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Malaysians are still buzzing over the Budget 2018, recently announced by Prime Minister Datuk Seri Najib Tun Razak. SMEs are among the biggest beneficiaries with the government tabling RM20 billion in the budget to further develop the industry.
On 3 November 2017, Lembaga Hasil Dalam Negeri Malaysia (LHDN) or the Inland Revenue Board Of Malaysia (IRB) organised a talk on the Budget 2018 and some pertinent questions were posed by the audience to the representative of LHDN who was among the panelists.
Among them, we have selected three key questions that were answered by Mr Abu Tariq Bin Jamaluddin, Director of the Legal Department at LHDN, that highly impacts businesses.
Key Questions On The Malaysia Budget 2018
Question (Q): A new director has taken over a business. But the company is being tax audited / investigated and there are tax assessments for previous years’ when the new director was not appointed yet. Who will be held accountable for the tax liability that arises from the tax audit / tax investigation?
Answer (A): The new director will be liable and LHDN cannot charge the previous director that has resigned.
Q: A company that is winding up receives tax clearance that shows NO tax payable and the liquidator successfully winds up the company. However, the company proceeds to receive the tax assessment and are now required to pay the tax liability. What does the company do?
A: LHDN can raise the assessment although tax clearance is issued. The company is still liable to pay the tax. The company can also bring the case to LHDN for further discussion.
Q: If a tax audit shows under declared income and over addition of expenses, can the assessment come out in net, from the impact?
A: Yes!
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