INCOME tax refunds were delayed up to six years because of insufficient funds in the Tax Refunds Tax Fund (TRTF), a situation that was clearly conveyed to the previous government, revealed the Inland Revenue Board (IRB) director-general Sabin Samitah today.
During a monthly meeting, the IRB informed former Treasury secretary-general Mohd Irwan Serigar Abdullah of the shortage and requested additional allocations for the tax refunds, Sabin said in a statement today.
“IRB had informed him of the amount to be refunded to taxpayers and requested for additional allocation to be transferred to the TRTF.
“IRB had also written official to the Ministry of Finance (MOF) about the matter.”
However, Sabin did not disclose exactly when the request was made and whether MOF complied with IRB’s request.
“IRB confirms Finance Minister Lim Guan Eng’s statement that there was a shortage of funds in the TRTF,” he said.
On Wednesday, Lim dropped a bombshell when he revealed that the government had owed some RM16 billion worth of refunds to taxpayers.
The refunds, dating as far back as six years, were owed to companies (RM12.41 billion) and individual taxpayers (RM3.62 billion).
According to the IRB, RM4.6 billion of arrears date back to six years, RM3.5 billion (4-5 years), RM6.1 billion (2-3 years) and RM1.79 billion for one year.
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“Based on the limited funds in the TRTF, IRB prioritised refunds back to individual taxpayers. “Until 31 July, IRB has processed refunds for 90% of the individual taxpayers,” Sabin said in the statement.
He said IRB will consider applications to “set-off” the refunds against taxes payable for the current financial year.
“Taxpayers will have to make these applications at the IRB offices where their files are being kept.”
For those who don’t apply for the “set-off”, the refunds will depend on the availability of funds in TRTF, he said. – https://www.themalaysianinsight.com
IRB confirms RM16.046b unreturned tax refunds
PETALING JAYA: The Inland Revenue Board (IRB) today confirmed that the previous government did not return a total of RM16.046 billion in excess income tax and real property gains tax as at May 31, 2018 to taxpayers, mainly due to the shortfall in the Tax Refund Fund (TBBC).
This, it said, involves 1.65 million cases comprising companies, individuals, societies and foundations, with some refunds stretching back to six years.
Based on the latest position of TBBC, the priority of refund will be given to individual taxpayers. As at July 31, 2018, IRB already processed more than 90% of tax refund applications for the individual taxpayer category.
For other taxpayer category, the refunds still cannot be paid as there is no additional allocation for the fund. In line with the government’s wish to prosper the rakyat and in response to Finance Minister Lim Guan Eng’s proposition, IRB will consider allowing taxpayers with tax credit to be refunded by IRB, to be set-off against taxes that need to be paid for the current year. Taxpayers are required to submit the application for set-off to the respective IRB branch that handles their tax files.
For taxpayers who do not apply for their tax credit to be set-off, their refunds will be processed depending on TBBC allocation that is approved by the government and the nation’s financial position.
Taking into account the financial constraints due to the nation’s liabilities of over RM1 trillion, IRB said Lim is working to identify sources of income for the payment of refunds either this year or the next few years. – THE SUN DAILY
THE MALAYSIAN INSIGHT / THE SUN DAILY
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