The Inland Revenue Board (IRB) are amid efforts to ensure strict compliance from taxpayers this year in a bid to achieve their collection target of RM134.7billion.
IRB chief executive officer (CEO) Datuk Seri Sabin Samitah said income tax contributes between 50% and 55% to the country’s revenue, and that it helped finance the nation’s development policies and its citizens’ wellbeing.
“The board will make every effort to plug loopholes so that taxpayers cannot escape from paying taxes and this will help improve the rate of compliance,” said Sabin.
He said they are zeroing in on tax leakage from transfer pricing activities and the “underground economy” adapted by multinational companies, after 50 local and multinational companies in Labuan were found evading tax.
“Among the methods used by these aggressive taxpayers include mergers and acquisitions of companies and the manipulation of the Labuan Business Companies Act 1990,” he said.
Additionally, IRB will also focus on specific sectors such as banking, insurance and finance to achieve their target.
Sabin added there was a positive increase of 8.15% in terms of tax collection last year and the board will continue efforts to improve compliance rates.
“This positive improvement clearly illustrates the overall strategy of 2017 has been well-planned and implemented to bring the desired impact and effect,” he said, adding that Malaysia’s economic growth was also a main factor that had influenced compliance rates last year.
Meanwhile, IRB deputy CEO (compliance) Abdul Manap Dim assured the public that authorities will be fair and transparent following its approach to tracking down tax evaders.
Picture by The Star