TAXATION

TAX ADMINISTRATION
Week 2 / 14.3.2023 / TUES

CHAPTER OUTLINE
1 PG 569 Return & Assesment 5.0 DUE DATE
2 PG 592 Self- Assessment for Indv If the date (30/6 & 30/4) falls on weekend, the next
3 PG 596 Self- Assessment for Business working day would be regard as due date.
4 PG 606 Collection & Recovery
5 PG 624 Appeals 7.0 TIME FRAME FOR SUBMISSION
Company, LLP, trust bodies or co-operating society is
INTRODUCTION required to submit their return (form C) withing 7
- People who handle tax months of accounting period.
o Lembaga Hasil Dalam Negeri Example:
(LHDN)
o Inland Revenue Board (IRB)

Before 2000 After 2000

LHDN as a department LHDN become agency
that responsible to
collect tax.
Tax officer is the one Tax payer is the one
who compute taxes. who compute the taxes.

RETURN & ASSESMENT

RETURN
Upon submission of tax return, if there is any
additional payment, need to be paid upon
submission. If there is any deduction, need to be
refund into designated bank account.

1.0 TAX RETURN 8.0 RESPONSIBILITIES OF EMPLOYER

1.1 INDIVIDUAL 8.1 FORM EA or EC
Form For who? Due date EA: It concerns with the details of renumeration
B For indv who has Not later paid to employee including EPF & tax deductor.
business income, than 30 EC: used by government employee.
investment income and June
employment income. 8.2 COMMENCEMENT OF EMPLOYEE
BE For indv who has Not later Employer need to notify IRB of employment of new
employment income or than 30 employee using Form CP 22 not later than 30 days.
investment income or April
both 8.3 CESSATION OF EMPLOYMENT
* if e-filing, the due date has additional 15 Employer need to notify IRB if the employee resign,
days retired or dead using Form CP 22A (private sector)
or CP 22B (public sector).
3.0 TYPES OF RETURN a) Cessation of employment
 Different types of taxpayers has different o Not later than 30 days before
types of forms: cessation.
Forms Taxpayers a) Death of employee
BE Resident individuals o Not more than 30 days after being
without business informed of death.
income
B Resident individuals 8.4 EMPLOYEE LEAVING MALAYSIA
with business income If an employee intends to leave Malaysia, the notice
and other source of need to made within 1 month before employee
income expected departure date.
C companies If not, the employee is banned from departure.
There is a lot more, but for now, focus on this 3 first
(pg 574)

TAXATION 1 1
 TAXATION
TAX ADMINISTRATION
Week 2 / 14.3.2023 / TUES

8.6 MONTHLY TAX DEDUCTION

Employer need to deduct appropriate tax of the
employee and remit it to IRB not later than 15th day
of each calendar in respect month.
8.7 STATEMENT TO AGENT, DISTRIBUTOR OR
DEALER
Company need to provide a statement (Form CP 58)
on payments made to agents, distributors or dealers.
Form CP 58- provide only when total incentive ASSESMENT
payment, monetory or non, more than rm 5000 per
year. 1.0 TYPES OF ASSESMENT
This is to uncover any people who did not pay taxes on Assesment Description
comission received. A Original It made accordance to the
particulars provide by
8.8 RECORDS RETENTION taxpayer
Employer need to keep record and receipts for a period B Reduced When there is appeal against
of 7 years to facilitate tax audit. additional assessment,
taxpayer may:
9.0 RESPONSIBILITIES OF EMPLOYEE 1. Reach an agreement
9.1 SUBMISSION ON TAX RETURN with DG by provide
Employee need to submit their return not later than evidence
30 April. The reurn must be complete specifying his 2. Win case through
chargable income, income tax payable and any others appeals to SCIT or
particular as required by the IRB. court decision.
Resulting the additional
9.2 CHANGE OF ADRESS assessment being reduce.
The employee need to notify IRB if they r moving in C Additional DG raised the tax as:
Form CP 600B within 3 months of the change. 1. Taxpayer omitted
certain income while
9.3 RECORDS RETENTION return.
Employee need to keep record for 7 years. 2. Tax refunded by error
or law.
10.0 AMENDMENTS OF RETURN (s 77B) 3. Original assessment
A taxpayer is allowed to make amendments if they not taken omitted
found any errors pertaining on previous return. income.
a) Income under-reported or omitted D Composite Where taxpayer:
b) Expenses wrongly claimed or excessively 1. Makes default in
claimed furnishing return
c) Capital allowances computing and their claims 2. Fails to give notice of
d) Incentives wrongly applied chargeability
Ammendment is allowed once for every year. 3. Makes incorrect
return
10.1 PERIOD OF SUBMISSION 4. Give incorrect
information in
Ammendment form need to submit within 6 months
chageability.
from due date of submission return.
E Increased When the taxpayer has
The amount od additional
reached agreement with DG or
a) Chargable income
SCIT.
b) Tax payable
F Advance To prevent loss of revenue to
c) 10% penalty on additional tax payable
the government
d) 10% penalty underestimate of tax in excess
G Protective When the investigation has
30% between actual tax and the revised tax
not been completed after 5
estimate.
years.

TAXATION 1 2
 TAXATION
TAX ADMINISTRATION
Week 2 / 14.3.2023 / TUES

SELF ASSESMENT FOR INDIVIDUAL

SELF ASSESMENT FOR BUSINESS

Company need to submit form c within 7 month from
closing date

COLLECTION N RECOVERY

TAXATION 1 3
 TAXATION
TAX ADMINISTRATION
Week 2 / 14.3.2023 / TUES

TAXATION 1 4