MALAYSIANS who fail to declare their incomes from overseas sources may face “unfriendly” reception from the taxman, warns Deputy Finance Minister Datuk Amiruddin Hamzah.
“If they do not come forward to declare their overseas income under the Special Voluntary Disclosure Programme (SVDP), then they may likely face a not-so-friendly welcome from the tax authorities,” he said when replying to a supplementary question by Wong Kah Woh (PH-Ipoh Timur).
Wong asked whether the government would take a more friendly approach in tax collection as the approach taken by the Inland Revenue Board to send letter of notices on the SVDP had caused worry among the public.
Amiruddin said the SVDP was targeted at those who had overseas accounts but had not declared or under-declared their incomes.
They are advised to meet IRB officers on this.
He noted that there was an understanding between members of the Organisation for Economic Cooperation and Development (OECD) countries to share banking information through its Automatic Exchange of Information (AEOI) system.
“Through this information, we will know who has overseas bank accounts and whether they have come forward to declare their incomes or under-declared incomes,” he said.
“Since the SVDP was launched, a total of 486,360 individuals have declared their incomes under the scheme,” he said.
The SVDP was launched on Nov 3 last year.
Penalties will be imposed for those who failed to report their undeclared or under-declared incomes.
Amiruddin said the discounts were incentives under the SVDP to avoid the usual penalty of between 45% and 300% imposed on tax defaulters for undeclared or under-declared incomes.