SVDP was a special program introduced in the budget 2019 with lower tax penalties on offenses committed under Income Tax Act 1967, the Petroleum (Income Tax) Act 1967, the Real Property Gains Tax Act 1976 and the Stamp Act 1949.
The penalty rate for SVSP was listed as below:
|Voluntary Disclosure |
|Payment must be made |
|03.11.2018 to 31.03.2019||31.03.2019||10%|
|01.04.2019 to 30.06.2019||30.06.2019||15%|
SVSP are applicable in the following circumstances:
- Income not previously declared / income under declared;
- Expenses over claimed / disallowed;
- Reliefs, deductions and rebates over claimed; and
- Stamping of instruments not previously stamped
As a rational of it, IRB is now encouraging the tax payers to voluntarily declare their unreported income under SVDP. As this program is acting as good faith for the tax payer. After the expiration of the program, the penalty rate was imposed from minimum 80% to maximum 300% based on the provision under the application Act in force.
*Voluntary disclosures of unreported income effective from 03.11.2018 to 30.06.2019.
If you have any enquiry, please do not hesitate to contact our tax department team in respective branch or HQ – 03-79848988.
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