Higher penalty for income tax dodgers next year

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KUALA LUMPUR: Beginning Jan 1 next year, the Inland Revenue Board (IRB) will impose a 100% penalty on the tax of individuals and companies dodging payment or filing incorrect income tax returns.

IRB chief executive officer Sabin Samitah said it would be the maximum penalty imposed as compared to the current 45% penalty imposed on offenders.

“For instance, if the individual or the company commits a RM1 million tax evasion, they should pay a RM1 million penalty, that is 100% of the value of the tax, as compared to the 45% penalty currently imposed.

“The 100% penalty can be imposed under the Income Tax Act 1967,” he told reporters after the launch of the “Operasi Gegar Bersepadu” (G127B) here today.

He hoped the higher penalty would bring awareness to individuals and companies on their responsibility of paying their income tax.

During “Ops G127B from April 10-14”, business trips and business census; delivery of travel restriction notices due to tax arrears; serving court notices and summons; as well as employers’ audit and monthly tax deduction audit will be carried out.