IRB aims for more than RM1 billion in taxes with penalties reduced

The Inland Revenue Board (IRB) hopes to collect more than RM1 billion in tax revenue this year following the reduction of penalties on taxpayers.

Chief Executive Officer Tan Sri Dr Mohd Shukor Mahfar said last year the board managed to collect close to RM1 billion.

"Last year, we give a similar reduction but we worked on a small scale but this year we are going to double our efforts to achieve our target," he told reporters after opening a half-day seminar titled, "A Year into Final Tax : Issues and Challenges" organised by the IRB and Malaysian Employers Federation (MEF).

The IRB recently announced a reduction of penalty for taxpayers who voluntary disclosure between March 1 and Dec 15, 2016.

The reduction was for those who have not submitted their income tax return forms or petroleum statement forms for years as well as those who wish to declare the correct information in the tax forms which had been submitted earlier.

Prime Minister Datuk Seri Najib Razak had announced in the recalibrated 2016 Budget that the government would consider relaxing the imposition of penalties on taxpayers to encourage them to come forward to report their incomes for previous years.

Mohd Shukor said beginning this year, the board would assist taxpayers who are affected by the challenging economic situation but urged them to abide by IRB guidelines.

Asked on reports of high tax evaders among professionals like lawyers, doctors and also artistes, he said the board would target them this year.

"Every professional is in our radar, people know them very well and as professionals they must behave accordingly as a good taxpayer," he added.