Report and pay your taxes, because you are a national hero! Being a compliant taxpayer enables the Government to implement various facilities and development programmes, in addition to safeguarding the welfare of the people. – ART CHEN/The Star
NEW years are a time for new resolutions. For most people, this ties back to becoming a better person.
Why not kick off your new year with a clean slate by clearing off your tax arrears?
At the same time, while it is undoubtedly common to think of paying less taxes or not paying taxes in the first place, but think of it from this perspective: Tax collection impacts a country’s ability to run smoothly and at the same time, it also drives nation-building efforts. In this way, it benefits everyone.
Seen this way, there’s a clear need to increase basic knowledge of taxation and get rid of the bad habit of taking the responsibility of reporting and paying taxes to the Inland Revenue Board of Malaysia (IRBM) lightly.
Self-assessment for tax arrears
There’s more than one way to pay your taxes.
Just like debt, tax arrears bring a negative impact to all involved. And just like the interest amount you have to pay to the bank for credit card purchases, the greater the amount of arrears, the higher the interest – in this case, tax – you have to pay.
So how do tax arrears come about? Whatever the reason, failure to pay your taxes within the stipulated time frame is the root cause.
Not to mention that with the world opening up, holidays abroad would be a big thing that many look forward to. Now imagine those plans being cancelled against your will when you are literally stopped at the gate and prevented from leaving the country by the Malaysian Immigration Department.
Not paying your tax arrears could also see you brought to court for legal action!
The ultimate horror, however, is that your savings in the bank, stocks, jewellery, property or anything of value that you own can also be confiscated or auctioned off to pay off what you owe.
Stay on the right side of tax law
That said, it’s not all doom and gloom.
The adverse effects of failing to pay tax arrears can be avoided if you pay attention to the provisions of the tax law set by the Government. The law requires individuals who receive employment income to pay annual tax no later than April 30 each year and June 30 for individuals who do business. For companies, it is mandatory to pay all tax amounts within seven months after the closing date of the company’s accounting period.
You can, however, pay your tax arrears (if any) by Dec 30 this year through IRBM’s online service, ByrHASiL.
Learn the basics of taxation
Realising the importance of taxation knowledge for all, IRBM advocates the concept of tax compliance through awareness, education and service.
Pay your tax arrears by Dec 30 to kick off your new year with a clean slate.
To do so, it offers various programmes to educate the public, starting at the school and higher education institute levels, because these groups are potential taxpayers who need to be educated early on the importance of taxes.
Notwithstanding that, there are many mediums that can be used as a reference, including through the IRBM official portal, or any information that is proven to be valid on the internet. Through the EduZone platform on its website, you can also get brochures and articles related to taxation. It is also equipped with videos including IRBM interview programmes on electronic media, tax awareness and education videos that can be accessed by everyone.
Referrals can also be made through IRBM’s official social media platforms and the portals of certified taxation firms that specialise in the field of taxation.
Refer to the experts
One thing to remember, though. Make sure you refer to accurate and recognised information, so as not to get lost in your pursuit of taxation knowledge.
If you have any questions about taxes, contact IRBM for feedback and advisory services. The IRBM call centre, called the HASiL Care Line, can be reached at 03-89111000 or +603-89111100 (overseas) every day from 9am to 5pm, except Saturday and Sunday.
Alternatively, you can contact the customer care officers nearest to you through their phone numbers (including handphone numbers!) posted on its website.
You can also access IRBM’s other communication channels, such as the HASiL Live Chat, Facebook, Twitter, Instagram and customer feedback form.
Check your tax arrears with MyTax
Still worried? For immediate relief, visit MyTax, IRBM’s easy online review method that enables you to review, declare and get the latest tax information.
A check of tax arrears or excess tax payments can also be made at the IRBM official portal, which displays the amount of tax arrears, or excess tax payments, after taking into account assessments, payments and other factors for the same assessment year.
Do note, however, that the amount of tax arrears in MyTax does not take into account payments, eligible increases or assessments raised after the ledger update date, if any.
If you have any doubts, just contact the collection unit at the branch handling your file, or contact the HASiL Care Line. Your tax position statement can also be printed through the e-Lejar application, which can also be accessed via MyTax.
Discuss tax instalments
Alright, so what happens if you have a large amount of tax arrears to pay off? Not to fear.
Understanding that not every taxpayer can afford to pay a lump sum to clear their tax arrears, IRBM is always open to holding discussions on instalment payment applications.
Approval of instalment payments will be considered if you provide relevant documents, such as monthly cash flow statements, bank statements for the most recent months, a list of monthly commitments and the desired number of instalments.
If you plan and manage your tax payments wisely, you can stay on the right side of tax law. And do remember, you can also get a tax refund if you claim eligible tax relief when filling out the e-Filing next year.
To do so, save the 2022 expense receipts for the purpose of tax relief to make it easier for you to refer to later on.
More importantly, being a compliant taxpayer also enables the Government to implement various facilities and development programmes, in addition to safeguarding the welfare of the people.
On that note, as a timely reminder, be sure to pay your tax arrears (if any) by Dec 30 this year through IRBM’s online service, ByrHASiL.
Remember, report and pay taxes because you are a national hero!
