MALAYSIAN TAXATION

TAX ADMINISTRATION & TAX MANAGEMENT

Chapter 27: Returns & Assessments

 

    

Intro: wef 1st Jan 2000, pay as you earn scheme Types of return B (resident individual), M(Non Resident), C(Companies), C1(co-operative societies), P (Partnership), T(Trusts), E (Employer) Types of assessment ; original, reduced, additional, composite, increased, advanced, protective Electronic filing (e-filing) With effect from YA 2008, taxpayers may authorize tax agent in writing to submit his return through e-filing. Time frame for submission WEF YA 2004, company, trust or co-operative society is required to submit their return within 7 months from closing of its accounts by virtue of s 77A(1). Companys year-end Latest to submit Form C 31st December 2008 31st July 2009 30th June 2008 31st January 2009

Chapter 28: Collection & Recovery

Intro: YA 2004, final tax to be paid together with the submission of returns.  Refund  Scheduler Tax Deduction (STD)  An employer is required to withhold tax under the PCB system. Each month, the employer is required to deduct appropriate tax of the employees and remit it to the tax authorities not later of 10th day of each calendar month in respect of tax in the preceding month.


Chapter 29: Self assessment for companies, trust bodies or co-operative societies
 

 

Intro: companies self assessment Y/A 2001 Self assessment furnish an estimate of income tax payable for YA in CP204 not later than 30 days before the beginning of the basis period (S107C(2)), S107C(3) estimate must not less than 85% of immediate preceding year Payment of monthly tax Receive CP204, issue CP205 and a monthly payments slips CP207 e.g. YE 31 Dec 2007, Installment begin 10 Feb 2007, Installment end 10 Jan 2008. Failure to pay installment on the 10th day will subject to a 10% penalty S107C(9) Revision of estimate S107C(7) YA 2003 revise CP204A in the 6th / 9th month (margin of error 30%) Penalties on underestimates of income tax payable S107C(10) 10%

Chapter 30: Appeals

     

Intro: rights to appeal to special commission Right to appeal S99(1) Submission of return within 30 days of the date of deemed notice of assessment Scope of assessment - issued by tax authorities Finality of assessment within time specified, the assessment shall be final and conclusive Appeals which are out of time S100; Form N extension of time to lodge appeal

Chapter 31: Penalties & Offences

  

 

Intro: to deter taxpayers from non-compliance Failure to furnish return or give notice of chargeability S112(1) Burden of proof S112(2) upon accused person acknowledge copy of receipt from tax authorities Defense reasonable excuse Procedures

Chapter 35: Self assessment for individuals

Intro: self assessment Y/A 2004.  Responsibility to keep documents S82 to keep documents 7 years, S82A employment income/investment income to keep documents  Failure to keep records: S119A fine 300 < x > 10,000, imprisonment not exceeding 1 year.  Submission of return



B: 30 June

BE: 30 April

 

Payment of income tax (S107B)



Scheduler Tax Deduction (STD) - PCB Submit before due date, DG shall be deemed to have made an assessment on the day the return is submitted.

Deemed assessment