Thursday August 2, 2012
Compensation of 2% for taxpayers who get delayed reimbursement
By YUEN MEIKENG
PETALING JAYA: The Inland Revenue Board (IRB) will pay those who overpaid their income tax 2% for late refunds. However, compensation may be denied if IRB has a strong reason for the delay such as difficulty in processing tax returns because they are incomplete or unsupported.
“The compensation is to be fair to taxpayers and enhance efficiency in tax administration,” said IRB chief executive officer Tan Sri Dr Shukor Mahfar.
“Those who file their income tax returns before the deadline are eligible for the compensation,” he said.
The due date for salaried individuals to file tax returns is April 30 while the deadline for business income earners is June 30.
Companies must file their income tax returns no later than seven months from the expiry of their accounting period.
Dr Shukor added: “The 2% compensation is calculated on a daily basis, 90 days after the due date for e-Filing or 120 days after the due date for manual tax filing.”
It is learnt that some taxpayers received their refunds three years late.
- Full story in The Star today.