By MOHD AMIRUL RADZUAN
THE IMPORTANT PROVISIONS OF INCOME TAX-RELATED ACTS RELATED TO PENALTIES
The revenue authorities of Malaysia set a particular goal to maintain the taxation policy in the country. Late submission of taxation becomes a common mistake of common people. The government created some acts as well as sections to remove the common mistake. According to Sing & Bidin, (2020), the government creates some penalties based on the failure to pay to furnish income as well as failure to furnish a return of income tax.
On the other hand, Matar, (2023), stated that the government based on offences provides different types of penalties. The taxpayers have to submit their tax returns to the IRB or Inland Revenue board. IRB mainly provided deadlines to the taxpayers and missed deadlines become a major offence for the taxpayers. Most of the companies in the country maintain their financial statement as per the Companies Act 2016 (Pwc, 2023). Tax received by the government based on the Income tax act 1967.
The taxation policies are made based on individual income and the government adjusts tax-related loss as per the regulation of the act. Aggregate income is another important factor and this factor is demonstrated in section 77B (Sanusi et al. 2021). The loan approval policies are the parts of acts and individuals have to pay major penalties for the land-related offences. The individual has to pay major penalties to provide incorrect information related to tax liability. Section 113(1) provided penalty-related information and individuals have to pay 200% tax for any liability-related offences (Incometaxmanagement, 2023).
The finance minister of Malaysia approves the loan policies. The credit or loan agreement was applied in Malaysia with the proper approval of ministers. The loan is approved by the operational headquarters of an organisation. There is director general approved loan under the section 150. An individual has to pay penalties to obstruct the duties of IRBM and it becomes part of section 116 (Landco, 2023). Malaysia demonstrated the actual definition of federation territories and territorial areas are become part of taxation policy.
Offshore business activities are part of the non-chargeable tax. The government want to gain profit from business with the help of proper taxation policies. Rents, premiums as well as rents are part of chargeable income tax in Malaysia. Act 119 (a) stated that business organisations have to pay RM 10000 for failure to maintain proper records of financial documentation (Synergytas, 2023). The income tax department of Malaysia reduced the actual amount of tax under section 113(2). Incorrect information related to business under the part of the chargeable tax. Reduction of tax penalties becomes applicable from the year 2020. The pandemic hugely influenced taxation policy of this country. The government reduced penalties under section 113 (2) (Razak & Bidin, 2019). The government reduced 15% of penalties for the first offence under section 113(2).