Introduction
A fair, transparent and equitable tax administration system will enhance public confidence in the tax system. Compliance with tax laws must be strictly enforced and tax offences such as non-compliance and tax evasion should be penalized in accordance with the provisions of the Income Tax Act 1967 (ITA), and latest updated law.
Part I
Under the Self-Assessment System, tax audit is a primary activity of the Inland Revenue Board of Malaysia (IRBM). It is aimed at enhancing voluntary compliance with the tax laws and regulations. A taxpayer can be selected for an audit at any time. However, it does not necessarily mean that a taxpayer who is selected for an audit has committed an offence.
The IRB Audit framework is to ensure that tax audit is carried out in a fair, transparent and impartial manner. This framework outlines the rights and responsibilities of audit officers, taxpayers and tax agents in respect of a tax audit.
Part II
Tax investigation is conducted with the objective to detecting tax evasion. Books of records are seized from a taxpayer’s office by raid or surprise ambush. It would then be examined by investigation unit officers at the investigation office.
Objectives
Generally, this framework aims to:
- Assist audit officers to carry out their tasks efficiently and effectively
- Assist taxpayers in fulfilling their obligations
- What tax investigation is all about
Methodology
Power-point presentation, examples, dicussion
Who Should Attend
Directors, Accountants, Internal Auditors, Executives involved in record keeping, accounting & tax computation
Course Content
Part I, Tax Audit
1. INTRODUCTION
2. STATUTORY PROVISIONS
3. WHAT IS AUDIT?
4. OBJECTIVE OF TAX AUDIT
5. YEARS OF ASSESSMENT COVERED
6. SELECTION OF CASES
7. HOW A TAX IS CARRIED OUT
7.1 Audit Venue
7.2 Commencement of an Audit
7.3 The Visit 5
7.4 Examination of Records
7.5 Audit Time Frame
7.6 Settlement of Audit
8. RIGHTS AND RESPONSIBILITIES
8.1 IRBM
8.2 Taxpayer
8.3 Tax Agent / Representative
9. CONFIDENTIALITY OF INFORMATION
10. OFFENCES AND PENALTIES
11. COMPLAINTS
12. PAYMENT PROCEDURES
13. APPEALS
Part II, Tax Investigation (effective from 1st January 2023)
Tax investigation is conducted with the objective to detecting tax evasion. Books of records are seized from a taxpayer’s office by raid or surprise ambush. It would then be examined by investigation unit officers at the investigation office.
Tax Investigation
1.TAX LAW, SECTION 114
2. HOW THE TAX LAW APPLIES
2.1 General Law
2.2 Willful Evasion
2.3 Assistance in, or advice with respect to, the preparation of a return
2.4 Examination of specific claims for deductions, allowances, reliefs or rebates
2.5 Differing position or stand
2.6 Examples of circumstances or situations
2.7 The Consequences of Willful Evasion, Intent to Evade or Assisting Any Other Person to Evade Tax
2.8 The Consequences of Giving Assistance or Advice that Results in the Understatement of Liability for Tax of Another Person
3. APPEALS
4. ANTI MONEY LAUNDERING OFFENCE
5. SUMMARY OF OFFENCES & PENALTIES
6. PRACTICAL EXAMPLE
CERTIFICATE OF PARTICIPATION
