Recent tax amendment or harrassment?

ARCHIVES 2011

By admin-s On Nov 14, 2011

What this mean is that IRB staff will not be encouraged to be efficient. If a cat wants to eat a mouse, it has to chase the mouse down, catch it before she can eat it. This piece of law will remove incentive or reason for IRB staff to be efficient. IRB can just direct tax payer to pay whatever amount IRB fancy.

By Lee Wee Tak

In my pre-uni studies, my economics teacher taught me that tax is a way for government to take money from the rich to aid the poor, and help to make our lives better by providing things like street lights, education and health care at affordable cost since these are good for public and not for private profits.

However, after the routinely infuriating and forgetten-after-a-while Auditor General reports, and skyrocking national debts, I wonder if the recent tax amendments is really good for the public, or “maximise tax base” (in layman’s word gasak as much as possible) to cover the endless wastage, leakage and every-can-see-except-MACC corrupt practices.

Budget 2012 has introduced some eyebrow raising proposals. Although we have the customary high praise to heavens from the usual BN suspects, even some MCA fellows expressed their reservation over some proposals, most probably they have received protests from business community they are closed to or belong to.

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http://www.mysinchew.com/node/65627

MCA objects to proposed changes in Income Tax Act

2011-10-26 13:43

KUALA LUMPUR, Oct 26 (Bernama) — MCA objected to the proposed changes in the Income Tax Act which would give the director-general of Inland Revenue Board sole discretion over late or incorrect submissions, said its president Datuk Seri Dr Chua Soi Lek.

“If the amendments are passed, the new Section 107D will enable the director-general to direct taxpayers to make advance payments if he has reasons to believe that taxpayers have not submitted their returns correctly, even if no assessments were issued.

“Meanwhile, the proposed changes to Section 81 would eventually lead to the absolute power of the director-general to disregard any information, beyond the expiry of the specified time,” he said when contacted.

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Let’s examine the above 2 proposals in greater details, and some others as well.

Advance payment of tax by installments (Section 107D)

Before:

No law to empower IRB to direct a tax payer to start paying tax installments before an assessment or composite assessment is made. (Assessment = calculation of the amount of tax you owe)

Now:

It is proposed that IRB be empowered to direct a tax payer to pay by installments and in advance (isn’t this a hidden national debt?) before any assessment or composite assessments are made.

What this mean is that IRB staff will not be encouraged to be efficient. If a cat wants to eat a mouse, it has to chase the mouse down, catch it before she can eat it. This piece of law will remove incentive or reason for IRB staff to be efficient. IRB can just direct tax payer to pay whatever amount IRB fancy.

Collection target issue resolved. The amount directed maybe more than necessary but IRB staff can take their own sweet time to calculate and find out while businesses bearing risk and general economic environment will struggle with their cashflow.

Rakyat diutamakan, civil servants deserve bonus across the board and cannot be removed easily.