Sunday May 1, 2011

Reward for tax informers

By WONG PEK MEI
pekmei@thestar.com.my

PETALING JAYA: The Inland Revenue Board (IRB) will reward and protect the identity of whistleblowers who provide information and documents on those who evade tax payment.

These whistleblowers would be given a percentage of the tax recovered from those found guilty of the crime, IRB corporate communications director Mazlan Wan Chik said.

Their share will depend on the amount of data and information provided, he said.

“Those who are able to provide reliable, accurate and concrete proof that the person committed a crime by not paying or under-declaring their tax will be handsomely rewarded,” he told The Star.

In an interview, Mazlan said IRB would safeguard the identity of informers as stipulated under the Whistleblower Protection Act provided they did not share the information with “third parties”.

“Some of those involved may be prominent figures, hence complainants fear for their lives. We will take precautions to ensure that our actions will not lead to the identity of the informer being revealed,” he said.

The Act, which was gazetted in June last year and came into force on Dec 15, aims to protect individuals who disclose information on corrupt practices or improper conduct in the public and private sectors.

Mazlan said IRB received about 650 reports last year of people who evaded taxes. In 2009, a total of 500 reports were received.

“All the 650 reports have been settled,” he said, adding that he hoped more people would come forward to report such wrongdoings.

Tax evaders would usually give the excuse that they knew how to run a business and compute their profit and losses but not taxes, he said.

Mazlan said so far IRB had received reliable information from the public on those who evade tax payment.

“However, if informers are found to provide false information or allegations, IRB will take action against them,” he said.

Asked about IRB's special unit to monitor those who became millionaires through multi-level marketing schemes and online businesses, he said: “It is a part of the Compliance Unit, which monitors those who have sources of income derived in Malaysia.”

He said IRB offices in Penang, Johor and the Klang Valley would focus more on MLMs as these businesses were rampant there.

Those found guilty of wilful tax evasion can be charged under Section 114 of the Income Tax Act. Offenders can be fined between RM1,000 and RM20,000 or jailed up to three years or both.

They would also need to pay triple the amount of tax that had been undercharged.

For information on how to lodge a report on tax evaders or those who under-declare their tax, go to www.hasil.org.my or call 03-62091000.

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Sunday May 1, 2011

Reward for tax informers

By WONG PEK MEI pekmei@thestar.com.my

By WONG PEK MEI
pekmei@thestar.com.my