Remember the Revenue Board’s (IRB) Special Voluntary Disclosure Programme (SVDP)? That’s the programme where if one ‘forgotten’ to declare some unpaid taxes previously, one has a change to remember it and quickly declare them before the IRB takes a serious approach. Basically, it’s more of a voluntary basis and no one would be punished as long as they are declaring something they should have declared earlier and well, pay the relevant taxes. Want to know how many has participated in this SVDP programme? Actually, the number is huge.
Article in thestar.com.my IRB said almost 490,000 tax payers had participated under the SVDP programme as of June 2019. (WOW!) Finance Minister Lim Guan Eng said that there would not be any further extension to the deadline of September 20th 2019. He said, “Therefore, I encourage taxpayers to make full use of this one time initiative as there will be no extension or repeat of such programme in the pipeline in the near future.”
His warning? “After the end of this programme, IRB has been mandated to impose a minimum penalty rate of 45% and up to a maximum of 300% as stipulated under the Income Tax Act 1967.” He also said that the IRB will be professional. He added, “The days of midnight raids of homes, armed with weapons and wearing balaclava masks are over. IRB must adopt a friendlier, kinder, gentler approach and treat tax payers who contribute taxes as partners.” Article in thestar.com.my
I think with all these reporting, it’s highly unlikely that our Finance Minister will extend the date any further and it’s very likely that strict action from the IRB is starting after the deadline. If they did not, it may be hard for the people to take the IRB seriously in the future. If we look at our neighbour down south, the most important thing they do extremely well will be ENFORCEMENT part. They really mean what they say and they will be mean when the deadline arrives. Happy anticipating and hopefully everyone follows our Finance Minister’s advice.
<Featured Image is courtesy of Stock Photos from Artur Szczybylo>
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