PUTRAJAYA — Aug. 24, 2018: The Inland Revenue Board (IRB) has processed more than 90 per cent of the current year’s tax refunds for individual taxpayers as of July 31.
But due to a shortfall in the Tax Refunds Trust Fund (TBBC), priority will be given to current year taxpayers who overpaid their tax.
“As for the other categories of taxpayers, the refunds still could not be made as there is no additional allocation to the fund,” IRB Chief Executive Officer Datuk Seri Sabin Samitah said in a statement today.
Sabin also confirmed Finance Minister Lim Guan Eng’s statement that there was a shortage of transfers from the direct tax revenue collected to the TBBC.
Lim had on Wednesday stated that the previous government failed to refund RM16.046 billion in overpaid income tax and property gains tax over the past six years, which was due to 1,653,786 companies, individuals, associations and foundations as of last May 31.
The balance in the TBBC as of May 31 was only RM1.486 billion based on records with the Accountant-General’s Department, according to Lim.
Sabin said that in line with the government’s aspiration to prosper the people, IRB will give due consideration to applications from taxpayers with tax credits to be repaid to set-off the tax payable for the current year.
Taxpayers must submit the set-off applications to the IRB’s branch which manages their tax files.
For taxpayers who do not apply for set-off, their refunds will be processed depending on the allocation approved for the TBBC and the government’s financial position.
As a reminder to taxpayers, especially in the corporate sector, Sabin said several actions could be taken to avoid the need to make the repayments, such as ensuring that the tax deducted was calculated as accurate as possible.
If a company finds that the current tax estimate is lower than the original tax estimate, it may make amendments on the sixth or ninth month of its business.
Individuals with income from business sources may make amendments to the instalment amount if they find that the current tax estimate is lower than the original estimate. The amendment must be made not later than June 30 for the relevant assessment year. — Bernama