KUALA LUMPUR (March 15): The Public Accounts Committee (PAC) has recommended that the government increases the outstanding tax threshold for individual taxpayers to RM10,000 from RM2,000 presently, before the cross-border restriction is triggered.

In a statement today, PAC chairman Datuk Seri Hasan Arifin said the  existing threshold is not appropriate under the prevailing economic conditions.

The PAC has also recommended a threshold of RM50,000 for companies.

The recommendation came following a meeting of proceedings on March 27, 2017 to discuss findings by the National Audit Department in relation to the imposition, which goes under the purview of Ministry of Finance and the Inland Revenue Board (IRB).

Complications affecting the imposition include: absence of civil legal action, temporary release prior to full settlement; failure by recipients of temporary release to commit to payment by instalment, and failure by employers to settle outstanding tax by employees who have left the country.

PAC also commented on other aspects of the implementation, despite being “generally satisfied with the management of the cross-border restriction by the IRB”.

“Before the travel restriction is imposed, IRB must ensure the notice of tax arrears is delivered to the individual or company according to the laws as practised by Public Service Department,” it said.

The PAC also urged IRB to utilise new technologies in its information delivery system, such as simple messaging service, mobile chat services or emails to notify those with outstanding tax or those affected by the travel restriction.

“IRB and the Immigration Department must ensure their database is always updated to prevent cases where a taxpayer who has cleared the outstanding tax continues to face problems when planning to travel overseas,” added Hasan.