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COLLECTION AND RECOVERY OF TAX - Coggle Diagram
COLLECTION AND RECOVERY OF TAX
WAYS OF PAYING INCOME TAX LIABILITIES
Instalments
Section 107B: individuals
Section 107C: corporate taxpayers, limited liability partnership, trust body or co-operative society
Monthly tax deduction
Section 107: employees
Balance of tax payable to be paid by the due date (Section 103)
Companies, limited liability partnership, trust body, co-operative society: Seven months after FYE
Individuals: 30 June (w business income) & 30 April (w/o business income)
Any tax w any sum increased under amended tax return
SECTION 103
Section 103 (1A) - amended return
shall be due & payable on the day the amended return is furnished
Section 103 (11) - spouse's tax liabilities
where either spouse elects for joint assessments
penalty for late payment of tax: 10% of the tax outstanding
SECTION 107 (MTD)
marital status of employee
number of children qualify for reliefs
Offences & penalties
fine not exceeding RM20,000 or imprisonment for a term not exceeding 6 months or both
Failure to comply
not remitting the appropriate tax deducted to the Collector of IRB
not remitting the tax deducted by the 15th day of the following month
not deducting and remitting the correct amount
SECTION 107B (INDIVIDUALS)
taxpayers affected
all taxpayers other than individual taxpayers who are already paying tax under the MTD for employees
method of instalments payments
six bi-monthly payments
request for variation of instalment payments
must be made
not later than 30 June 2020
request will only be granted in respect of the amount for each instalments, changes in due will not be granted
instalments not sufficient
the excess must be settled by
30 April or 30 June of the following YA
penalties
late payment penalties
10% on that instalments
penalty for excessive differences
difference that exceeds 30% of the tax payable is subject to penalty of 10%
remittance slip
will be issued together with the notice of instalment payments
instalments payments must be accompanied by remittance slip
TAX PAYMENTS BY COMPANIES
TAX PAID IN EXCESS
will be refunded by Govt to the taxpayers
COMPENSATION FOR LATE REFUND OF OVER-PAYMENT OF TAX
a) Through e-filing: 90 days after the due date of submission of tax return b) Through manual: 120 days after the due date for tax return form
Amount of compensation = AxB/C*2% where A = amount to be refunded, B = number of days beginning from the 1st day after (a) and (b) above, until the day the amount is to be paid, and C = number of days in a year
RECOVERY OF TAX
where any person is about, or likely to leave Malaysia w/o paying their tax liabilities, including late payment penalty on any tax instalment, the DG may issue a certificate to the Commissioner of Police or Director of Immigration containing the amt of tax payable, and requesting that person to be prevented from leaving M'sia
may seize that person's passport or other travel docs
allowed to leave M'sia if:
a) produce a written statement signed on or after the date of the certificate by the DG or an authorised officer stating that security has been furnished for their payment
b) pay all the outstanding specified in the certificate to the officer in charge of the police station or to an immigration officer
Temporary release
taxpayer has made at least 50% of the amount of claim issued
payment by instalments for the balance of tax outstanding must be arranged and approved
LEGAL PROCEEDING
Taxpayer has failed to pay their tax after a notification of increase of income tax is issued to them
