Here is some advise for those people that like to leave doing their tax until the last minute, or feel as though it does not really matter what figures they put in.

TIP #1: Do not make up figures or take short cuts

Even though time may be short, or you simply do not like doing your taxes, this is not a reason to take short cuts. While using fictitious figues may seem to be a quick fix solution, it will ultimately cause you problems when the Tax man pays you a visit (which he is guaranteed to do). If you are found to be fabricating your returns by filling it up with all sorts of fantastic information, you could face huge fines if you are not able to substantiate it.

TIP #2: Check your math

Do yourself a favour and take a little time to check your result with a calculator/spreadsheet. While, the LHDN may be able to catch some calculation errors, there are many calculations that they will not. As a result you may end up either overpaying or underpaying. Overpaying your tax will leave you out of pocket, while underpaying will result in penalty payments.

TIP #3: Take advantage of all reliefs and deductions

If you are a resident Individual or Sole Proprieter, you have the opportunity to reduce your tax in many ways, provided that you are aware of them. By default the LHDN gives you reliefs for yourself that will reduce your taxable income. The question is, are you taking advantage of all the ways to reduce your income. If you are not, or even if you are unsure, you are likley paying too much tax.

TIP #4: Start thinking about next year….RIGHT NOW!

Many people make the fundamental mistake of only thinking about tax when they receive their return forms. In fact, it is too late to minimize your tax then. Instead you should familiarise yourself with the Tax system at the beginning of the year, this way you establish the habits and be in the best position to take advantage of the numerous ways to reduce tax.

TIP #5: Understand that you are not alone

There are many people that are willing and able to assist you. You simply need to know who they are and how to contact them. Infact you will likely find many people in www.taxkawan.com that will either be in a similar situation to you, or be able to assist you with the questions that you have.