LHDN’s move shows the elite are not above the law
LHDN’s move shows the elite are not above the law
PETALING JAYA: By going after prominent persons who evade taxes, the Inland Revenue Board (LHDN) is sending the signal that all Malaysians must contribute their part to the country, say tax experts.
Do the right thing: It is both a moral and legal responsibility of every taxpayer to pay taxes, and the LHDN has the mandate to enforce to ensure that everyone is in compliance.
Thannees Tax Consulting Services managing director SM Thanneermalai said LHDN’s move would send a strong message to the elite.
“People who think they are in power with all the connections and thus can get away from paying taxes – that perception should be removed.
“The prominent and connected shouldn’t be given different treatment when the ordinary man is paying taxes,” he said.
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Thanneermalai also said the hunt for the 100 prominent figures in the country is in line with Prime Minister Datuk Seri Anwar Ibrahim’s call to go after the rich who do not pay taxes.
“LHDN must go after these people and it does not matter whether they are Datuks or Tan Sris,” he added.
At the same time, Thanneermalai said the LHDN should go after individuals who file questionable claims in their tax returns.
“If you ask for the invoices and these individuals cannot produce invoices, that is very clear cut,” he said.
Thanneermalai said that the Special Voluntary Declaration Programme (SVDP), which gives full penalty waivers to bad taxpayers beginning June this year till the end of 2024, should be the last that is introduced by Putrajaya.
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He said the first SVDP was introduced in 2018 and if it was reintroduced after 2023, it could send the wrong message to law-abiding taxpayers.
“The good taxpayers will get upset because the bad taxpayers don’t have to pay taxes all these years, but come and pay whenever there’s an amnesty, where a 100% penalty waiver is given,” he added.
The reintroduction of the SVDP was announced during the tabling of the revised Budget 2023 in February.
Thenesh Kannaa, partner at independent tax advisory firm TraTax, said it is the duty of every individual to pay the right amount of tax.
“It is both a moral and legal responsibility of every taxpayer and the LHDN has the mandate to perform enforcement activities to ensure that everyone is in compliance,” he said.
“LHDN’s enforcement ensures there’s a level playing field among taxpayers,” he added.
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