MCA against income tax changes

MCA says the amendment will give the Director-General of Income Revenue Board too much power.

KUALA LUMPUR: MCA has rejected the proposal to amend the Income Tax Act that would give the director-general of the Income Revenue Board “absolute power” over late or incorrect submissions.

The government proposed changes to Section 81 of the Act that would give the director-general power to allow or reject late submissions without leaving any avenue for recourse.

Currently, taxpayers can submit their case and bring their appeals to the court or a special commissioner.

MCA also criticised the proposed Section 107D that would also allow the director-general to compel taxpayers to make advance payments should they submit incorrect returns.

MCA president Dr Chua Soi Lek said the changes placed too much power in the hands of one person without room for appeal.

He said this will portray the government as not business-friendly and transparent.

“While we need to collect taxes, there must also be fairness to the taxpayer in terms of avenues of appeal.

“Taxpayers are not given the right to appeal against director-general’s decision… the amendments are not business-friendly,” he told reporters at the MCA headquarters today.

Chua said he would raise the issue with the party’s economic council, which meets every Monday, while other MCA lawmakers would do the same in Parliament.

Meanwhilem he said his party backed Putrajaya’s proposal to raise the retirement age to 60 provided that it introduced a mechanism to identify and eject the “under-performers” out of the system.

He also echoed the concerns of some lawmakers that the proposal would affect the promotion prospects for younger employers.

“Raising the retirement age must not affect youths entering the workforce and promotional prospects by virtue of older staff being retained,” he said.

Yesterday, Minister in the Prime Minister’s Department Nazri Aziz told Parliament that the issue does not arise as the government would be able to recognise talents pertaining to promotion matters.