Compiled by JAROD LIM and MAHADHIR MONIHULDIN
THE implementation of the electronic invoicing system (einvoicing) from June next year will address various tax evasion loopholes, says Inland Revenue Board (LHDN) chief executive officer Datuk Mohd Nizom Sairi.
In an exclusive interview with Sin Chew Daily, he said the system would be able to track individual and business expenses and whether they tally with their income, which can come from multiple sources.
“For example, LHDN has the ability to verify income and expenses through the Tax Identification Number (TIN). If we come across an individual who has not paid taxes but has spent RM5,000 on purchasing a smartphone, it would be considered illogical,” he said.
Mohd Nizom said those who do not register their businesses but are able to make money through cash transactions will no longer be able to hide once the system is introduced.
“I know there are many unregistered individual contractors who go to the hardware store to buy building materials to do renovation work.
“Once the job is done, they are paid in cash and we are unable to trace them.
“But once einvoicing is introduced, the hardware shop will need to issue an einvoice that contains the buyers’ and sellers’ information as well as the buyers’ TIN, all of which will be included in the traceable database,” he said.
Mohd Nizom said the biggest benefit of the system is that it creates a fair competition platform for businesses.
“All registered companies must abide by the law, but unregistered companies can offer lower prices to their competitors, creating an unfair playing field.
“With the system, taxpayers need not keep physical invoices as proof of tax deduction in the future,” he added.
The first phase of the implementation will target businesses with an annual turnover of RM100mil while those earning RM50mil to RM100mil a year will use the system starting Jan 1, 2025.
By January 2027, einvoicing will become obligatory for all businesses, irrespective of their sales threshold.
> Diners had a pleasant surprise when Hong Kong artistes Charmaine Sheh, Raymond Lam and Gallen Lo came for dinner at a restaurant in Kepong, Kuala Lumpur, Oriental Daily reported.
Excited fans cheered loudly and took pictures with them. The artistes were in Malaysia to film their upcoming drama, Modern Dynasty Part 2: War of Others.
In a TikTok video, Lam was seen greeting fans and showing his gratitude for their support.
The new drama is a collaboration between Sheh and Lam; it has been nine years since they last worked together.
The drama has been filming in Malaysia and Hong Kong since July.
The above articles are compiled from the vernacular newspapers (Bahasa Malaysia, Chinese and Tamil dailies). As such, stories are grouped according to the respective language/medium. Where a paragraph begins with a >, it denotes a separate news item.
