PAC: Raise individual tax arrears limit to RM10,000

PAC chairman Hasan Ariffin says the IRB must send a notice of tax arrears before travel restrictions are imposed. (Facebook pic)

KUALA LUMPUR: The Public Accounts Committee (PAC) has recommended that the government increase the tax arrears limit to RM10,000 for individual taxpayers before they are prohibited from travelling overseas by the Inland Revenue Board (IRB).

In a statement issued after tabling the report in the Dewan Rakyat yesterday, PAC chairman Hasan Ariffin said the committee felt that the current limit of RM2,000 was not suitable.

“PAC feels that the tax arrears limit of RM2,000 imposed by the IRB on individuals to restrict them from travelling abroad is not suitable to current economic conditions,” he said.

PAC also recommended that the tax arrears limit for companies be increased to RM50,000.

Hasan said the IRB must ensure that a notice of tax arrears is sent to the individual or company before the restriction is imposed, according to the practice of the Civil Service Department.

“The IRB delivery system for reminders of the tax arrears limit or restriction on overseas travel must be upgraded using new technology such as the short messaging system (SMS), WhatsApp, and e-mail.

“The IRB and Immigration Department must ensure that their databases are constantly updated so that there are no instances when the taxpayer has paid his taxes but still faces difficulty travelling overseas.”

PAC had held a proceedings meeting on the issue on March 27 last year after the findings of the Auditor-General’s Report 2015 Series 2 was tabled in Parliament on Nov 21, 2016. -FMT