SHOW OFF & WE’LL SHOW UP – MALAYSIANS GET WARNING FROM THEIR TAXMAN

PETALING JAYA – If you post any ostentatious display of wealth on social media, beware, the taxman is watching.

Officers from the Inland Revenue Board (IRB) are keeping a close watch for any signs of accumulated wealth beyond taxpayers’ income levels.

“We are constantly keeping tabs on social media accounts to detect any unexplained display of wealth,” Karen Koh, director of IRB’s large taxpayer branch, said at a dialogue between the board and KPMG on the Special Voluntary Disclosure Programme (SVDP) here today.

At the tabling of Budget 2019 on Nov 2, Finance Minister Lim Guan Eng said the IRB had been mandated with investigating “unexplained extraordinary wealth” of taxpayers.

Earlier, IRB chief executive officer Sabin Samitah said the SVDP was gaining good traction among taxpayers.

The programme offers an avenue for taxpayers to come forward and voluntarily declare any unreported income or over-claimed expenses for tax purposes.

The reduced penalty rates of 10% and 15% during the SVDP period – from Nov 3 last year to June 30, 2019 – is a motivation for the people to start afresh on their tax matters

Once the programme ends, the penalties can go as high as 80% to 300% on a case-to-case basis.

“It’s the desire of the government to encourage and instil the culture of voluntary tax compliance.

“This offer to start on a clean slate on tax matters is the right move towards achieving that,” Sabin said.

He said taxpayers need not doubt the sincerity of the government as they would not be audited again if they opted for the programme.

Any voluntary declaration made by taxpayers during the eight-month period would be accepted by IRB in good faith.

“We will not question you on the nitty-gritty and will assess your tax matters as declared. No questions asked, no reasoning required.

“The fundamental aspect of the Malaysian tax system is based on trust. That is the spirit behind any self-assessment regulated tax system,” Sabin said.

– FMT