Sabin: This is a golden opportunity for taxpayers to come forward voluntarily as the disclosures made will be taken in good faith by the IRB. Photo by Deloitte Malaysia
KUALA LUMPUR (Jan 9): Taxpayers who may have misreported their tax filings or did not declare their income to the Inland Revenue Board of Malaysia (IRB) are expected to take full advantage of the special voluntary disclosure programme (SVDP) in the coming months, says Deloitte Malaysia.
IRB chief executive officer Datuk Seri Sabin Samitah said the SVDP aims to attract at least one million taxpayers with an estimated RM10 billion in tax collection.
With six months left before the SVDP period closes, penalty rates of 80% to 300% befall those who have yet to voluntarily disclose their unreported taxes or may have misrepresented their past filings.
During this disclosure period, SVDP offers a reduced penalty rate of 10% or 15% to eligible taxpayers, with declarations accepted in good faith by the tax authority.
"This is a golden opportunity for taxpayers to come forward voluntarily as the disclosures made will be taken in good faith by the IRB," said Sabin in a statement today.
"Access to various sources of information on taxpayers and the use of big data enables the IRB to track delinquent taxpayers. As the saying goes 'you can run but you cannot hide' and hence, taxpayers are encouraged to take advantage of the SVDP, a one-off initiative offered by the government," he added.
Deloitte Malaysia tax audit and investigation leader Chow Kuo Seng said on the company's part, it has helped clients take advantage of "this golden opportunity to voluntarily disclose and be transparent in their financial reporting to enhance business competitiveness, increase management credibility while lowering the cost of capital".
The SVDP programme was announced during Budget 2019 and expires on June 30.