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Topic 10 Taxpayer Obligation - Coggle Diagram
Topic 10
Taxpayer Obligation
Self-assessment System
Taxpayers are required by law to determine, compute, and submit their tax returns and pay tax liabilities
Tax payers are required to:
Determine their taxable income
Compute their tax liabilities
Submit their tax returns based on tax laws issued by IRB
Pay the balance of tax liabilities
Subject to detailed checking by IRB?
Post-assessment tax audit would be conducted to verify the correctness of the tax
returns
Failure to submit tax return
Fine from RM200 to RM20,000
To imprisonment for a term not exceeding 6
months
Both
Assessment
Director General is deemed to have made an assessment on a person based on a
return furnished in accordance S77 or 77(a)
Additional Assessment
May be raised within 5 years after the end
of the YA if:
i) First assessment was inadequate and there is additional income subject to tax
ii) Over-repayment of tax
iii) Excessive set-off in the earlier assessment.
Reduced Assessment
Director General may make a reduced assessment where:
i) Taxpayer’s chargeable income is less than what has been assessed
ii) Relief to which the taxpayer is entitled had not been deducted
Composite Assessment
i) Defaults in providing a return
ii) Fails to give notice of chargeability;
iii) Incorrect return by omitting or understating any income
iv) Incorrect information in relation to any matter affecting their own
chargeability
Returns by an employer
Form E
Required to prepare and submit Form E to the Director General
not later than 31 March in the preceding year
EA. EC
Prepare each year to their employee a statement of remuneration by the end of February in the preceding year
Tax Audit
Desk Audit
Concerned
with straightforward issues or tax adjustments
Field Audit
Examination of the taxpayer’s business records