Beginning Jan 1 next year, the Inland Revenue Board (IRB) will impose a 100 percent penalty on the tax of individuals and companies dodging payment or filing incorrect income tax returns.
IRB chief executive officer Sabin Samitah said it would be the maximum penalty imposed as compared to the current 45 percent penalty imposed on offenders.
"For instance, if the individual or the company commits a RM1 million tax evasion, they should pay a RM1 million penalty, that is 100 percent of the value of the tax, as compared to the 45 percent penalty currently imposed.
"The 100 percent penalty can be imposed under the Income Tax Act 1967," he told reporters after the launch of the 'Operasi Gegar Bersepadu' (G127B) in Kuala Lumpur today.
He hoped the higher penalty would bring awareness to individuals and companies on their responsibility to pay their income tax.
During 'Ops G127B from April 10-14' , business trips and business census; delivery of travel restriction notices due to tax arrears; serving court notices and summons; as well as employers' audit and monthly tax deduction audit will be carried out.
-- Bernama
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