MKI to meet over outstanding tax of deceased person

PUTRAJAYA: The Muzakarah Committee of the National Council for Islamic Religious Affairs (MKI) will meet soon to find a consensus on the payment of outstanding taxes by a deceased person, said Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar.

He said this was to avoid confusion among Muslims following a difference in opinion on the matter between Penang Mufti Datuk Seri Dr Wan Salim Wan Mohd Noor and Pahang Mufti Datuk Seri Dr Abdul Rahman Osman.

Wan Salim has been reported to be of the view that the next of kin of the deceased person should pay the outstanding tax, while Abdul Rahman is of the opinion that it was not necessary.

According to Mohd Na’im, the meeting will be chaired by MKI chairman Datuk Dr Nooh Gadut.

The MKI plays an important role in coordinating issues on Islam, he told reporters when met at the Prime Minister’s Department’s 2023 MADANI Aidilfitri Open House here today.

He said MKI and the Islamic Development Department of Malaysia (JAKIM) had conducted a study on the matter.

According to IRB, it is legally empowered to collect outstanding taxes even after someone has died.

In accordance with Section 74 and Section 106 of the Income Tax Act 1967, the IRB said it is empowered to claim a deceased’s outstanding tax from the rightful next-of-kin.

Section 74 of the Income Tax Act states that where an individual dies in the basis year for a year of assessment, his executors shall be assessable and chargeable to tax for that year of assessment, for the following year of assessment, and, whenever necessary, for any previous year of assessment in respect of the chargeable income of that individual for any such year of assessment; and, where they are so assessable and chargeable, they shall be assessable and chargeable to tax in like manner and to the like amount as the individual would be assessed and charged to tax if he had not died.

Section 106 of the law states that tax due and payable may be recovered by the government by civil proceedings as a debt due to the Government. – Bernama