By MOHD AMIRUL RADZUAN
THE POSITIVE SIDE OF GAINING KNOWLEDGE ABOUT TAX
In the Companies Act 2016, the guidelines for distributing dividends can be found in section 131. This section is based on two fundamental principles:
1. Dividends must be paid using the company’s profits.
2. Dividends should not be paid if their payment would render the company insolvent. As the responsibility for authorizing dividend payments falls on the directors, they must ensure that the company remains solvent even after distributing dividends.
Section 133(2) outlines the legal liability of directors and managers who intentionally authorize or allow dividends to be paid out of what they knew were not actual profits. They become accountable to the company for the amount that exceeds the value of legitimate dividend distribution. The Companies Act 2016 also introduces a new liability for company members. Section 133(1) specifies that the company has the right to reclaim the excess amount of dividends that a
shareholder received if it surpasses what could rightfully have been distributed. This is applicable unless the shareholder can demonstrate two things:1. They received the dividends in good faith.
2. They were not aware that the company did not meet the solvency requirements. In essence, the Companies Act 2016 establishes rules for dividend distribution centered around the
utilization of profits and the prevention of insolvency. It holds directors, managers, and shareholders accountable to ensure dividends are paid properly and within legal bounds.
The government of Malaysia provide some basic infrastructure related to taxation policies in Malaysia. The revenue played a big role that improving the infrastructure of the country. According to Kurniawan, (2020), the knowledge related to tax, compliance costs as well as morale for tax compliance help to remove the frequency of tax-related offences.
On the other hand, Ullah et al. (2020) stated that proper examination related to fiscal policies helps to improve the infrastructure of the Asian economy. Taxation is the most significant factor for each country. Finance-related expenditure hugely improved through proper taxation policy. Self-employed, corporate as well as tax officers contributed few taxes towards the country for economic as well as social development. Offence related to a 30% tax increase than estimated tax under the part of section 107B (Phl.hasil, 2023). All authorities of revenue are required to maintain all laws related to tax compliance. The actions related to t6ax offences are the most important part of the study.
According to Al-Zaqeba & Al-Rashdan, (2020), tax compliance become one of the major issues in each country of the world. On the other hand, Tan et al. (2020) stated that the government to resolve tax offence-related issues created the GST prevention model. Section 112 (1), stated that the individual has to pay penalties for failure in the income tax return (Landco, 2023). Improvement knowledge about tax deductions as well as considerable amounts helps to remove offences. The government of Malaysia spread knowledge related to economic as well as financial turmoil. The government spread positive knowledge related to tax consumption policies.
Various campaigns as well as digital technologies help to spread knowledge related to taxation. Sales taxes on business as well as VAT or value-added tax are the most important factors that remove tax-related offences. The government used various theories to spread positive ideas to pay taxes on time. The government use taxation theory to understand the ability of payment of individuals. The principles of people’s minds related to tax can improve through this theory (Jha & Gozgor, 2019). People can understand the positive side of tax payment with the proper effort of the government.
The government used various innovative technologies to spread positive stories related to tax payments. The government shared the political pressure as well as major principles related to tax. The government of Malaysia always want to maintain horizontal equity in the country. The government created some particular principles related to taxation. The principles help to collect important resources that improve taxation policies. Public services hugely improved with the help of proper principles related to taxation policies. The government used various advanced technologies to remove the obstacles related to tax payments. The E-fling process helps to provide a facility for digital tax payment (Allcott, Lockwood & Taubinsky, 2019).
Tax authorities with the help of various innovative technologies easily solve the queries of common people. Economic efficiency is hugely improved through proper maintenance of all principles. Economic decisions as well as economic resources are properly maintained through proper taxation knowledge.