IRB offering flexibility to cushion pandemic blow

 

The Inland Revenue Board (IRB) is offering some flexibility in terms of arrears and penalties for taxpayers whose income has been affected by the Covid-19 pandemic and the implementation of the total lockdown.

The IRB said the flexibility offered was deferment of payment of penalties related to their tax obligations to 2022, provided taxpayers continue to comply with the payment of the principal amount of tax payable.

The penalties enshrined in the offer are imposed under the Income Tax Act 1967, Property Gains Tax Act 1976 and Stamp Act 1949.

“It is aimed at easing the burden of taxpayers in settling their tax arrears and tax penalties,” IRB said in a statement today.

The IRB said it also made consideration of tax payment rescheduling applications for those who have lost their source of income or face issues in resolving tax arrears due to the total lockdown.

“There will be consideration of reviewing the penalty imposed if the taxpayer has a strong reason. Taxpayers are required to appeal against the penalties imposed, and the appeal will be considered on a case-by-case basis,” it said.

The IRB stressed that the relaxation given only applies to taxpayers whose income has been affected due to the pandemic and the total lockdown.

Unaffected taxpayers must continue to pay taxes, it said.

“Taxpayers who wish to apply are recommended to contact the IRB branch office that handles their income tax files,” it said.

The full version of FAQs is available here.

- Bernama