SEREMBAN: Some taxpayers who made maximum exemption claims on their assessment forms will get letters from the Inland Revenue Board (IRB).

The IRB wants to make sure the exemption claims are genuine.

IRB chief executive Datuk Hasmah Abdullah said those who made maximum claims, such as for books or medical bills, would have to justify them by providing original receipts or other proof.

The IRB launched the self-assessment system (SAS) for individual taxpayers this year. Under the SAS, taxpayers need not submit receipts or other supporting documents when filing their returns.

Hasmah said if the taxpayer was unable to provide proof, the IRB would reassess his remuneration for the previous year. The taxpayer would then be asked to pay a higher tax.

“Actually, there is a penalty for those who are unable to support their claim under the SAS. But since this is the first year, we will not impose any fine.

“The individual may have made a mistake or may be ignorant of the law,” she said after opening the IRB’s 32nd annual games in Paroi near here.

She added that first time offenders were required to pay 15% more in taxes.

Repeat offenders, including businesses, could be fined a maximum of 45% of their income for the year.

Asked if the IRB had uncovered any fraud by companies which began declaring tax under the SAS since 2001, Hasmah said the board was investigating several cases.

On a separate matter, Hasmah said taxpayers would be able to check their account with the IRB on-line soon, hopefully by next year.

On refunds, she said 20% of those who had overpaid would receive their money back before the end of the year.

“We have settled 80% of all claims for refunds. These 20% involve cases where we have asked them to support their claims with evidence,” she said, adding that some of the claims were baseless.

Earlier, Deputy Finance Minister Datuk Dr Awang Adek Hussin commended the IRB for collecting RM60.9 billion in taxes until Oct 31, compared to the RM55.27bil for the corresponding period last year.