Many employees still in the dark over tax forms

PETALING JAYA: More awareness needs to be created over the Inland Revenue Board’s TP1 forms, according to both employers and employees.

Group financial officer R. Ragesh said not many employees knew of the deduction and rebate form.

“Awareness is lacking,” he said. “We do get a few employees who submit the form but the majority of them are unaware.”

Ragesh said the form “has been around for a while” but many did not use it as they would file their returns every year and claim the refunds as normal.

“The MTD (monthly tax deductions) normally does not take into account detailed tax relief such as for insurance, books and medical,” Ragesh said.

“The TP1 form will ensure that these are taken into account every month and that employees avoid overpaying,” he added.

Ragesh said having the MTD as the final tax would create more work for employers but he said it could be done.

“It is definitely more work. We have to hire more staff for this,” he pointed out.

“We have no problems accepting the forms at any time so long as it is before our payroll cut-off date.

“But some employees might choose to submit it once a year to us or once every few months,” he added.

Taxpayer S.N. Yeo said she preferred to submit the form several times a year instead of every month.

“I have medical expenses I need to pay for throughout the year and it is easier to claim the rebate in one go,” she said.

“I do not mind having the MTD as the final tax so long as pro­per deductions are made,” she added.

M. Mary said she was glad that the final tax plan was not compulsory.

“Some will not be too keen to reveal their tax relief details to their employers.

“Moreover, not everyone has access to computers to do an online self-assessment to check whether the MTD is the same as the income tax payable,” she said.

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