You will be barred from leaving the country if you have yet to settle your income tax or property tax (RPGT) from October 2013 onwards!

You may or may not aware that you have outstanding tax yet to be settled with LHDN due to reasons that you have not updated your latest address with IRB so the notification letter from IRB cannot reach you OR you are paying monthly PCB now and assuming the new PCB payment will pay off the outstanding tax. 

Taxpayers are told to contact the IRB to arrange for installment payment schemes, where necessary, on outstanding tax as stated in the notices based on the information provided for consideration.

The Inland Revenue Board of Malaysia (IRB or Lembaga Hasil Dalam Negeri) has issued media release on 2 October 2013 and announce that IRB will intensify its efforts to target taxpayers who fail to pay their outstanding tax debt with effective October 2013.


Media Release From IRB:

The following is the statement from the Release on the action to be taken:

“Following the issuance of a reminder letter and notice of outstanding tax to the tax defaulter, he/she will be prevented from leaving the country under Section 104 of the Income Tax Act (ITA 1967) 1967 and Section 22 of the Real Property Gains Tax Act 1976 (RPGTA 1976), unless and until he/she pays all the tax debts.”

The stoppage order is invoked only after various attempts to collect tax arrears have failed.

Therefore, in order to uphold the fairness of the tax system, IRBM has to take drastic measures to ensure that no one is excluded from carrying out their responsibility to meet their tax obligation.

Taxpayers are informed not to ignore notices of outstanding tax and are required to contact IRBM to arrange for installment payment schemes based on the information provided for consideration.

Taxpayers should understand that all tax collected will help the government to provide facilities and infrastructure according to the planned development programmes. IRBM believes that when a nation is successful, it makes the people feel good, where prosperous development can be shared with its citizens and future generations.

Read full details: Media Release From LHDN nbc-hot6


NOTES FROM NBC:

Section 104(1) of the ITA 1967 empowers the Director General of Inland Revenue (DGIR) to issue to any Commissioner of Police or Director of Immigration a certificate containing particulars of the tax, sums and debts so payable with a request for that person to be prevented from leaving Malaysia unless and until he pays all the tax, sums and debts so payable or furnishes security to the satisfaction of the Director General for their payment.

In the same way, Section 22 of the RPGTA 1976 empowers the DGIR to take similar action to prevent a person from leaving Malaysia until he/she pays all tax debts due to the government under that Act.

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