Tax Evasion Increasingly Dicey with Malaysia’s Implementation of Automatic Exchange of Information (AEOI) with International Tax Authorities

MIA Organises Seminar on Special Voluntary Disclosure Programme to Educate Members and Affected Taxpayers on Need for Voluntary Disclosure to Support National Development

KUALA LUMPUR, Jan 17 (Bernama) -- To assist the Government in managing the fiscal deficit and support nation building, MIA organised a half day seminar focusing on the Government’s latest Special Voluntary Disclosure Programme (SVDP).

“As the regulator for the profession, MIA is pleased to share our tax expertise to facilitate the Government’s SVDP. MIA encourages all taxpayers to take advantage of the Government’s amnesty and disclose their undeclared income,” said MIA Vice President Huang Shze Jiun in his welcome remarks.

In his special address, guest of honour YBhg Dato’ Sri Sabin Samitah, Chief Executive Officer, Inland Revenue Board of Malaysia (IRBM), encouraged accountants as “key stakeholders and service providers within the taxation and business ecosystem” to support the SVDP and broader tax compliance.

He warned that, “it is becoming increasingly difficult for taxpayers to hide undisclosed income with the growing use of technology and big data tools, as well as enhanced international collaboration among regulators and other parties in the global financial ecosystem.” Under the Organisation for Economic Co-Operation and Development (OECD) initiative to increase transparency of taxation, Malaysia has implemented the Automatic Exchange of Information (AEOI) with other foreign tax authorities to obtain information to support tax audit and tax investigation activities.

Taking the cue from other successful international voluntary disclosure programmes in the US, UK, Australia, Japan, Singapore and Indonesia, the latest SVDP was announced by the Minister of Finance on 2 November 2018 during the Budget 2019, to encourage taxpayers to voluntarily disclose their previous undeclared income accurately and to settle tax arrears. Under the SVDP, taxpayers will be subjected to reduced penalty rates of 10% and 15% of tax payable during the period, and IRBM will accept all disclosures in good faith. Once the SVDP period expires, taxpayers could be subjected to penalty rates of 80% to 300% from July 1, 2019 onwards.
 
Beginning 16 November 2018, LHDNM issued in stages, general e-mails to taxpayers registered in its database, informing them of the details of the SVDP.  A total of 3,598,412 e-mails were issued.  On top of the emails, LHDNM sent out 4,727,394 letters based in its contact list, notifying the public that a SVDP was put in place.

The half-day seminar featured a panel session focusing on the SVDP and panellists also clarified questions from the participants. This was followed by a special session on The Five Things Accountants Should Do for Taxpayers, to encourage MIA members to engage more productively with their clients to enhance their services and value to taxpayers, while strengthening tax compliance.

NOTE TO EDITOR:

About the Malaysian Institute of Accountants (MIA)
Established under the Accountants Act 1967, MIA is the national accountancy body that regulate, develops, supports and enhances the integrity, status and interests of the profession in Malaysia.  MIA accords the Chartered Accountant Malaysia or “C.A. (M)” designation. Working closely alongside businesses, MIA connects its membership to an unmatched range of information resources, events, professional development and networking opportunities.

Presently, there are more than 35,500 members making their strides in businesses across all industries in Malaysia and around the world.

MIA’s international outlook and connections are reflected in its membership of regional and international professional organisations such as the ASEAN Federation of Accountants (AFA), and the International Federation of Accountants (IFAC).  For more information on MIA, visit www.mia.org.my 

SOURCE: Malaysian Institute of Accountants (MIA)
 
FOR MORE INFORMATION, PLEASE CONTACT:
MIA STRATEGY COMMUNICATIONS & BRANDING UNIT
Tel: +603 27229000
Fax: +603 27229009
Email: communications@mia.org.my
 
Name: Thane Meyyappan
Team Lead
Tel: +6012 248 9534
 
Name: Nurul Nadira
Senior Executive
Tel: +6019 261 9708

--BERNAMA