by ANIS ZALANI / pic HUSSIEN SHAHARUDDIN
IN A bid to rework public notion and foster better taxpayer cooperation, Inland Income Board (IRB) has introduced a paradigm shift within the method of the tax administration to maneuver away from the standard picture of being solely an enforcement company and place itself as a tax administrator, in search of to alleviate the worry usually related to tax issues.
IRB CEO Datuk Mohd Nizom Sairi mentioned one of many important modifications launched is a revised penalty system for non-compliance or incorrect tax returns.
He mentioned the penalties fluctuate based mostly on the offense, with first-time offenders going through a 15% penalty, second-time offenders 30%, and subsequent offenses being topic to a forty five% penalty.
“This incremental penalty construction seeks to empathise with taxpayers, acknowledging that errors and errors can happen in the course of the submitting course of,” he mentioned at a discussion board organised by the World Sikh Chamber of Commerce Malaysia Chapter (WSCCM) in Kuala Lumpur right now.
Nizom mentioned the tax division acknowledges its accountability in offering clear tips and interpretations to taxpayers to rectify any lack of readability by releasing public statements concerning the remedy of sure expenditures.
By doing so, he mentioned the taxpayers could make knowledgeable selections and keep away from penalties ensuing from inadvertent non-compliance.
He mentioned the implementation of a real-time tax system performs a vital position in motivating taxpayers to proactively submit any pending tax returns or settle any remaining tax liabilities.
This, he mentioned, is as a result of the system particularly targets challenges related to the underground economic system and allows law-abiding taxpayers to rigorously assess their tax calculations and willingly contribute further taxes if mandatory.
“The initiatives provide a possibility to resolve disputes or underreported quantities with out being subjected to audits or investigations.
“The authorities will spend roughly 14 working days reviewing the submissions, guaranteeing accuracy and finality within the evaluation course of,” he mentioned
On e-invoicing, Nizom mentioned the system goals to revolutionise how companies conduct transactions and streamline the invoicing course of as it’s going to create a linked setting for companies, guaranteeing the real-time transmission of invoices and seamless validation by the income authorities.
He added that e-Invoicing is designed to simplify and expedite the invoicing course of for companies engaged in business-to-business (B2B) transactions.
“With this technique, companies will not have to manually generate, print and mail bodily invoices to their clients. As an alternative, invoices shall be generated electronically and despatched on to the shoppers by the platform.
“One of many key advantages of e-invoicing is the quick and environment friendly validation course of. When companies enter their invoices into the system, the income authorities will conduct a split-second validation to make sure the authenticity of the bill and its content material,” he mentioned.
He mentioned the validation contains verifying the genuineness of the issuer and recipient and confirming the presence of mandatory particulars and won’t disrupt regular enterprise operations.
Nizom mentioned the implementation of e-invoicing is anticipated to be carried out in phases, beginning with companies with an annual turnover of RM100 million beginning June 2024 and shall be expanded to incorporate companies with decrease turnovers and ultimately people.
Nizom mentioned they’re additionally exploring methods to include worldwide transactions into the e-invoicing framework to make sure a easy transition.
“The small print concerning worldwide transactions are nonetheless being labored out, however efforts are being made to incorporate them within the system to make sure complete protection,” he mentioned.
Nizom mentioned the rules for implementing e-invoicing are anticipated to be issued on Friday (July 21) to supply companies with readability on the procedures and necessities.
He mentioned it is part of their effort to cut back the casual sector and curb tax leakages by a extra environment friendly and clear invoicing system.
Led by Jalbir Singh Riar, a associate at Ernst & Younger Tax Consultants Sdn Bhd, WSCCM is a non-profit organisation for Sikh professionals.
In an entry on his Fb web page, Nizom mentioned the chamber is predicated on the ideas of omnipreneurship, taking up an entrepreneurial method to each facet of life, together with enterprise, household and neighborhood.
“Their visionary idea of balancing ‘Incomes, Sharing and Sustaining’ is unquestionably in step with the ideas of the sustainable growth objectives, of which taxation performs a significant position,” he wrote.