IRB collects RM206m via voluntary declaration programme

The programme has also resulted in 50,000 newly registered taxpayers, says IRB communications director


The Inland Revenue Board (IRB) has collected RM206 million from companies and individuals via the Special Voluntary Declaration Programme (SVDP) since its introduction in November 2018.

The programme has also resulted in 50,000 newly registered taxpayers — majority with stable income sources, said IRB communications director Syarein Abu Samah.

“IRB has introduced a 
voluntary declaration programme, which encourages companies and individuals 
to disclose their income 
assets and we manage to collect RM206 million in taxes nationwide.

“There are about 4,000 instruments that have been stamped, while the amount of duties and penalties for them have reached RM2.2 million,” he said.

He added that IRB expects to increase the total tax collection in the programme, which is slated to end on June 30, 2019, thanks to the reduced penalty rates offered by IRB.

“When we launched the programme last year, we had offered a much lower penalty rate of 10% to those who declare within the first phase, which will end on March 31, 2019.

“The second phase of the programme will offer tax-
payers a penalty rate of 15% until the end of the programme,” he said.

Syarein said individuals or companies, who are participating in the SVDP and making voluntary income declarations from 2017, will not be subjected to any audits or investigations.

“Once the taxpayers join the programme, declaration can be made for incomes from 2017 and we will not commence any audit activities or investigations on them,” he said, adding that there are four categories of taxpayers who have misreported or failed to declare their income.

Recently, IRB CEO Datuk Seri Sabin Samitah said the SVDP is expected to collect up to RM10 billion from one million taxpayers.

He had highlighted that the SVDP provides a “golden opportunity” for taxpayers to come forward voluntarily, as the disclosures and filings would be secured by the tax agency.

Sabin also said access to 
various sources of information on taxpayers’ details and the use of big data would enable the IRB to track errant taxpayers.

The SVDP is a tax amnesty programme which was announced during the tabling of Budget 2019.

The scheme, which commenced from Nov 3, 2018, until June 30, 2019, is offering taxpayers lower penalty rates for misreporting their tax filings or failure in declaring their income.

According to the IRB, taxpayers who made their filings after the programme expires will receive the initial penalty rates that would range from 80% to the maximum of 300%, as provided for under the existing tax laws.