PAC: Increase limit of tax arrears

At the dewan rakyat
Reports by MARTIN CARVALHO and HEMANANTHANI SIVANANDAM

THE tax arrears limit of RM2,000 which restricts taxpayers from travelling abroad is no longer feasible in the current economic situation.

The Public Accounts Committee (PAC) instead recommended that the Government look into increasing the limit to RM10,000 for individuals and RM50,000 for companies.

PAC chairman Datuk Seri Hasan Arifin said prior to issuing travel restrictions, the Inland Revenue Board (IRB) should first serve notices on tax arrears to the individuals and companies concerned, informing them on the total outstanding amount owed, as practised by the Public Service Department.

“The IRB’s information dissemination system should also be upgraded with new technologies such as SMS, WhatsApp or e-mail, in order to remind or send out notices on these arrears or travel restrictions.

“In addition, the IRB and Immigration Department should ensure that their database is constantly up-to-date to avoid cases of taxpayers who have already paid up their arrears from experiencing difficulties in travelling abroad,” said Hasan in a statement.

The findings, said Hasan, were based on the Auditor-General’s Report 2015 Series 2 that was tabled in Parliament on Nov 21, 2016.