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Financial news: Thou shall not run away from tax

tax documents on the table

Financial news: Thou shall not run away from tax

Not even when we are no longer in this world!

Malaysia’s Income Tax Act says that the administrator or next-of-kin of the deceased persons have to settle their tax areears. What this tells us is that no one could escape tax, even if the person has left this world. This Act acts to ensure the person does not delay paying the tax and then when the person dies, the government of the day would ave to write this off. Just need to note that if the person has no financial ability to pay, the government would have no choice but to write it off. Think… who will have to pay for this if the government decides to write it off?

Article in nst.com.my Deputy Finance Minister Datuk Seri Ahmad Maslan said this about amendments to the Income Tax Act. “We believe that if this (compulsion) is not done, there are parties who are irresponsible and unmotivated to pay taxes. They are waiting to die because then all debts do not need to be paid and debts with IRB (Inland Revenue Board) are settled.

“The matter is already (included) in the act and the IRB informed that the amount (tax) charged is the amount of (taxable) income until his death. If the heirs can pay the tax, they should do so.”

On May 11, IRB chief executive officer Datuk Dr Mohd Nizom Sairi was reported to have said the next-of-kin of deceased taxpayers are fully responsible for their commitments including income tax management.

Section 74 of the Income Tax Act 1967 stipulates that any income tax arrears cannot be automatically written off even if the individual involved is certified dead. Article in nst.com.my

As a taxpayer, everyone should be responsible to pay for their own tax

If the government writes it off, the tax payers would have to pay yeah. Someone has to pay. Else where would the tax revenue come from? The taxpayers are already paying their own tax and now when someone dies and did not pay their tax, then the tax payers also have to take this up as well? As someone who has been paying taxes, I think I have paid enough taxes and I do not wish to pay for other people’s taxes too. Time to get back the GST yeah. It ensures IF ONE SPENDS, ONE PAYS. Spend more, pay more. Spend little, pay little. Take the extra and help the poorer segment. Simple fact.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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