With the implementation of GST, many were of the view that Income Tax will take a back step. However this is certainly NOT TRUE, this is evidenced by the Active Role played by IRB in Tax Audit.
By simple research on the news in 2017 and 2018 itself, there are so many High Profile Listed Companies being slapped heavily with Additional Tax and Penalties. It is obvious that IRB is STILL Highly Active and also the Law is CHANGING FASTER than before.
Many Taxpayers and Professionals are Outdated on the Law and Latest Approach taken by IRB. There are in fact, lots of preparation needed for the Right Documentation.
Read on to Discover More about which were the Listed Companies subject to TAX AUDIT and the REASONS the Assessment was Raised by IRB :
Tax Audit can really be a Daunting Process, especially for Companies, Accounting Personnel, Consultants and Legal Personnel. Be prepared to face TAX AUDIT CONFIDENTLY !
Reason : Revocation of manufacturer status, as such IRB disallowed deduction for reinvestment Allowance on capital expenditure on equipment and facilities enhancement.
[Source : The Malaysian Reserve (April 3, 2017)]
Reason : IRB varying the loan transaction collaterised by receivables undertaken by the company with a local financial institution to that of a sale of receivables.
[Source : The Star (December 13, 2017)]
Reason : Interest expense relating to certain investment was disallowed for tax deduction.
[Source : The Star (December 29, 2017)]
Reason : Disqualified expenditures.
[Source : The Edge Market (January 9, 2018)]
|Reason : RM 32.54 mil for disallowance of interest expenses for YA 2011 to 2015, and disallowance of common expense for YA 2009 to 2015. RM 75.38 mil for sales of the investment properties being regarded as capital transactions that fall under the purview of the RPGT.|
[Source : The Star (Nov 17, 2017)]
The above are fraction of the Tax Audit cases reported in News.
Tax Audit is undergoing MUCH CHANGES as a result of recent Tax Cases published to date.
Existing approaches taken by Consultants and Companies are outdated and desperately in need of immediate updates.
JOIN TAX AUDIT 2018 & FACE TAX AUDIT CONFIDENTLY.
There is a Chinese saying
“Know Yourself and Thy Enemy, will ensures Victory in every Battle”.