The Collection Intelligence Arrangement (CIA)
The announcement of the establishment of the Collection Intelligence Arrangement (CIA) was made in the Budget 2017 last year, comprising the Companies Commission of Malaysia and the two tax authorities – Inland Revenue Board and Royal Malaysian Customs Department – clearly indicates that the tax enforcement agencies are working towards cross-border transparency and information sharing via digital evolution.
The Collection Intelligence Arrangement under the Finance Ministry (MOF) will enable the sharing of data among the three parties to reduce tax leakage and improving efficiency.
JOINT AUDIT PROGRAMME STANDARD OPERATING PROCEDURE
The Customs Department and the Inland Revenue Board (IRB) represented by its Director-General T Subromaniam and Chief Executive Officer Sabin Samitah respectively, inked a Joint Audit Programme Standard Operating Procedure (SOP) as part of efforts to tackle cases of tax non-compliance more effectively last August witnessed by Treasury Secretary-General Mohd Irwan Serigar.
The objectives of the programme is to increase tax compliances among taxpayers governed by both bodies, so as to contribute more to the country’s revenue, while it also seeks to enhance audit effectiveness through sharing of information.
The Joint Audit Programme has also seen the establishment of Joint Audit Committee and Joint Audit Implementing Committee for:
- working together in selection of cases,
- setting audit scope,
- preparation of joint audit procedure, and
- coordination of actions by the audit team.
WHY SHOULD SMEs CONCERN
Especially to those SMEs which previously do not have any proper systems, filing and documentations – Compliances:
- Both can share information on the companies that have not paid Goods & Services Tax (GST) and corporate tax, and those who are under-declare and have compliances issue.
- Targeting companies followed by a joint visit by both agencies.
SMEs CHALLENGES
It is a great challenge for the SMEs as they may not know how to:
- Compliances with Tax laws and GST laws in details.
- Without any proper software systems, and
- Lack of proper guidance from Tax agents.
The tax audit which will covers all companies starts in Klang Valley and will be expanded nationwide by this year focusing on compliance and whether the company has indeed paid the correct amount of tax. All SMEs are advised to buck up and engage your nearest Cheng & Co Tax Agents for guidance and advise on how to be in compliance with the Tax and GST laws.
To know more on whether you are in compliance, please visit our website www.chengco.com.my or call us at 03-7984 8988 for more information.
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