BUKIT MERTAJAM: The Penang Inland Revenue Board (LHDN) has identified sole proprietorships as the group most commonly committing tax evasion in the state.
Its director, Norfaidah Daud, said to address the issue, LHDN will approach them and provide consultations through the Special Voluntary Disclosure Programme (PKPS) 2.0.
“According to the Penang LHDN records, sole proprietorships have the highest non-compliance rate and their accounts are not well-maintained compared to other types of businesses.
“We must rectify this situation so that this group pays taxes as prescribed by the regulations. That is why we are going to the ground through PKPS 2.0 to provide an explanation to them on tax payments,” she said.
She told reporters this after launching the “Lawatan Konsultasi Hasil” (LKH) 2.0 programme and flagging off the LKH convoy to visit companies and individuals in the state in conjunction with PKPS 2.0 at Menara Hasil in Bukit Mertajam today.
Norfaidah said the programme allows new and existing taxpayers to increase their tax compliance based on the AES (awareness, education, services) concept practised by LHDN while permitting them to voluntarily declare their income and ensure accurate and regular tax calculations.
Norfaidah said the LKH 2.0 initiative aims to create LHDN’s presence among industry players and understand business activities and the challenges.
It will run until Thursday. The convoy will visit 215 premises statewide.
“It also seeks to provide tax advisory services to taxpayers, facilitate legal action processes as well as promote the initiative,” she added.
Norfaidah said 958,743 taxpayers were recorded in Penang last year, with a tax collection totalling RM6.8 billion, making it the second state to collect the highest tax after Sarawak.
“We are targeting more than RM7 billion in tax collection this year.
“Last month, we contributed 4.78% of the country’s total tax collection. Last year, we contributed 3.87% of the country’s total tax collection,” she added.