The Malaysian tax authorities, Inland Revenue Board (IRB) has, on Oct 19, introduced “Information Collection Program” which is aimed to support the enforcement and compliance activities conducted by IRB as well as providing information for tax base expansion.
What is this program about?
This is an enforcement and compliance programs conducted by the IRB through the collection of additional information such as information on various sources of income, information on acquisition and ownership of assets, information on membership of association/club and so on.
IRB is empowered under Section 81 of Income Tax Act, 1967 to request information from taxpayers, where IRB deems necessary.
Companies and individuals who are required to provide necessary information will be served a letter or notice pursuant to Section 81 of ITA 1967 and required to furnish relevant information in accordance with the prescribed formats (per softcopy set by IRB) below to the IRB offices within 30 days from the date of the said letter or notice. Application need to made to IRB if extension of time is required.
Prescribed formats (per softcopy set by IRB):
- Payments made to individuals or companies (recipients), e.g. commissions paid.
- Licensing and rental, e.g. information on property owners.
- Petrol station operators, e.g. information on petrol sales
- Customers information who receiving services like holiday tour packages, rental of luxury cars.
- Members information of associations, clubs or societies
- Owner of property assets
- Information on individuals or companies (buyers) who new properties such as residential houses, shophouses, office buildings, etc
- Information on individuals or companies (buyers) who buy new or used motor vehicles
