It said the Inland Revenue Board of Malaysia (Amendment) Bill 2014 will not change the main function of the IRB as tax collecting agency.
"All direct taxes collected will be channelled to the Federal Consolidated Fund.
"The IRB will be paid a fee for providing services as a direct tax collection agent. This fee is used to pay for IRB's operating and development costs," it said in a statement on Tuesday.
The ministry said since IRB was responsible for handling its own operation and development costs, it was allowed to make investments using the savings from such expenditure.
"Hence, all statements claiming that the taxes collected by IRB will be used for investments is not true and baseless," the ministry said.
The Bill that seeks to set up an investment panel under the IRB has been postponed for debate in the next Dewan Rakyat meeting in October.
Deputy Finance Minister Datuk Ahmad Maslan postponed the second and third reading of the Bill under Standing Order 62.
IRB aims to be independent
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