(Tax Update) : Failure to Furnish Information within a Stipulated Period

Overview

Taxation constitutes a fundamental pillar of the Malaysian economy, and the Inland Revenue Board of Malaysia (IRBM) assumes a pivotal role in upholding tax law compliance. One of its key functions involves conducting tax audits to verify the accuracy of income reporting and tax payments by taxpayers.

Public Ruling No. 3/2015 is a comprehensive guide that outlines taxpayer obligations. It covers record-keeping, the need for timely information submission, and the consequences of non-compliance. In this article, we delve into the insights offered by this crucial Public Ruling, providing clarity on Malaysian taxpayers' responsibilities.

Key takeaways:

You will understand:

• How to secure deduction claims?

• What types of supporting documents that IRBM has the power to call?

• Who holds the responsibility for maintaining records and supporting documents?

• What are the consequences of failing to furnish documents within the prescribed timeframe?

• Can the taxpayer apply for an extension of time with IRBM?

Summary of learnings:

How to secure the deduction claims?

Taxpayers must submit specific supporting documents within the prescribed timeframe as set out by the IRBM in the notice issued under section 81 of the Income Tax Act 1967 (ITA).

What types of supporting documents that IRBM has the power to call?

IRBM has the authority to request various supporting documents, including books of accounts, invoices, vouchers, receipts, and any other records specified by IRBM.

Who holds the responsibility for maintaining records and supporting documents?

Taxpayers are responsible for keeping financial records and documents for seven years from the end of the year of assessment in which the Income Tax Return Form (ITRF) is furnished.

What are the consequences of failing to furnish documents within the prescribed timeframe?

Failure to provide requested documents within the stipulated time may result in the disallowance of claimed expenses for tax deduction under subsection 39(1A) of the ITA.

Can the taxpayer apply for an extension of time with IRBM?

Yes, taxpayers can apply for an extension of time from IRBM, provided the application is made before the stipulated timeframe expires and valid reasons are provided.

The approval status and details of the application will be issued in the form of a notice by IRBM.

Source:

Public Ruling No. 3/2015: Failure to Furnish Information within a Stipulated Period

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