Legal Action Due To Neglect To Remit Tax Payment?

The Inland Revenue Board is not authorised to take legal action against taxpayers who neglect to remit their income tax or commit other offences under the Income Tax Act 1967. The Court of Appeal established a landmark ruling that revenue counsel is not empowered to act against those who fail to pay income tax. They further ruled that if the board did so, without first obtaining permission from the public prosecutor, the legal action would be unconstitutional, null and void.

A three men bench, led by Datuk Abu Samah Noordin, made the landmark ruling in allowing an appeal by taxpayers who were charged in a Penang magistrate’s court for failing to declare their combined income amounting to RM700,000 for YAs 2003 and 2004.

The unanimous ruling would be a precedent as the judgment of the Court of Appeal was final.

Taxpayers’ Concern

Taxpayers concerned over excess tax deductions should fill up their tax relief forms monthly and submit them to their employers before their next salary disbursement. This will help avoid issues of overpayment and eases the burden of waiting for a refund once taxes are filed annually, the Inland Revenue Board (IRB) said yesterday.

IRB’s public relations officer, Masrun Maslim, explained that employees should fill up the TP form (deduction and rebate for individuals), which is available at the IRB website, by stating their monthly expenses qualified for tax exemptions. By doing so, the amount deducted from the employee’s salary for taxes in that month will be the exact amount the employee is required to pay.