 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
e-Filing of Form e-TC Late receipt of correspondences
1. Formula for Determination of MTD Based on the MTD Scheduler Table Unavailability of bilingual guidelines and / or explanatory notes, etc. Utilisation of tax credits against future tax instalment payments / tax payable to be automated Per diem allowances Section 91 of the ITA in relation to assessments and additional assessments in certain cases Section 103(1A) – Tax payable notwithstanding any appeal Section 112 of the ITA in relation to penalty imposed on late filing of return Appeals External body to handle complaints Use of Big Data technology for information gathering
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1. e-Filing of Form e-TC
Issue:
The Form e-TC has been released for the unit trust / property trust to file their tax return electronically from Year of Assessment 2018. The following issues faced by tax agents when filing the Form e-TC for Year of Assessment 2018 on behalf of its clients have been escalated to the IRBM’s officers through phone calls and emails have yet to be resolved.
i. Unable to insert a negative sign under “Pendapatan bersih tahunan
semasa” column
Previously, the system allowed the user to key in a negative figure
under the “Pendapatan bersih tahun semasa” column. Although the
negative sign “i.e., -” is not shown in the Form e-TC, the total is summed
up correctly.
The system no longer allows the user to key in a negative figure under
the above said column.
ii. Incorrect balance carried forward
The “baki hantar hadapan” of the Form e-TC will automatically become
zero if the amount of loss is greater than the amount of balance brought
forward under the “Pendapatan tidak diagihkan” column (see cells circled
in black in Appendix 1).
iii. Blank page
Sometimes, the first page of the Form e-TC will appear blank (please refer
to the 2 different Forms e-TC attached in Appendix 2).
Comment: As the issues cannot be resolved before the filing deadline, the tax agents have submitted the manual Form TC instead. It is hoped that the issues can be resolved quickly to encourage more taxpayers to file return forms electronically.
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Maklumbalas LHDNM i. & ii. Penambahan petak untuk tandakan nilai negatif hanya dapat dibuat
mulai Tahun Taksiran 2019.
Bagi Tahun Taksiran 2018, Jabatan Operasi Cukai mencadangkan
pengisian seperti berikut sebagai penyelesaian:-
Jika ada pendapatan – Masukkan amaun pendapatan
Jika kerugian – Isikan ‘0’.
iii. Masalah telah di kenal pasti dan tindakan pembetulan sistem telah dilakukan pada 2 April 2019. Pihak MIA & MICPA boleh memberi maklum balas semula jika masalah masih berlaku.
Semakan ke atas borang C, PT dan TA membenarkan ruangan untung rugi tahun semasa diletakkan amaun negatif. Oleh itu cadangan pindaan di atas boleh dilakukan seperti cadangan untuk penyeragaman dengan borang lain.
2. Late Receipt of Correspondences Fact of the case:
Despite the IRB’s notification that correspondences (except for service of notice under Section 145) to taxpayers will be sent via e-mail or fax if email is not available, late receipt of correspondences from the IRB via post is still happening. Details of the cases are appended in the table below and Appendix 3:
Maklumbalas LHDNM
Surat pertama: i. Ini merupakan kes pengeluaran surat tawaran PKPS bagi semua
kategori kod CMS PAM. ii. Kes diagihkan dalam CMS pada 18/12/2018 atas kod 0F,6 (Ada CP204
tetapi tidak dikenakan cukai). iii. Surat Tawaran PKPS bertarikh 19/12/2018 telah disediakan secara
manual mengikut format Memo JPC 27/11/2018. iv. Surat ini dihantar secara pos oleh Unit Pentadbiran. v. Penerimaan Surat mengikut rekod pembayar cukai adalah 14 Januari
2019.
Type of
Correspondences
IRB Branch Date of
Correspondence
Date of Receipt
Tax audit letters Cheras 29 November 2018 14 January
2019
SVDP letters Petaling Jaya 19 December 2018 14 January
2019
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Isu kelewatan penerimaan surat di pihak pembayar cukai adalah di luar kawalan kerana melibatkan pihak ketiga. Walau bagaimanapun, cadangan MIA untuk mengemukakan surat kepada pembayar cukai melalui emel/faks boleh dipertimbangkan jika maklumat terkini pembayar cukai sentiasa dikemaskini sistem. Maklumbalas LHDNM Surat kedua:
i. Surat CP800 telah dikeluarkan pada 29/11/2018. ii. Surat telah dikemukakan ke Unit Mel/Pentadbiran cawangan pada
30/11/2018 untuk dihantar ke Pos Malaysia. iii. Pihak Unit Mel cawangan menghantar surat berkenaan pada hari
berikutnya. iv. Proses kerja Unit Mel cawangan, surat-surat akan dihantar setiap hari
ke Pos Malaysia. v. Tiada rekod atau senarai dibuat bagi penghantaran surat biasa kerana
bilangannya yang tinggi.
Cadangan untuk mengelakkan kelewatan penerimaan surat di masa hadapan oleh pembayar cukai, surat akan dikeluarkan melalui emel oleh pihak pegawai cawangan. Pengenalan MyTax dan semua urusan akan dihantar melalui emel kepada inbox pembayar cukai. Pembayar cukai wajib mengisi maklumat alamat e-mel di e-Filing.
3. Formula for Determination of MTD Based on the MTD Scheduler Table Presently the formula for determination of MTD based on the MTD Scheduler Table allows for the deduction of contributions to approved provident subject to the maximum combined life insurance and EPF relief allowed. With the segregation of the income tax relief on contributions to approved funds up to RM4,000 and income tax relief on takaful contributions or payment for life insurance premiums up to RM3,000 with effect from Year of Assessment 2019 onwards, the Institutes would like to propose for the IRBM’s consideration to include the deduction for takaful contributions or payments for life insurance premiums into the formula to minimise tax refund cases for individual taxpayers. Maklumbalas LHDNM Disarankan supaya menggunakan Kalkulator PCB yang terdapat di Portal Rasmi LHDNM bagi menggantikan penggunaan Jadual PCB. Kalkulator PCB boleh mengambil kira potongan sumbangan takaful atau bayaran premium insurans nyawa.
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4. Unavailability of bilingual guidelines and / or explanatory notes etc. The Form e-C explanatory notes (YA 2017) and many Guidelines (e.g. RPGT Guidelines) issued are available in Bahasa Malaysia only. Given the number of multinational companies (MNC) operating in Malaysia, there are many companies’ officers and/or directors required to sign off on documents, who are foreigners and do not understand Bahasa Malaysia. Without the bilingual forms and/or guidelines, the respective signatories would find it challenging as they would then be required to sign off on documents which they do not comprehend. We would like to propose for the Inland Revenue Board of Malaysia (IRBM) to consider issuing all the forms and/or guidelines in English as well to attract foreign investments. Maklumbalas LHDNM Nota Penerangan Borang C versi Bahasa Inggeris Tahun Taksiran 2017 tidak dikeluarkan. Walau bagaimanapun, Buku Panduan Borang C versi Bahasa Inggeris Tahun Taksiran 2018 telah di muat naik ke Portal Rasmi LHDNM untuk rujukan. 5. Utilisation of tax credits against future tax instalment payments / tax payable to be automated Currently, applications for the utilization of tax credits against future tax installment payments / tax payable are done manually, by sending in letters (via post and e-mails) to the IRBM, and/or lodging in the applications at the IRBM’s counter. This is a time consuming process as taxpayers would be required to follow up with the IRBM officers on the approvals, or travel to the IRBM’s office to lodge in the application. We would propose for the IRBM to consider automating this process. For example, taxpayers can be provided an option to automatically utilize the tax credits against future tax installment payments / tax payable, by indicating their intent to do so via an online portal (e.g. Form e-C etc.). Maklumbalas LHDNM Pihak LHDNM tidak bersetuju dengan cadangan ini dan tidak akan melaksanakan secara automatik kes penggunaan kredit cukai bagi menyelesaikan ansuran berikutnya. Pihak kami akan membuat bayaran balik atas amaun kredit yang wujud.
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6. Per diem allowances
The Institutes propose that the IRBM publish the per diem allowance rate (by countries) on its website after consultation with employers. With this, only the per diem allowance paid in excess of the published rate is reportable as income in the Form EA. This will create more certainty and simplicity in tax compliance under the SAS. This new tax treatment on per diem allowance has been adopted in Singapore with effect from YA 2005. Maklumbalas LHDNM Perkara ini memerlukan pindaan kepada peruntukan Akta dan ianya memerlukan kajian lanjut untuk pembuat polisi iaitu Kementerian Kewangan membuat keputusan. LHDNM akan membuat kajian lanjut mengenai perkara ini.
7. Section 91 of the ITA in relation to assessments and additional
assessments in certain cases The Director General (DG) can issue an assessment based on the ‘best of DG’s judgement’ without providing any grounds for the assessment. The Institutes are of the view that to enable taxpayers to submit a detailed appeal, a provision should be incorporated to require the DG to provide the computation and grounds for its adjustments giving rise to the additional tax. It is also proposed that this be extended to Real Property Gains Tax cases. Maklumbalas LHDNM Taksiran yang dibangkitkan berdasarkan best of DG’s judgement oleh LHDNM adalah berdasarkan justifikasi atau asas-asas tertentu. Pembayar cukai boleh mendapatkan justifikasi atau asas tersebut dari LHDNM dan diberi ruang untuk membuat bantahan/rayuan berhubung taksiran yang dibangkitkan ini. Oleh itu, LHDNM berpandangan tiada isu berbangkit berhubung perkara ini.
Jika terdapat kes-kes berbangkit, mohon pihak insitusi memberikan maklumat tersebut kepada LHDNM untuk disemak Perenggan 7.5 Rangka Kerja Audit Cukai 2018 telah menyatakan dengan jelas bahawa surat pelarasan cukai dan notis taksiran akan dikeluarkan untuk kes audit yang melibatkan pelarasan cukai. Ini termasuklah kes audit yang melibatkan taksiran anggaran / best of DG’s judgement’. Sekiranya tiada pelarasan cukai, surat memaklumkan tentang penyelesaian audit tanpa pelarasan akan dikeluarkan.
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Rujukan terperinci kepada:
7.5.4 Pembayar cukai akan dimaklumkan mengenai penemuan audit yang meliputi perkara-perkara berikut:
a) isu-isu audit yang dibangkitkan;
b) sebab dan rasional isu-isu yang dibangkitkan; dan
c) jumlah cadangan pelarasan cukai dan penalti (jika ada) dan tahun-tahun taksiran yang terlibat.
7.5.5 Sekiranya terdapat pelarasan cukai, surat pemberitahuan cadangan pelarasan cukai yang terperinci dan sebab-sebab pelarasan dibuat akan dikeluarkan. Pembayar cukai akan diberi peluang untuk memberi maklum balas dan penjelasan berkenaan dengan penemuan audit dan cadangan pelarasan cukai yang dikemukakan. 7.5.6 Jika pembayar cukai tidak berpuashati dengan cadangan pelarasan cukai yang dibangkitkan, pembayar cukai boleh membuat bantahan secara rasmi dalam tempoh lapan belas (18) hari dari tarikh surat pemberitahuan pelarasan dengan mengemukakan maklumat tambahan dan bukti-bukti untuk menyokong bantahannya. 7.5.9. Seterusnya notis taksiran cukai atau pemberitahuan tidak kena cukai akan dikeluarkan. Sekiranya tiada pelarasan dibuat, surat memaklumkan tentang penyelesaian audit tanpa pelarasan akan dikeluarkan.
8. Section 103(1A) – Tax payable notwithstanding any appeal Presently, under section 103(2), the tax payable under an assessment or
increased assessment, shall on the service of the notice of assessment or
composite assessment or increased assessment, as the case may be, be due
and payable notwithstanding any appeal.
There are instances where the raising of the abovementioned assessments a
long time after the time bar period has caused undue financial burden to
taxpayers. Moreover, the appeal process frequently takes several years to
complete giving rise to extreme financial hardship to taxpayers who finally won
the appeal.
For equity and fairness, the Institutes would like to propose that a mechanism be introduced in the ITA to allow the Courts to review the payment of such taxes based on the merits for raising such assessments.
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Maklumbalas LHDNM Pihak LHDNM tidak bersetuju dengan cadangan tersebut. Pembayar cukai telah diberikan ruang untuk membuat rayuan jika tidak berpuas hati dengan taksiran yang dibangkitkan sehingga kepada peringkat Pesuruhjaya Khas Cukai Pendapatan (PKCP). Setiap taksiran yang dibangkitkan oleh LHDNM adalah berdasarkan merit masing-masing. Oleh itu, tidak timbul isu berkaitan taksiran dibangkitkan tanpa merit.
9. Section 112 of the ITA in relation to penalty imposed on late filing of return Based on the Guideline on Imposition of Penalties under Section 112(3) of the ITA issued by the IRBM on 5 March 2015 (GPHDN 1/2015), the penalty rates for late filing ranging from 20% to 35% will be imposed on tax payable depending on the delay in filing. The penalty rates would appear to be inequitable and unfair in cases where taxes have already been paid (i.e. monthly tax instalments), given that in such instances, there is no economic loss to the Government. Due regard should be given to the tax instalments which have already been paid, and as such, the penalties should be imposed only on the amount of tax that is outstanding. The penalties should also reflect the taxpayer’s record of default and not just the delay in submission – e.g. penalties could be increased in line with the number of occasions that a taxpayer has defaulted in lodging its returns. Note: We understand that the IRBM is currently looking into this. Maklumbalas LHDNM Kaedah pengiraan penalti di bawah subseksyen 112(3) ACP 1967 mengambil kira bayaran pendahuluan bagi tahun berkenaan mulai 1 Januari 2019. Kadar penalti yang dikenakan ke atas kategori pembayar cukai di bawah seksyen 77 dan 77A ACP 1967 adalah berdasarkan tempoh masa yang diambil untuk mengemukakan BNCP selepas tarikh akhir pengemukaan. Tempoh kelewatan akan diambil kira dari tarikh akhir pengemukaan jika BNCP gagal dikemukakan dalam tempoh tambahan/lanjutan masa yang dibenarkan.
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10. Appeals (a) The Institutes strongly urge the Authorities to review the composition of
the Special Commissioner of Tax (SCIT), a tribunal which handles tax
appeals. We are of the view that the tribunal must have more than one
panel in order for justice to be served.
In addition, for the timely disposal of appeals, the Institutes would like to
propose for a review of the timeframe for disposal of appeals (made via a
Form Q) by the DGIR to be reduced to a period of 6 months.
(b) The Dispute Resolution Department of the IRBM is responsible for hearing
and considering appeals by taxpayers before their cases are presented to
the Special Commissioner of Income Tax. The dispute resolution process
could be enhanced to allow more appeals to be covered with a view of
resolving the cases before the case is heard by the SCIT. This would give
space for the parties involved to achieve the best solution and save time
and cost.
To expedite the dispute resolution process, the Institutes would like to propose that the Authorities consider appointing a representative from the private sector to share his/her practical experience so that more cases can be resolved efficiently.
Maklumbalas LHDNM
(a) Under the Act, SCIT is allowed to have more than one panel. But the challenge is on the insufficient number of commissioners appointed. However, this issue is best addressed by MOF as the IRBM is not involved in the appointment of commissioners. Alternatively, the MOF should consider appointing commissioners other than officers from AG Chambers.
In order for both parties (IRBM and taxpayers) to come to an out of court settlement, a reasonable time period is needed. Based on the Dispute Resolution Department’s record, taxpayers will normally optimize the full 12-month period before agreeing to settle their appeal with an out of court settlement. Therefore it is of the view of this department that the 12-month period is necessary to encourage taxpayers to agree with IRBM.
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(b) Based on the Dispute Resolution Department’s record, all requests for dispute resolution proceeding by taxpayers have been entertained by the Department. In fact there have also been cases where the Department had initiated dispute resolution process to effectively resolve disputed matters in a timely manner though there was no request made by taxpayer.
Record shows that the department had disposed of appeals effectively and efficiently. Therefore it is not necessary to appoint a representative from the private sector as part of the dispute resolution panel.
11. External body to handle complaints
In Australia, all complaints are made to the Inspector General of Taxation (Previously handled by the Commonwealth Ombudsman), a body that is separate from the Tax Authority who would conduct an independent investigation. Refer to https://igt.gov.au/making-a-complaint/ for more information.
The IGT covers a broad range of complaint areas including mishandling of queries, mistreatment by officers etc., The IGT prepares a report each year and this is published and made available to the Parliament and the General Public.
Malaysia may implement the same to encourage transparency and
improving the service standard of the IRBM.
Maklumbalas LHDNM 1. Pengurusan Aduan Integriti berhubung salah laku Pegawai LHDNM
dikendalikan sepenuhnya oleh Bahagian Integriti, Jabatan Integriti & Pengurusan Risiko (JIPR) sepertimana yang diarahkan di dalam pekeliling dan garis panduan berikut :
a) Pekeliling Perkhidmatan Bilangan 6 Tahun 2013 : Penubuhan Unit Integriti Di Semua Agensi Awam yang dikeluarkan oleh Jabatan Perkhidmatan Awam (JPA)
b) Garis Panduan Pengurusan Unit Integriti Agensi Awam Tahun 2019 yang dikeluarkan oleh Suruhanjaya Pencegahan Rasuah Malaysia (SPRM).
2. Aduan Integriti berhubung salah laku Pegawai LHDNM boleh disalurkan melalui kaedah-kaedah berikut:
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a) Tab khas di Portal Rasmi LHDNM Web www.hasil.gov.my >Hubungi Kami > Maklum Balas > Laporkan Salah Laku Pegawai
b) Emel atau Surat aduan terus kepada Ketua Pegawai Integriti (CIO) LHDNM.
c) Talian terus kepada CIO LHDNM. d) Temujanji dengan Pengarah Bahagian Integriti di JIPR.
Bagi tujuan pemantauan aduan, langkah-langkah yang diambil oleh LHDNM adalah seperti berikut :
1. Menyediakan tab khas untuk saluran aduan di Portal Rasmi LHDNM
2. Pemantauan Aduan berhubung dengan operasi percukaian adalah melalui :
a. LHDNM : i. Jawatankuasa Tetap Pengurusan Aduan peringkat Ibu
Pejabat ii. Jawatankuasa Aduan peringkat cawangan
b. Agensi luar :
i. Kementerian Kewangan - Mesyuarat pengurusan aduan peringkat Kementerian Kewangan
ii. Biro Pengaduan Awam – pantau segala jenis perkhidmatan kerajaan dan swasta
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12. Use of Big Data technology for information gathering Based on public announcements, the IRBM is currently embarking on a Big
Data initiative named ‘Hasil Power Data’ that envisages the application of Big
Data in taxation in line with the development of technology and digitalisation.
Hence, it is suggested that IRBM be granted access (albeit in a limited manner)
to relevant data from other agencies, bodies and financial institutions such as
from the Royal Malaysian Customs Department and the Companies
Commission of Malaysia to gain, verify and ascertain relevant information and
thereby reduce the need for site visits that may cause discomfort and deter
business operations.
It is suggested that the application of XBRL be done extensively throughout the industry including for filing purpose (similar to the system used in the Inland Revenue Authority of Singapore) that had proven to provide seamless tax filing and exchange of information between authorities and increasing the level of transparency. Maklumbalas LHDNM LHDNM sememangnya telah menggunakan data dari pelbagai agensi untuk meningkatkan kecekapan perkhidmatan dan mengintegrasi perkongsian maklumat. LHDNM akan memperkenalkan penghantaran Helaian Kerja Pengiraan Cukai dan penyata kewangan dengan menggunakan sistem pengemukaan XBRL yang dinamakan Malaysia Income Tax Reporting System (MITRS). Pelaksanaan XBRL dilaksanakan secara berperingkat mengikut entiti pelapor. Peringkat awal perlaksanaan akan melibatkan kes-kes syarikat yang terpilih untuk audit bagi mengemukakan Helaian Kerja Pengiraan Cukai dan penyata kewangan secara pilihan menggunakan MITRS. Pelan pelaksanaan MITRS telah dimuat naik di portal rasmi LHDNM untuk rujukan. Sistem MITRS telah dibuka untuk pengujian dan maklumbalas oleh orang awam bermula 15 April 2019.
MEMORANDUM ON COMPLIANCE AND OPERATIONAL ISSUES
(ADDITIONAL ISSUES)
29 March 2019
Prepared by: Compliance & Operations Working Group (COWG)
Memorandum on Compliance and Operational Issues (Additional Issues)
Page 2 of 5
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected]
Contents
Page No.
COMPLIANCE AND OPERATIONAL ISSUES
1 Appeal for lower tax estimate of less than the minimum 85% amount not allowed with effect from YA 2019
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2 Foreign Exchange (“Fx”) Rates 5
Memorandum on Compliance and Operational Issues (Additional Issues)
Page 3 of 5
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected]
1. Appeal for lower tax estimate of less than the minimum 85% amount not allowed with effect from YA 2019
Issues raised by member which is reproduced below:
We have received an email reply from one of the officers from Pusat Pemprosesan (Unit
Anggaran Cukai) with regards to one of our appeal for lower tax estimate cases for the year
of assessment (“YA”) 2019 whereby we were informed that Pusat Pemprosesan will not allow
any appeals for lower tax estimate of less than the minimum 85% amount with effect from YA
2019.
When we sought clarification from the Inland Revenue Board (“IRB”) officer, we were verbally
informed that there was an internal instruction given to them on 15 February 2019 on this
matter. Furthermore, she informed that effective from 15 February 2019, Pusat Pemprosesan
(Unit Anggaran Cukai) will only consider special revision applications after the 9th month of
the basis period of a year of assessment together with valid reasons and supporting
documents.
Furthermore, the IRB has not notified taxpayers on any change to their operational guidelines
(Garis Panduan Operasi Bil.1 Tahun 2017) dated 23 February 2017 which mentioned that
Pusat Pemprosesan would consider appeals for lower tax estimate less than the minimum
85% amount specified in Section 107C(3) of the Income Tax Act (“ITA”) 1967.
Additional verbal clarification obtained from the IRB:
The IRB officer in charge of CP204 in the IRB Tax Operation Department has confirmed that
the Guidelines on the submission of the estimated tax payable under Section 107C, ITA 1967
(Garis Panduan Operasi Bil.1 Tahun 2017) have been withdrawn from the IRB website in
order to revise the Guidelines accordingly.
The officer also confirmed that appeals for lower tax estimate of less than the minimum 85%
amount will not be allowed with effect from YA 2019.
According to the officer, no announcement will be made publicly on this matter for the time
being but the IRB will inform the professional bodies on this matter during a dialogue.
CTIM comments:
i. We hope that the IRB could reconsider the above by allowing any appeals for lower tax estimate less than the minimum 85% amount on a case to case basis, especially if the case is genuine and can be substantiated with documented evidence such as the following: -
Taxpayers who have incurred / projected current year business losses (e.g. due to loss of a particular project resulting in huge drop in revenue);
Taxpayers with carry forward business losses, sufficient to set-off against the current year business profits; and
Taxpayers who are in the process of closing down business and under liquidation or strike-off.
ii. We would also like to request the IRB to make an announcement if there is any withdrawal of guidelines etc. from the IRB website.
Memorandum on Compliance and Operational Issues (Additional Issues)
Page 4 of 5
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected]
Maklumbalas LHDNM
Berkuatkuasa daripada tahun taksiran 2006, anggaran cukai yang kena dibayar bagi sesuatu
tahun taksiran hendaklah tidak kurang daripada 85% anggaran cukai dipinda bagi tahun taksiran
sebelumnya. Jika tiada pindaan anggaran cukai dikemukakan, anggaran cukai tahun semasa
hendaklah tidak kurang daripada 85% anggaran cukai pada tahun taksiran sebelum.
Bagi syarikat yang baru memulakan operasi, syarikat boleh menentukan anggaran cukai bagi
tahun taksiran pertama mengikut anggaran keuntungan syarikat. Anggaran cukai pada tahun
taksiran pertama tersebut akan menjadi asas untuk menentukan anggaran cukai tahun taksiran
berikutnya.
Secara dasarnya, pembayar cukai dibenarkan untuk membuat pindaan anggaran cukai tetapi
oleh kerana jumlah pindaan anggaran cukai yang terlalu tinggi dari tahun ke setahun, LHDNM
tidak dapat membenarkan amalan ini berterusan. Pusat Pemprosesan Maklumat dimohon untuk
menyemak dan mempertimbangkan kes-kes tertentu dengan syarat dan proses yang lebih ketat.
Makluman ini akan disampaikan kepada pegawai yang terlibat yang mana ianya hanya
melibatkan pegawai di Pusat Pemprosesan Maklumat.
Memorandum on Compliance and Operational Issues (Additional Issues)
Page 5 of 5
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel: +603-2162 8989 Fax: +603-2162 8990, 2161 3207 Email: [email protected]
2. Foreign Exchange (“Fx”) Rates
The IRB used to provide the attached Fx Rates table on its website. The rates were provided for each YA, up to YA 2017. The IRB has ceased to provide the rates on a YA basis. In place of this, the IRB's website currently directs users to use rates from the Accountant General's (AG) website. The issue is that the rates from the AG's website are based on monthly rates.
CTIM comments:
Taxpayers should be entitled to adopt Fx rates from any credible sources such as Bank Negara, Accountant General and even the IRB. The law does not mandate taxpayers to adopt an IRB endorsed rate. However, as a practical matter, the IRB should clarify/state the specific purpose of the current monthly rates. The move from the former YA rates to the current monthly rates raises a practical confusion for those who have been and wish to continue to rely on rates given by the IRB.
Maklumbalas LHDNM
Kadar pertukaran matawang asing yang perlu digunakan pembayar cukai individu bagi tujuan
pelaporan borang nyata cukai pendapatan adalah kadar pertukaran matawang asing monthly
average basis bagi bulan Disember bagi tahun taksiran tersebut.
Kadar pertukaran matawang asing monthly average basis yang digunakan adalah merujuk
kepada Jadual Kadar Pertukaran Wang Asing yang dikeluarkan oleh Jabatan Akauntan Negara
Malaysia yang disediakan berasaskan kadar tukaran matawang oleh Bank Negara Malaysia dan
telah dimuat naik ke Portal Rasmi LHDNM.