Corporate income tax (CITA) is expected to increase by 1.3% to RM70.18bil from RM70.53bil. The main contributor to CITA collection is from the services sector primarily from the financial services.
KUALA LUMPUR: About RM486.29mil in tax refunds failed to be paid last year and the main reasons were due to taxpayers' failure in updating personal data and bank account details.
The Inland Revenue Board said on Monday it placed great importance on the processing of tax refunds to ensure taxpayers eligible for a tax refund receive their refund in the stipulated timeframe.
“However, failure in updating personal information and bank account details results in the failure to complete the tax refund process,” it said in a statement.
Based on 2018 records, 6.22% or about RM486.29mil in refund failed to be paid.
Firstly, undelivered cheques or vouchers to taxpayers due to difference in taxpayer’s address with the address registered in the IRB’s database;
Secondly, mismatch of bank information, account number and identification number / company registration number between IRB’s database and with that of the bank; and
Thirdly, closed or inactive bank account.
The IRB advised taxpayers to update their latest personal and banking information in the annual Income Tax Return Form (ITRF) in a move to assist IRBM in minimising the failure rate of processing tax refunds.
It said the taxpayers could also use the e-Kemaskini system or the feedback form which can be accessed online at any time through www.hasil.gov.my to update their personal and banking information.
It also said other crucial information to speed up the tax refund process include personal identification number, bank account number, correspondence address, telephone number, e-mail address and company registration number (for taxpayers in the company / organisation category).
It also said that from Jan 1, 2020, income tax refunds will be fully made using the electronic method of e-payment.
IRB added it would also increase the use of online tax refund payment transactions via the Electronic Fund Transfer (EFT) method.
