Stop 'tax terrorism', DAP tells IRB

The DAP has called on the Internal Revenue Board (IRB) to stop what it describes as ‘tax terrorism’ and the targeting of small- and medium-size enterprises (SMEs).

“The IRB should prove that it is fair, impartial and upright in upholding the law without fear or favour by also investigating those who have made illegal ‘donations’ to BN or posseses extraordinary wealth,” said the party's secretary-general Lim Guan Eng (left).

The Penang chief minister says that he welcomes the IRB’s efforts to increase tax revenue through productivity gains and enhancing tax compliance.

However, this should not result in the carrying out of ‘tax terrorism’ against SMEs, including going after them for back taxes dating from more than six years ago, added Lim.

“In the interests of rule of law, any increase in tax collections should not come at the expense of unfair persecution of certain sectors only whilst letting off the politically connected ones,” he stressed.

No witch hunts, please

Lim said the IRB’s new-found commitment to go after tax evaders of all sorts should not degenerate into a witch hunt.

This includes using the Anti-Money Laundering Act 2001 to browbeat some of these SMEs into ‘settling’ the IRB’s outstanding claims, he added.

“The government should amend the Limitations Act 1953 so that its agencies such as the IRB are not given carte blanche to pursue tax claims without a statute of limitations,” said Lim.

“The six years which is currently being used as a statute of limitations for private companies to seek claims under the Limitations Act 1953 should also be used by the IRB,” he added.

“Consider giving SMEs an amnesty for the non-payment of back taxes from more than six years ago in order to help them through these tough economic times,” he stressed.