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Administrative Step or Aggressive Movement? Revenue’s Announcement on Centralisation and Dispersal of Certain Categories of Corporate and Non-Corporate Taxpayers’ Files
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Latest Firm's PressShearn Delamore & Co. The Inland Revenue Board of Malaysia (Revenue)’s press release of 13 January 2021 announced the Revenue’s implementation of centralisation and dispersal of tax files for taxpayers of certain categories, with effect from 1 January 2021. Taxpayers affected in the Revenue’s centralisation and dispersal process are:
According to the Revenue, the purpose is to align with the government’s policy in relation to the tax treatment of Small and Medium Enterprises and to fulfil the requirements of the Transfer Pricing Guidelines 2012. The Revenue’s press release stressed that it is also done to ensure that the management of taxpayers’ files would be conducted in a more organised, efficient and upto-date manner based on prevailing requirements. Notwithstanding the Revenue’s official explanation above, the implementation of the tax file centralisation and dispersal exercise is, in practice, most likely a means by which the Revenue will pursue and continue its aggressive audit and investigation tactics against taxpayers. [UNOFFICIAL SD TRANSLATION] INLAND REVENUE BOARD OF MALAYSIA’S MEDIA RELEASE DATED 13 JANUARY 2021 CENTRALISATION AND DISPERSAL OF CERTAIN CATEGORIES OF CORPORATE AND NON-CORPORATE TAXPAYERS’ FILES The Inland Revenue Board of Malaysia (IRBM) wishes to inform that with effect from 1 January 2021, IRBM has implemented the centralization and dispersal of files for taxpayers of certain categories in line with the government’s policy in relation to the tax treatment of Small and Medium Enterprises and to fulfil the requirements of the Transfer Pricing Guidelines 2012. This is also done to ensure that the management of taxpayers’ files would be conducted in a more organised, efficient and up-todate manner based on prevailing requirements. The criteria of taxpayer’s file involved in this centralisation and dispersal process are as follows:
Close to 97,000 tax files would be involved in this centralisation and dispersal process, where every taxpayer concerned will be informed in stages by email or letter (for taxpayers who do not have emails). You may also check for such notifications via the MyTax application. Any related enquiries and feedback can be forwarded to IRBM via:
Written by, Associate Tax & RevenueLaw Practice Group
For further information regarding this article or tax and revenue law matters, please contact: Head Tax and Revenue Practice Group +603 2027 2828
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Partner Tax and Revenue Practice Group +603 2027 2641
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