Decision on deceased's tax arrears to be known in September

The decision on whether next-of-kin must pay tax arrears of deceased persons will be known by September, said Minister in the Prime Minister's Department (Religious Affairs) Mohd Na'im Mokhtar.

He said the matter will be discussed by the Muzakarah Committee of the National Council for Islamic Religious Affairs following a difference of opinion between two muftis, Penang Mufti Datuk Seri Dr Wan Salim Wan Mohd Noor and Pahang Mufti Datuk Seri Dr Abdul Rahman Osman regarding the matter.

The Panel of Syariah Experts at the Islamic Development Department Malaysia will also meet tomorrow to discuss the matter, Na’im (above) told the media after attending an event organised by the Federal Territory Islamic Religious Council Zakat Collection Centre in Putrajaya today.

Prior to this, Inland Revenue Board chief executive officer Mohd Nizom Sairi was reported to have said the next-of-kin of deceased taxpayers are fully responsible for their commitments including income tax management.

Section 74 of the Income Tax Act 1967 stipulates that any income tax arrears cannot be automatically written off even if the individual involved is certified dead.

Last May, a local newspaper reported a law requiring the legal representative or administrator of a deceased taxpayer's estate to pay the tax arrears left by the deceased, inviting the mufti of Penang and Pahang to give their contradicting view on the matter.

Penang Mufti Wan Salim Wan Mohd Noor is of the view that the tax arrears should be paid by the next of kin, while Pahang Mufti Abdul Rahman Osman said the next of kin to the estate of a deceased taxpayer does not need to do so.

- Bernama