For a good cause: Dr Wee (centre), MCA Wanita chief Datuk Wong You Fong (third from right), MCA Youth chief Ling Tian Soon (fourth from right) and other donors sounding the gong during the fundraising event.
JOHOR BARU: Special consideration should be given to hospitals that operate on a not-for-profit basis and are not enjoying financial benefits from public funds, says Datuk Seri Dr Wee Ka Siong.
He said besides Universiti Tunku Abdul Rahman (UTAR) Hospital, there are more than 10 such not-for-profit hospitals nationwide, including Assunta Hospital in Petaling Jaya, Tung Shin Hospital in Kuala Lumpur, as well as Lam Wah Ee Hospital and Mount Miriam Cancer Hospital in Penang.
Such healthcare facilities have a noble objective, which is to assist the people using funds raised through public donation, he added.
“After all, they are not paying out any dividends, nor are they enjoying any benefits (from the public funds). In fact, they are helping the government save money (on healthcare for the people), and thus they should be given continuous tax exemption to facilitate their operations.
“Based on these two principles, I hope the government can give them tax exemptions,” he said during the Johor Baru MCA fundraising dinner for Universiti Tunku Abdul Rahman (UTAR) Hospital in Taman Johor Jaya here on Sunday.
On the UTAR tax exemption issue, Dr Wee said he, together with its board of trustees, would continue engaging with the Finance Ministry and relevant agencies to seek a long-term solution on its tax exemption status.
He said when the UTAR Education Foundation was formed, its intention was to establish a university and develop education for the people, and it was never for private interest.
Despite the tax exemption and cancelled taxes and fines, a long-term solution to the issue still needs to be sought, he added.
“Some people do not understand this issue, and they just spin it as though UTAR has never been given tax exemption. We received tax exemptions back then. But because of their regulations and guidelines, there may be some compliance issues.
“I believe that it is not an exorbitant request on our part. It is within the law, so it can be allowed,” he added.
UTAR came under the spotlight following recent reports that the Inland Revenue Board (LHDN) slapped the not-for-profit university with RM83mil in outstanding taxes and penalties.
In the latest letter sent to UTAR on Oct 8, it was stated that the RM83mil arrears owed to LHDN for outstanding taxes and penalties had been cancelled.
The controversy surrounding the university intensified when it received a letter from the Treasury, which stated that the higher education institution must begin paying taxes from the Year of Assessment 2024.
During the 71st MCA annual general meeting on Oct 20, Dr Wee requested the government give permanent tax exemption status to UTAR and the foundation, which owns and operates UTAR.
Deputy Prime Minister and Barisan Nasional chairman Datuk Seri Dr Ahmad Zahid Hamidi, who attended the AGM, expressed confidence that the indefinite matching grant allocation had room for further discussion.
It was reported that UTAR, which was set up in 2002, had never needed to pay tax as the university is owned by the foundation and established as a company limited by guarantee. The foundation obtained the permit to establish the university.
UTAR was officially launched on Aug 13, 2002, as a not-for-profit private university aimed at providing affordable and quality education.
During Sunday’s fundraising event, Dr Wee sang a song by Hong Kong artiste, Jacky Cheung, garnering a donation of RM52,000 for the cause. In total, the event raised RM200,000 for UTAR Hospital.
