KUALA LUMPUR: The Inland Revenue Board (IRB) chief executive Datuk Seri Sabin Samitah has confirmed that effective January 2018, recalcitrant income tax defaulters are slapped with a 100 per cent penalty.
This is more than double of the previous 45 per cent penalty on those who fail to pay their taxes or have submitted inaccurate tax report.
Sabin explained that this penalty is not drastic as the IRB would have already reminded these repeated offenders and given them two years to settle their arrears.
Sabin said rigorous auditing and investigations are being carried out by the IRB and the Attorney-General Chamber’s high-powered National Revenue Recovery Enforcement Team (NRRET).
The NRRET, set up in 2015, also include the police, Malaysian Anti-Corruption Commission, Bank Negara Malaysia, Customs Department and the Companies Commission of Malaysia, among others.
“We are collaborating with other government agencies to update our database,” he added.
Sabin said income tax is the largest component of the government’s revenue, contributing more than 50 per cent annually, to fund the nation’s development policy and continuity of the people’s well-being.
“Apart from construction of roads, hospitals, schools, the procurement of military assets for Malaysia’s security, tax revenue also goes to redistribute income via the 1Malaysia People’s Aid (BR1M).
