(Tax Update) 𝗡𝗼𝘁 𝗔𝗹𝗹 𝗠𝗲𝗻 𝘄𝗶𝘁𝗵 𝗠𝗶𝘀𝗮𝗶 (𝗠𝗼𝘂𝘀𝘁𝗮𝗰𝗵𝗲) 𝗜𝘀 𝗬𝗼𝘂𝗿 𝗙𝗮𝘁𝗵𝗲𝗿

𝗡𝗼𝘁 𝗔𝗹𝗹 𝗠𝗲𝗻 𝘄𝗶𝘁𝗵 𝗠𝗶𝘀𝗮𝗶 (𝗠𝗼𝘂𝘀𝘁𝗮𝗰𝗵𝗲) 𝗜𝘀 𝗬𝗼𝘂𝗿 𝗙𝗮𝘁𝗵𝗲𝗿 – And Not All Auditors Are Tax Experts

In the tax world, that translates to this: not everyone who talks about tax is qualified to give tax advice.

But somehow, I keep hearing it: “𝗠𝘆 𝗮𝘂𝗱𝗶𝘁𝗼𝗿 𝘁𝗼𝗹𝗱 𝗺𝗲…”

Just yesterday, a friend of mine shared that her auditor advised her on a tax deduction for commission.

The "auditor" suggested my friend issue a payment voucher to Mr. X and then pay herself.

My reaction? Eyes wide, head shaking. This is still happening?

If this had come from anyone else, I’d probably nod, smile politely, and think, “Well, not my problem.”

But since it was a close friend, I couldn’t hold back.

“Tell your auditor to go to hell! (叫他去死)” I said, only half-joking.

I asked her straight: 𝗪𝗵𝗼 𝗶𝘀 𝘆𝗼𝘂𝗿 𝗮𝘂𝗱𝗶𝘁𝗼𝗿, 𝗮𝗻𝘆𝘄𝗮𝘆? 𝗔𝗻 𝗶𝗻𝘁𝗲𝗿𝗻? 𝗝𝘂𝗻𝗶𝗼𝗿? 𝗦𝗲𝗻𝗶𝗼𝗿? 𝗠𝗮𝗻𝗮𝗴𝗲𝗿? 𝗢𝗿 𝗮 𝗽𝗮𝗿𝘁𝗻𝗲𝗿?

Because let me tell you my past experience, titles don’t guarantee tax wisdom.

But here’s the real kicker: 𝗪𝗵𝘆 𝗶𝘀 𝘆𝗼𝘂𝗿 𝗮𝘂𝗱𝗶𝘁𝗼𝗿 – 𝗻𝗼𝘁 𝗮 𝘁𝗮𝘅 𝗮𝗴𝗲𝗻𝘁 – 𝗲𝘃𝗲𝗻 𝗴𝗶𝘃𝗶𝗻𝗴 𝘆𝗼𝘂 𝘁𝗵𝗶𝘀 𝗮𝗱𝘃𝗶𝗰𝗲?

There’s a crucial difference here, one that too many businesses overlook.

Just because someone is an auditor doesn’t mean they’re automatically qualified to advise on tax issues.

They may know the books inside out, but tax compliance? That’s a specialized field, and it’s why tax agents exist.

I also share with my friend that your "auditor" 𝗮 𝗹𝗶𝗰𝗲𝗻𝘀𝗲𝗱 𝘁𝗮𝘅 𝗮𝗴𝗲𝗻𝘁 𝗶𝗻 𝗠𝗮𝗹𝗮𝘆𝘀𝗶𝗮? 𝗛𝗮𝘃𝗲 𝘀𝗵𝗲 𝘃𝗲𝗿𝗶𝗳𝗶𝗲𝗱 𝘁𝗵𝗲𝗶𝗿 𝘀𝘁𝗮𝘁𝘂𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗜𝗥𝗕’𝘀 𝗠𝘆𝗖𝘂𝗸𝗮𝗶 𝘀𝘆𝘀𝘁𝗲𝗺?

I warn my friend 𝗜𝗥𝗕 𝗼𝗳𝗳𝗶𝗰𝗲𝗿𝘀 𝗱𝗼𝗻’𝘁 𝘀𝗶𝘁 𝗶𝗻 𝘁𝗿𝗲𝗲𝘀 or guess numbers in a haze of paperwork in today’s digital world. Everything is digitalized, and they know exactly where every ringgit goes.

Let me share a quick past story: once, during an audit, an IRB officer pulled out a photocopy of a cheque as evidence.

They had a record of the payment down to the last detail. If you think that issuing a quick voucher or taking shortcuts will get past them, you’re in for trouble.

A legitimate tax deduction on commissions isn’t about just “issuing a voucher.”

It’s about proper documentation, compliance with tax regulations, and making sure the transaction holds up under scrutiny.

Fumbling around with vague advice could end up costing you in penalties or even a full-blown tax audit.

PS : Authored by Mr Koh Teck Peng, the Group Principal, in his personal LinkedIn post https://bit.ly/4huBaEt

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