The Inland Revenue Board (LHDN) has reiterated that it is offering a full reset for taxpayers who come forward to declare past income or amend erroneous past tax filings under the upcoming Special Voluntary Disclosure 2.0 Programme (PKPS 2.0). The special amnesty programme – which is set to run for one year, from 1 June 2023 to 31 May 2024 – is organised in a bid to encourage more Malaysians to fulfil their tax obligations.

Aside from wiping the slate clean for affected taxpayers, the programme also offers a full penalty waiver for any unreported tax voluntary disclosed. “There will be zero penalties under PKPS 2.0. This is an opportunity for everyone to come forward openly and honestly, especially those who are aware that they have not been paying taxes and have not been declaring or over-claiming tax reliefs or rebates,” said the chief executive officer of LHDN, Datuk Mohd Nizom Sairi.

That said, Datuk Nizom emphasised that there is a caveat to the zero-penalty perk offered under the PKPS 2.0 programme; only individuals and companies that are not currently under audit or investigation by LHDN are allowed to tap into it. Otherwise, both new and existing taxpayers from all categories who did not declare their income in past years, or have incorrectly filed their taxes and would now like to amend them, are welcome to take advantage of the programme.  

For context, the PKPS 2.0 programme was proposed under the revised Budget 2023, following the good results of the first PKPS programme when it was introduced back in 2018/2019. Under PKPS 1.0, however, taxpayers were mainly allowed to enjoy a reduced penalty for previous trespasses, namely a discounted 10% or 15% penalty for the late submission of their tax returns. The reduced rate also applied to undeclared or under-declared income, as well as over-claimed expenses, rebates, and reliefs. Those who had deliberately or inadvertently under-declared their incomes were allowed to pay lower penalties as well, as compared to the usual 45% or 300%.

Given the improved benefits provided under the PKPS 2.0 programme, Datuk Nizom urged taxpayers to make the most of it. “Don’t wait till the last minute to participate in the programme. LHDN will continue doing its job of selecting high-risk cases for audit or investigation. If you don’t come forward and your case is selected and discrepancies are found, then the window of opportunity for the zero penalty will be closed,” he further said.

Datuk Nizom also reassured that LHDN will do its best to ease the tax filing process for the public. “If there are disputes, we will negotiate and see if we can come to a mutual agreement,” he noted, adding that the board will only take legal action as a last resort, if a resolution cannot be found.

(Source: Malay Mail)

• TAGS:
• Datuk Dr Mohd Nizom Sairi
• Income Tax
• Inland Revenue Board
• Lembaga Hasil Dalam Negeri
• LHDN
• LHDN Special Voluntary Disclosure Programme (PKPS)