Govt hopes with this extension, more taxpayers will participate in the SVDP to enjoy the low penalty rates
by TMR / pic by MUHD AMIN NAHARUL
The government has decided to extend the first phase of the Inland Revenue Board’s (IRB) Special Voluntary Declaration Programme (SVDP) until June 30 this year following encouraging feedback from taxpayers.
Finance Minister Lim Guan Eng said the IRB has received a total of 381,979 voluntary tax declarations as of March 31.
“The Cabinet has decided to extend the first phase of the SVDP with the imposition of a low penalty rate of 10% on the amount of tax payable until June 30.
“The government hopes with this extension, more taxpayers will participate in the SVDP to ensure they enjoy the low penalty rates and subsequently reduce their tax burden,” he said in a statement yesterday.
Lim said the second phase of the SVDP with the imposition of a penalty rate of 15% on the amount of tax payable will therefore begin on July 1 and end on Sept 30 this year. “From Oct 1, a penalty rate of 45% on the amount of tax payable will be imposed on those who failed to submit their Income Tax Return Form (BNCP) and registered taxpayers who have failed to submit their BNCP in a regular manner,” he stated.
According to Lim, voluntary declarations for the financial year ended Dec 31, 2017, under the individual taxpayers category could be made, while companies with financial year ended March 31 last year are also eligible for voluntary declaration.
He said the SVDP will be focused on taxpayers who have overseas account and taxable income in Malaysia, but yet to be reported to the IRB.
“At the same time, the government welcomes any local taxpayers who do not possess an overseas account to make any form of declaration involving income generated domestically,” the minister said.
He said a letter of authenticity will also be issued to both individuals and companies for every declaration made through SVDP scheme by the IRB.
“The IRB will receive every declaration with open hearts, with audit or investigative measures not taken against those who do so, as the IRB has received instructions from the government to stop all forms of threats against taxpayers.
“Affected parties are urged to file a complaint to the IRB or the Finance Ministry if there are groups who were found to disobey the directive,” he said.
The SVDP was announced during the tabling of Budget 2019 in order to encourage full reporting of previously undeclared income as part of the government’s initiative on tax reforms to encourage taxpayers to voluntarily declare their income and subsequently reduce revenue leakages. — TMR