Censof to develop system for IRB to help the US combat tax evasion

Inland Revenue Board headquaters new building in Cyberjaya. MOHD SAHAR MISNI/ The Star

KUALA LUMPUR: Censof Holdings Bhd, through unit Century Software (M) Sdn Bhd, will develop and implement the Fatca Automatic Exchange of Information Solution for the Inland Revenue Board of Malaysia (IRB).

“We had implemented the Electronic Revenue Accounting System (eRAS) for IRB in 2008 and this contract is testament to our strong technical capabilities and track record,” Censof group managing director Ameer Shaik Mydin said in a statement.

Censof did not disclose the value and period of the contract in the statement. 

Fatca, which stands for Foreign Account Tax Compliance Act, was introduced by the US Internal Revenue Service to reduce tax evasion of US residents in foreign countries.

Under the Malaysia-US intergovernmental agreement, Malaysian financial institutions and other related institutions are required to provide IRB with account information of US residents via the International Data Exchange Service for validation.

Fatca, which came into effect in July 2014, is a controversial law that requires foreign banks, insurance companies and investment funds to reveal data annually about their American customers in the US who have accounts holding more than US$50,000 (RM223,405) or who are expats with accounts worth more than US$200,000 (RM893,197).

The Donald Trump presidency may lead to the repeal of Fatca.

Censof is a technology company specialising in financial management software solutions.