IRB gives one month period for tax filing involving 31,598 individuals, entities

THE Inland Revenue Board (IRB) gives one month period from today (June 15) until July 15 this year for 31,598 individuals and business entities to report their actual income.

Up to 31,598 individuals and entities have failed to disclose their actual income with the IRB.

According to the IRB, this data is based on information through the ownership of assets and the ability of the entity to take loans/securities in excess of RM500,000 and above.

Out of the total figure, 23,751 were individuals, while the remaining 7,847 were companies and business entities.

“In order to create a good tax ecosystem and for voluntary tax compliance to be improved among the community in Malaysia, IRB focuses on addressing this issue through three main approaches, namely A: Awareness, E: Education and S: Services or simply AES.

“IRB will continue to adopt these three approaches in an effort to show our role as a facilitator of compliance and we advise the 31,598 entities, especially the 23,751 individuals detected, to come voluntarily to the nearest IRB branch immediately to register tax files and report their actual income,” the tax board said in a statement yesterday.

Based on the data and the analysis done, the amount of direct tax leakage in the country is estimated at RM665 million. 

“Looking at the estimated value of this leakage, it is a significant amount and could have a negative impact on the country’s economic stability if it is not curbed immediately,” IRB added. — TMR