MCCM urges govt to review proposed increase in penalty rate for tax evasion

KUALA LUMPUR: The Malay Chamber of Commerce Malaysia (MCCM) hopes the government will review the proposed increase in penalty rate to 100% for tax evasion and inaccurate tax reporting among taxpayers.
In the Budget 2018 wish list, MCCM Vice-President, Norsyahrin Hamidon, said a review was needed to prevent entrepreneurs especially from being burdened by a high penalty rate.
Earlier, the Inland Revenue Board Malaysia had announced the increase in penalty rate from 45% to 100% effective January 2018, following the discovery of cases involving leakages in income tax payments by companies which had generated income ranging from hundreds of millions to billions of ringgit.
"We hope the proposal would be put on hold and the 45 per cent penalty rate be maintained in view of the uncertainties in the economy.
"This would indirectly help entrepreneurs carry on their businesses amid a gloomy economy," he said to reporters at the briefing on the forum titled 'National Halal Business Forum: Halal Integrity, Challenges and Opportunities' here today.
Norsyahrin said the forum, organised by MCCM, would be held in Terengganu from Oct 23-24, 2017.
"It aims to attract some 200 participants statewide. To-date, we have already received 180 registrations and expect to achieve the target as the issues that will be discussed at the forum are relevant to the development of the halal industry," he said.
He said MCCM has recommended the government carry out an amnesty programme for taxpayers, especially those who had not been paying their income taxes according to the fixed rate for the past five to ten years.
"By now, some of them would have realised their folly and want to make things right, but the fear and burden of the stiff penalty rate are preventing them from doing so.
"The proposed programme would encourage them to come forward and settle their income taxes and inevitably, this would increase the national income," he said. — Bernama