IRB chief executive officer Datuk Seri Sabin Samitah said on Wednesday the department estimated RM10bil in tax collection under the SVDP.
Delivering the keynote address at an exclusive SVDP Seminar for C-suites and senior management executives organised by Deloitte Malaysia, he quipped: “As the saying goes ‘you can run but you cannot hide’ and hence, taxpayers are encouraged to take advantage of the SVDP, a one-off initiative offered by the government,” he said.
Inland Revenue Board chief executive officer Datuk Seri Sabin Samitah said on Wednesday the department estimated RM10bil in tax collection under the SVDP.
The SVDP tax amnesty programme was announced during the Budget 2019 on Nov 2 and expires on June 30.
With two months left for taxpayers to benefit from a 10% penalty (disclosures made by March 31, 2019) or a 15% penalty (disclosures made from April 1 to June 30), taxpayers are encouraged to act fast while the IRB accepts in good faith all voluntary disclosures made during the SVDP period.
Deloitte expected taxpayers who may have misreported their tax filings or did not declare their income to the IRB were expected to take full advantage of the SVDP in the coming months.
With six months left before the SVDP period closes, penalty rates of 80% to 300% would be imposed on those who have yet to voluntarily disclose their unreported taxes or may have misrepresented their past filings.
However, during this disclosure period, SVDP offers a heavily reduced penalty rate of 10% or 15% to eligible taxpayers, with declarations accepted in good faith by the tax authority.
At the seminar, Deloitte Malaysia tax experts and IRB officials shared insights, best approaches and prevailing case studies on the SVDP.
Country tax leader of Deloitte Malaysia Sim Kwang Gek applauded the timely introduction of SVDP by the government and stressed on the importance of providing complete disclosure in financial reporting and tax filing.
“Practising transparency is an organisation’s biggest asset. It helps with management and organisational credibility, and can boost investors’ trust and positively influence the performance of an organisation while protecting shareholders’ interests,” Sim said.
The dialogue was moderated by Sabin and also tax audit & investigation leader of Deloitte Malaysia Chow Kuo Seng. Chow said Deloitte was proud to see the government focusing on increasing compliance, instead of increasing income tax rates.
“In the weeks following the announcement of SVDP, we have helped clients take advantage of this golden opportunity to voluntarily disclose and be transparent in their financial reporting to enhance business competitiveness, increase management credibility while lowering the cost of capital.”