No amendment to act, kin must pay arrears of deceased taxpayers, says Ahmad Maslan

PONTIAN: The government does not want to amend the Income Tax Act which stipulates that the administrator or next-of-kin of a deceased income taxpayer has to pay the tax arrears.

Deputy Finance Minister Datuk Seri Ahmad Maslan (pic) said if the act was not implemented against the executors and heirs, it was feared that the motivation and sense of responsibility of the people to pay their taxes will decline.

"We believe that if this (compulsion) is not done, there are parties who are irresponsible and unmotivated to pay taxes.

"They are waiting to die because then all debts do not need to be paid and debts with IRB (Inland Revenue Board) are settled.

"The matter is already (included) in the act and the IRB informed that the amount (tax) charged is the amount of (taxable) income until his death.

"If the heirs can pay the tax they should do so," he said after the Raya event hosted by the Writers’ Association of Johor here on Friday (May 19).

On May 11, IRB chief executive officer Datuk Dr Mohd Nizom Sairi was reported to have said the next-of-kin of deceased taxpayers were fully responsible for their commitments including income tax management.

Section 74 of the Income Tax Act 1967 stipulates that any income tax arrears could not be automatically written off even if the individual involved was certified dead.

On Wednesday (May 17), Minister in the Prime Minister's Department (Religious Affairs) Datuk Dr Mohd Na'im Mokhtar was reported to have said that the Muzakarah Committee of the National Council for Islamic Religious Affairs (MKI) would meet soon to find a consensus on the payment of outstanding taxes by a deceased person, following a difference of opinion between two muftis, Penang Mufti Datuk Seri Dr Wan Salim Wan Mohd Noor and Pahang Mufti Datuk Seri Dr Abdul Rahman Osman regarding the matter. - Bernama