100% penalty from next year for income tax dodgers

KUALA LUMPUR: Beginning Jan 1 next year, the Inland Revenue Board (IRB) will impose a 100% penalty on the tax of individuals and companies dodging payment or filing incorrect income tax returns.

IRB chief executive officer Datuk Sabin Samitah said it would impose the maximum penalty, compared with the 45% penalty currently imposed on offenders.

"For instance, if the individual or the company commits a RM1mil tax evasion, they should pay a RM1mil penalty, that is 100% of the value of the tax, as compared to the 45% penalty currently imposed.

"The 100% penalty can be imposed under the Income Tax Act 1967," he told reporters after the launch of the 'Operasi Gegar Bersepadu' (G127B) here Wednesday.

He said he hoped the higher penalty would bring awareness to individuals and companies about their responsibility to pay income tax. - Bernama