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PUTRAJAYA: The Inland Revenue Board (IRB) will refund overpaid taxes for the latest assessment year, regardless of the previous years’ assessments of unpaid taxes.

Chief Secretary to the Government Tan Sri Sidek Hassan said taxpayers, whether Individuals or Companies, wold be reimbursed if they had overpaid for the assessment year 2006 even if the status of previous years’ taxes has not been resolved.

Refunds for assessments before 2006 would be calculated separately, he said.

This move was decided at the second meeting of the the Special Task Force to Facilitate Business (Pemudah) yesterday.

The IRB will also continue with last year’s policy of returning excess tax payments  without the taxpayer having to make an application to get back the money.

Taxpayers who use the e-filing method could expect refunds within 30 working days, Sidek added.

Other initiatives that Pemudah put forward to improve the public delivery system and enhance the country’s competitiveness include expediting  the registration of new businesses from three days to one hour.

At present, Malaysia ranked 71 out of 175 countries in the field of business registration, according to the World Bank’s Doing Business 2006 Survey.

The enhance Malaysia’s performance in this field, the Companies Commission of Malaysia had, among other moves, shortened the business license removal process from 1 day to 15 minutes and registration of deeds and prospectuses from 14 days to three.

Prime Minister Datuk Seri Abdullah Ahmad Badawi had given Pemudah a 6 month deadline from January to show results and “make a difference”.

The Tax Poem

 

Tax his land, tax his wage,
Tax his bed in which he lays.
Tax his tractor, tax his mule,
Teach him taxes is the rule.

 

Tax his cow, tax his goat,
Tax his pants, tax his coat.
Tax his ties, tax his shirts,
Tax his work, tax his dirt.

 

Tax his chew, tax his smoke,
Teach him taxes are no joke.
Tax his car, tax his grass,
Tax the roads he must pass.

 

Tax his food, tax his drink,
Tax him if he tries to think.
Tax his sodas, tax his beers,
If he cries, tax his tears.

 

Tax his bills, tax his gas,
Tax his notes, tax his cash.
Tax him good and let him know
That after taxes, he has no dough.

 

If he hollers, tax him more,
Tax him until he’s good and sore.
Tax his coffin, tax his grave,
Tax the sod in which he lays.

 

Put these words upon his tomb,
“Taxes drove me to my doom!”
And when he’s gone, we won’t relax,
We’ll still be after the inheritance tax.

 

–Author unknown

Isn’t it appropriate that the month when the taxes are due begins with April Fool’s Day and ends with cries of “May Day!”?

Do you ever wonder if automation will ever replace the taxpayer?If my business gets much worse, I won’t have to lie on my next tax return.

Drive carefully. Malaysia needs every taxpayer it can get.

Children may be deductible, but they are still taxing.

There is no child so bad that he/she can’t be used as an income tax deduction.

The path of civilization is paved with tax receipts.

The wealth of experience is one possession that hasn’t been taxed . . . .yet.

A fool and his money are soon parted. The rest of us wait until income tax time.

This country is as free today as it ever was. . . unless, of course, you happen to be a taxpayer.

Golf is a lot like taxes. You drive hard to get to the green and then wind up in the hole.

Some people think the government owes them a living. The rest of us would gladly settle for a small tax refund.

Our government really takes care of us. They even give us free income tax forms.

Everybody works for the government, either on the payroll or the taxroll.

The honeymoon is over when the bride begins to feel like she was never anything but a tax deduction to him.

Nothing makes a person more modest about their income than to fill out a tax form.

The income tax forms have been simplified beyond all understanding.

It’s too bad for the middle income person. They earn too much to avoid paying taxes and make too little to afford paying them.

It’s strange how a person with no sense of humor can come up with such funny answers on his/her tax return.

When making out your tax return, it’s better to give than to deceive.

I hate junk mail . . .and that includes the tax forms they send me.

When it comes to income tax, most of us would be willing to pay as we go if we could only catch up on where we’ve been.

An income tax return is like a girdle. If you put the wrong figure in it your are likely to get pinched.

After a man pays his income tax, he knows how a cow feels after she’s been milked.

The latest income-tax form has been greatly simplified. It consists of only three parts: (1)

How much did you make last year? (2) How much have you got left? (3) Send amount listed in part 2.

About the time a man is cured of swearing, another income tax is due.

Nothing has done more to stimulate the writing of fiction than the itemized deduction section of the income-tax forms.

If you want to get even with the income-tax people, get Junior to work out your tax return using the new math.

The average man knows as much about the atomic bomb as he does about his income-tax form.

Income taxes are not so bad and certainly could be worse.

What the present income-tax form needs is a section which would explain the explanations.

Some of us can recall the day when a person who had to pay income tax was considered to be wealthy.

Behind every successful man stands a woman and the IRB. One takes the credit, and the other takes the cash.

A harp is a piano after taxes.

A man admitted he lied on his income-tax return - he listed himself as the head of the household!

Life is one dodge after another - cars, taxes, and responsibilities.

The way the cost of living and taxes are today, you might as well marry for love.

Of course you can’t take it with you, and with high taxes, lawyer’s fees, and funeral expenses you can’t leave it behind either.

The reward for saving money is being able to pay our taxes without borrowing.

If science says nothing is impossible, how about a mechanical taxpayer?

Science has increased our life span considerably. Now we can look forward to paying our taxes at least ten years longer.

Taxation is a lot like sheep shearing. As long as you shear a sheep it will continue to produce a new crop of wool. But you can skin the animal only once.

When it comes to a tax reduction, never has so little been waited for by so many for so long.

We wonder why they call them “tax returns” when so little of it does.

The best things in life are still free, but the tax experts are working overtime on the problem.

I know a man who says he’s going to invest his money in taxes - it’s the only sure
thing to go up.

Old taxes never die - they just change their names.

Nowadays anybody who puts two and two together also has to add in the sales tax.

Death and taxes are inevitable, but death doesn’t repeat itself.

By the time you finish paying all your taxes, about all you have left is a receipt.

No matter how staggering the taxes, they never fall down.

Everything we have is taxed - even our patience.

I MUST congratulate LHDN for making it easier for taxpayers to submit their tax forms and also to make payments without having to go to the offices.   However, a visit is still essential to submit the dividend certificates to substantiate the claim for offsetting of tax deductions from the amount of tax that is payable.

It is now hoped that LHDN will also devise a system to ensure that tax credits and refunds are refunded with the same level of promptness.

These refunds are important to senior citizens who depend on returns from their savings and equity investments to take care of their daily financial needs in these days of rising cost of essentials and living.

GURSHARAN SINGH 

Kuala Lumpur

KUALA LUMPUR: Taxpayers failed to download digital certificates through the Inland Revenue Board’s (IRB) e-Filing system because service provider Digicert Sdn Bhd could not handle the amount of simultaneous web traffic.

The “delays” that took place a day after the e-Filing system for this year was launched resulted in taxpayers being unable to make submissions or download digital certificates.

Digicert chief executive Noor Azli Othman said contrary to what was reported in the newspapers, the system had not crashed.

“The system was still capable of producing digital certificates at that time,” he said.

“However, the delay occurred because there was a huge number of people making submissions and downloading certificates at the same time.”

Noor Azli said the bottleneck had now been fixed with upgrades made to software, storage capacity and hardware.

“The system is now able to handle more than 20,000 requests for digital certificates an hour.” (more…)

KUALA LUMPUR (March 27, 2007): The Inland Revenue Board’s (IRB) fairly new e-filing system had to endure a sluggish spell recently as it was - ironically - being upgraded to be faster. The e-filing system, introduced last year, suffered glitches on March 13 to 15 due to steps taken to ensure it is capable of accommodating more users.

IRB director-general Hasmah Abdullah said the problems were fully ironed out on March 21 and the public could now use the system more easily. (more…)

If you need guidance in filling out your Borang BE 2006, then look no further than the ‘Borang BE2006…The Simple Man’s Guide’.

This is an unofficial guide that can downloaded free from Taxkawan.com.  The key features of this guide are:

  1. Designed with the lay person in mind i.e. you do not need to know anything about Tax.
  2. It is done in plain English.  We have removed all the tax/Legal jargon to make it easier for you to understand
  3. Easy to follow mapping to the official Bahasa form
  4. Designed to allow each question/section to be completed independant of any of the other questions

To download the guide please click here Borang BE Guide 2006

Please let us know if you find this guide useful.


Chief Executive Officer/Director-general of Inland Revenue Board Malaysia, Hasmah Abdullah.

LEMBAGA Hasil Dalam Negeri (LHDN), or the Inland Revenue Board of Malaysia (IRB), was formerly known as Jabatan Hasil Dalam Negeri in 1947.

IRB has been in existence for over 60 years. Following IRB’s motto of being ‘friendly, helpful, (and) satisfying’, the total of 5697 employees display those qualities, and more. 71% of its employees make up the IRB counter and support staff whereas 28% of the staff are executives who are degrees holders and above. The main purpose of the Inland Revenue Board of Malaysia is to enhance the nation’s revenue, and ultimately become a world-class tax administrator.

One of the main revenue collecting agencies of the Ministry of Finance is the Inland Revenue Board of Malaysia.

The Department of Inland Revenue Malaysia became a board on March 1, 1996, and is now formally known as the Inland Revenue Board of Malaysia.

The Inland Revenue Board was established in accordance with the Inland Revenue Board of Malaysia Act 1995 to give it more independent capacity, especially when it comes to financial and personnel management; to improve the quality and effectiveness of tax administration. The agency is responsible for the overall administration of direct taxes under the following acts: Income Tax Act 1967, Petroleum (Income Tax) Act 1967, Real Property Gains Tax Act 1976, Promotion of Investment Act 1986, Stamp Act 1949 and Labuan Offshore Business Activity Tax Act 1990. (more…)

PETALING JAYA: Prime Minister Datuk Seri Abdullah Ahmad Badawi, who announced the scrapping of the real property gains tax (RPGT) from April 1, hopes the move would “inject more excitement and dynamism to both the property and financial sectors.” 

Speaking at Invest Malaysia 2007 yesterday, Abdullah said the abolishment of RPGT would improve the property sector.  

He said it was among the immediate measures intended to further increase and facilitate investments in the country. 

Property companies and analysts welcomed the news. They said it would benefit the sector, especially the high-end segment. 

OSK Securities analyst Mervin Chow told StarBiz: “We will definitely see an increase in the earnings prospects of property companies, either through an increase in demand or sales values. But it is very hard to quantify the extent at this juncture. 

“We will also see increased foreign buying interest in Malaysian properties.” 

Chow thinks the chief beneficiary would be higher-end developers with excellent locations. He said RPGT had in the past been one of the prime hurdles for foreign buyers, given the higher holding risk. 

“As for the mass residential market (low- to mid-end), the oversupply situation still persists, hence we will not be seeing much improvement there,” he said, noting that the removal of RPGT would encourage a more vibrant secondary market in this segment. 

“We will be seeing more interest in property companies with niches in the mid- to high-end market segment in the coming months. Although most of the counters have soared in anticipation of the abolishment, there are still many that are undervalued,” Chow said. 

Analysts expect increased foreign buying interests

His top property picks include United Malayan Land Bhd, Plenitude Bhd and YNH Property Bhd. 

Mah Sing Group Bhd managing director Datuk Leong Hoy Kum said: “It is heartening that the Government has been so proactive in promoting an investment-friendly regime to enhance local investment, and draw foreign direct investment to Malaysia.” 

He said Mah Sing would be a direct beneficiary of the RPGT abolishment, having established a premium branding for its lifestyle products in the Klang Valley and Johor Baru. 

“We are in the right segment and locations. The Government’s announcement is timely and we anticipate this feel-good factor will be an additional crowd-puller for our preview of Hijauan Residence this weekend.” 

Sime Darby Bhd property divisional director Jauhari Hamidi hailed the tax waiver as the “best news” for the property industry, homebuyers and investors, because it “will revive the market which has been soft in recent years.” 

“The abolishment will help create more excitement in the property market.  

“As for our newly-launched Ara Hill project, the move will encourage earlier upgrades among the growing affluent,” he said. 

Scomi Group Bhd chief executive Shah Hakim Zain said the move would further attract foreign investments, while former Road Builder (M) Holdings Bhd executive vice-chairman Tan Sri Chua Hock Chin said it would spark interest in the secondary property market. 

Sunway Group founder and chairman Tan Sri Jeffery Cheah said the move would help attract more foreign buyers to the group’s properties. 

Malaysian Resources Corp Bhd managing director Shahril Ridza Ridzuan told reporters that the scrapping of the property gains tax would encourage more secondary trading and liquidity in the secondary property market. 

And IJM Corp chief executive Datuk Krishnan Tan said the lifting of the RPGT would benefit property investors and developers would see improved demand for property. 

Tan did not expect an immediate impact on companies’ bottom line. 

Despite the mostly positive sentiment, some fund managers think the tax waiver could encourage speculation and increase property prices. 

They also said the lower income group could be hurt as it would be more difficult for them to own properties. 

A fund manager said: “Property prices could surge when speculative activities start. Lower income people could bear the brunt, especially if their salaries do not increase as quickly as property prices.”

MALACCA: The Malacca Customs Department has set a new target of RM1.1bil in tax collection this year. 

Its new director Mohd Rafdzi Maulud said it expected collection to exceed the RM989mil target set earlier in the year. 

He said the higher revenue is seen coming from more sales and service taxes collected by the department. 

Another reason was that more imported cars were being purchased and the department would be collecting more in excise duty, he said. 

To date, the Malacca Customs had already collected RM503mil in the form of service tax, sales tax and excise duty, he said. 

“To achieve the new target, we will carry out various operations,” he said after the hand-over of duty by former director Datuk Md Hassim Pardi at the state headquarters in Ayer Keroh yesterday. 

Mohd Rafdzi also said he would be meeting taxpayers to advise them to avoid delaying their payment of taxes.  

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