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Self Assessment System (Individual) (Tax investigation (Purpose The tax…
Self Assessment System (Individual)
Type of individual
With business source of income [Sole trader (Form B), Partnership (Form P)]
Without business source of income [Employees (Form BE)]
Basis period
Calendar year (1/1 to 31/12)
Submission of final tax return
With business source of income (By 30/6)
Without business source of income (By 30/4)
Fail to submit
A fine ranging from RM200 to RM20000 OR imprisonment not exceeding 6 months OR
both
How the tax payments are made?
1) Without business source of income
By way of the MTD scheme (Monthly deduction from the monthly remuneration)
2) With business source of income
The IRB will issue a notice of instalment (CP500) with 6 bi monthly instalments commencing in March
Each instalment has to be paid within 30 days from the due date
A late payment penalty of 10% will be imposed
Revised before 30/6
When to pay?
30/6 (With business source of income)
30/4 (Without business source of income)
Fail to pay?
10% after the due date
5% on the expiration of 60 days
Tax audit
Desk audit
Field audit
To ensure that the tax computation prepared by the tax payer are correct and comply with the tax laws and guidelines issued by the tax authorities
Duration = Within 5 years from the year of assessment
The taxpayer will be informed prior to a tax audit
If tax is found to be under-charged, a penalty may be imposed
Appeal
How?
By submitting a prescribed form (Form Q) or by way of writing to the Director General stating the grounds of appeal
When?
Within 30 days from the notice of assessment
Tax investigation
Purpose
The tax authorities have the reasons to believe that the taxpayer has committed a fraud or tax evasion
Period under investigation
Can go beyond 5 years not with standing that the taxpayer may not have the records
Penalty
If fraud is detected, a penalty of 300% (3 times) of the tax under-charged will be imposed
A surprise raid is usually conducted at the taxpayer's premises to seize all the records
Self amendment (If only there is an additional assessment)
When to amend? Within 6 months from the date of submission of the tax return
Penalty provision
Omission/Non-disclosure, Not providing reasonable facilities & assistance, Not keeping sufficient records (7 years)