Discover how KTP tax appeal with Form Q in IRB

The taxpayer has the right to appeal when they do not agree with the audit findings of the IRB officer.

Without proper procedures and tax knowledge, the effort to appeal would normally go in vain.

Scenario

XYZ Sdn Bhd (name changed to protect the privacy of the company) is in the business of manufacturing timber wood products. They started their operation for more than 10 years since 2009.

In the Year 2016, XYZ was selected by IRB for a tax audit for YA2013. IRB officers do not agree on the claim of the interest expenses over a vacant factory building. As a result, the company received an additional assessment (Form JA) to pay a tax of RM44,000.

The factory was vacant for 2 years (YA2013 and YA2014) and finally managed to move in after acquiring all the licenses required in YA2015.

Struggles

XYZ Sdn Bhd does not know the appeal procedures and has no relevant tax knowledge to defend themselves.

Solution

XYZ Sdn Bhd engaged KTP as their representatives to appeal for them.

KTP follows the tax appeal procedure by writing a Form Q attached with an appeal letter to IRB to explain the situation. After a few tele- conversations and meetings with IRB officers, IRB officers issued a reduced assessment (Form JR) to waive the additional tax and penalty.

PS

1.A completed Form Q must contain the following:

1.1 Date and amount of tax payable under the disputed notice of assessment; and

1.2 Detailed grounds of appeal containing the reasons why the taxpayer disagreed with the notice of assessment.

2.A Form Q must be signed by the taxpayer himself, or in the case of companies or partnerships, an authorised person.

3.Form Q should be submitted to the tax branch that the taxpayer’s income tax file is kept.

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A Form Q is a notice of appeal and can be downloaded from the IRB website. Any taxpayer who wishes to appeal against the assessment must submit 4 copies of Form Q for each year of assessment with the grounds of appeal to the IRB branch handling th…

A Form Q is a notice of appeal and can be downloaded from the IRB website.

Any taxpayer who wishes to appeal against the assessment must submit 4 copies of Form Q for each year of assessment with the grounds of appeal to the IRB branch handling that income tax file.

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