The use and abuse of taxes

 

The tax folks at Lembaga Hasil Dalam Negeri Malaysia are great. No, I haven’t gone mad, though if going mad is tax deductible, then yes, I’d happily declare that I have!

They’re very professional and efficient – maybe too much so. I wouldn’t mind if some of their notices come in a bit late, or even not at all, but nooooo, this thing about duty to the nation etc has to come in and spoil things.

I’ve no problem paying taxes (maybe I have gone mad after all). If it wasn’t for taxpayers’ money, I’d still be a poor fisherman scouring the coastal shallows of Penang for fish amidst the plastic and garbage.

Given the pollution and overfishing there though, I’d probably make more money from recycling thrash than from my catch.

Naturally I don’t approve of those who abuse our hard-earned taxes. May their karma turn them into chameleons. Or rot in hell, whichever comes first. They’re cruelly denying many poor fishermen the chance to climb up from the thrash heaps of this unfair life.

Here’s a simple calculus. Corruption in building a 100-bed hospital means it could’ve been a 150-bed hospital instead. The extra beds could’ve served a few thousand more people per year, and saved a few lives that would’ve otherwise been lost, or broken, by illness.

And also, this – corruption in building a school could’ve meant a few extra classrooms, which could’ve meant more people lifted out of poverty, and hence less fraudsters and petty thieves and drug addicts (and politicians) roaming around.

There’re also many Malaysians who pay taxes and get very little out of them because of the unjust nature of how so many things are done in Malaysia. They deserve better.

Our taxes aren’t too bad, unless you don’t believe in paying taxes at all. Politicians gorging on our taxes is a separate argument from our civic duty of paying taxes, even if it’s so easy to conflate them.

I’ve paid more taxes than I’ve consumed. Now I’m retired I’d be consuming a bit more of the taxes I’ve paid. Catch up with me at general hospitals soon queuing up for medicines. It’s cool to be Warga Emas, arthritis and weak bladder aside.

You’d have to pity the poor salary-workers though. Their taxes are deducted right on their payday. They can’t hide their money or convert it into condominiums or luxury watches or handbags like some do.

However, your tax money could still be converted into condominiums or luxury watches and handbags after you’ve paid your taxes. We have many Bosskus big and small and many spouses and minions who’ve shown us how that can be done.

This is actually a strong incentive for people to become entrepreneurs. Set up your own company (or foundation, or NGO) then do some tax avoidance. Or is it tax evasion? Ask an accountant – they’d love to explain the difference to you!

In the bigger struggle to find balance between rights versus responsibilities, I often wonder why didn’t people fix social engineering goals based on taxes paid? If the Bumiputeras end up paying 30% of the income taxes, wouldn’t that be a better proxy for success?

Equity ownership goals that we have mean a few powerful business and political cartels can steal everything. Many Ali Babas become filthy rich too, which doesn’t do much good for the other Alis, and for that matter the other Babas either.

Bad people may steal your wealth under the pretext of meeting some social engineering goals…but I doubt if they’d pay your taxes to meet those goals.

In Norway, everybody’s taxes are public information. Much as I hate people bragging about money, I’d make an exception for those who brag about how much money they have contributed to society.

It’s those rich but tacky, low-class people flaunting their undeclared wealth that I especially hate, especially if that wealth came from my taxes. So, to these people here’s a gentle reminder – you can’t just repent later in your old age unless you make restitution for what you have stolen, because I will never ever declare what you took from me as halal.

I’m careless and clumsy with my tax paperwork because I hate forms! But that’s more of my own personal phobia about filling up forms. I’ll try to be better but I offer no guarantees as long as I have to fill up forms!!

I feel we’re not treated with enough respect by the tax people though. Their correspondences to me always begin-

“Datuk/Dato’/Dato/Datin Sri/Datin/Tuan/Puan”. I hate coming up last (actually second last – Puan comes last), and I pity the others not included – Yang Mulia, Tun/Toh Puan, Tan Sris/Puan Sris…

Unless those people don’t pay taxes! Hmmmm. But here’s an easy compromise. Address everybody as Dear Taxpayer. I’d have no objection, and the other exalted people not mentioned won’t mind either. Assuming they pay taxes of course.

Or they could address us as Yang Berada, and when we reply we’d sign off as Yang Kurang Berada. During tough times we can sign off as Yang Tak Ada. When we’re late in paying our taxes, we can sign off as Yang Terlambat.

In my case, I’d be signing off as Yang Terlupa Isi Borang.

I attended an event at the tax HQ a few years ago, representing my employers as one of the top Malaysian corporate taxpayers. I thought we’d be feted like celebrities and young tax clerks would throw themselves at us.

Instead, we just watched tax bosses being announced over the speakers and entering the hall to thunderous ovation. It wasn’t quite an event meant for us taxpayers after all, even if the whole party was being paid for by our tax money.

It was a bit of a let-down. I returned to the office deflated and asked our chief accountant about our taxes and what we could do with it. This was when I learnt the difference between tax avoidance and tax evasion.

One is Yang Boleh, and the other Yang Tak Boleh. I, your humble Yang Terlupa, have forgotten which is which.

Anyway, I’ve sorted out my differences with the tax people that arose because of my aversion to filling up forms. I’m now no longer a nervous wreck every time I travel out of the country, nervously checking the list of blacklisted people to see if my name is one of those not allowed to leave the country.

I’m not rich enough to escape from being a tax resident of Malaysia, the way some people are. I have no problem with such people, unless they earn their wealth in Malaysia and then conveniently fly out of the country often enough so as not to have to pay Malaysian taxes.

To me, these people are only slightly better than those who directly steal our tax money, whether through outright corruption or some devious schemes camouflaged as national service. Pox onto them and any of their family or descendants who knowingly feast on our money.

Anyway, forget about that hint of defiance. Resistance is futile. You can’t win against the tax people, just like you can’t win against death and politics. And on that cheery note, Dear Taxpayers, have a great tax year ahead! - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.