Monday, October 15, 2012

7.3% Individual audited by IRB case closed without audit finding

According to Auditor-General's Report 2011, only 7.3% of Individual with business income audited by IRB case closed without audit finding. Here are the issues highlighted in the report:
i.                     1,244 (7.3%) of 17,085 individuals audited have their cases closed without audit findings because there was no evidence of tax evasion even though their cases were selected by the risk analysis methodology;
ii.                   1,073 (57.3%) of 1,873 individual files checked at 17 IRBM branches showed that additional tax raised and penalties imposed amounted to RM33.24 million were resolved late between 6 to 941 days;
iii.                  additional taxes raised as a result from field audit findings as well as estimated assessment amounted to RM1.21 million were not issued to 36 taxpayers; and
iv.                 increase in tax was not imposed on cases of tax arrears and failure to comply with tax installment payment scheme resulting in loss of revenue to the Government.

In the report also reveal certain property owners yet registered income tax file & action not taken to detect the property owners. Here are the issues highlighted on Income Tax of property owner:-

i.                     some property owners did not have income tax file;
ii.                   information was not uploaded into the Enterprise Taxpayer Profile (ETP);
iii.                  actions were not taken to track down the property owners;
iv.                 selection of cases for tax audit either by field audit or desk audit on property ownership was not given due attention; and
v.                  restriction orders from leaving the country were not issued and civil suit actions were not taken against property owners with tax arrears.