By STAFF Writer
October 24, 2011
MALAYSIA NEWS - Amendment in Income Tax Act in Malaysia may affect foreign investment along with some negative impact on the local business community as well as on taxpayers, said MCA Young Professionals Bureau on Saturday.
According to the MCA chairman, in the Section 81 amendment of Income Tax Act the Internal Revenue Board's director-general (DG) gets the power to disregard, partly or completely, the income tax claims proof after the end of notice period.
In a press conference in Kuala Lumpur chairman Datuk Chua Tee Yong said, "Previously, a person is entitled to appeal any additional assessment issued by the DG. "However, this new amendment does not allow for any room to appeal, as the DG may disregard proof of claims, such as receipts or documents."
He illustrated the amendment with an example: if any public listed company claims for travelling expenses of RM500,000 that were actually incurred four years ago, then DG may issue a notice for presenting receipts within thirty days. If the company is unable to find the receipts withing 30 days timeline, it pays the additional assessment. In any case if the company is able to find the receipts thereafter, it cannot appeal against the additional assessment as the receipts have been completely discarded by the DG.
Chua adds that such amendment in the Income Tax Act will create apprehension among businesses and investors.
However, next Tuesday the issue will be brought to the MCA presidential council which may further reach to the Cabinet and the National Economic Council for deliberation, said Chua.
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October 24, 2011 | 0
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