IRB Chief Executive of the Inland Revenue Board Of Malaysia, Datuk Sabin Samitah. PIX: ADIB AIMAN ROSLI / MalaysiaGazette lost receipts penalties
Chief Executive of the Inland Revenue Board Of Malaysia, Datuk Sabin Samitah. PIX: ADIB AIMAN ROSLI / MalaysiaGazette

By Wan Noor Hayati Wan Alias

KUALA LUMPUR – The Inland Revenue Board (IRB) advised taxpayers to lodge police report if they lose their supporting documents for tax exemption to avoid penalties.

Chief Executive Officer of IRB, Datuk Sri Dr Sabin Samitah said, the IRB will take into consideration if the reasons given are due to natural disaster or things beyond control.

“Record keeping and documents need not necessary be done in physical form. It can also be kept digitally, scanned and saved in the memory of the computer, telephone or cloud computing service.

“It can overcome the problem of losing documents due to movements or destroyed in natural disasters,” he said in a statement to MalaysiaGazette.

Yesterday, MalaysiaGazette reported several complaints from taxpayers who said that they were slapped with penalties for not attaching receipts of purchase / services to get tax exemption.

Elaborating further, Dr Sabin said that the LDHN emphasizes on the concept of trust on the taxpayers to voluntarily report their income within the stipulated time determined by the Income Tax Act 1967 (ITA 1967), without the need of attaching supporting documents during tax declaration.

He said, that concept is in line with the Self Assessment System (SAS) where the taxpayers need not attach their income and tax exemption documents in the tax return form.

“To make taxation easy, the LHDN introduces the e-filing system since 2006, where the taxpayers can declare their tax online without the need of going physically to the IRB counters.

“Under the SAS practice, the taxpayers need to keep record of the documents on their tax for a seven-year-period as per Section 82 of the ITA 1967.

“Failure to keep record is an offence under Section 119A ITA 1967 and upon conviction, one could be jailed or fined,” he said.

Sabin added, the IRB is not an overly rigid agency. Taxpayers still have room to object or make their plea if they are unsatisfied with the assessment and penalties.

“Taxpayers can go to the IRB and they are given the opportunity to discuss and feedback about their taxation issues. They are welcome to go to IRB every Wednesday, Customers Day, as a platform to seek solution to their complaints.

“In the context of audit, it was not merely to seek fault but it is the best method to highlight the mistakes of taxpayers and to provide better understanding on taxation,” said that statement.

The IRB also welcomes any suggestion and it can be voiced through email to [email protected]. – MalaysiaGazette

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