Penalty on Late Filing of Tax Returns – Further Developments

In response to CTIM’s recent appeal, the IRB has reverted today to state that the new penalty rates will be applied as stated previously.  However, taxpayers can appeal on a case to case basis on the penalties imposed.  The IRB will consider CTIM’s suggestion to publish the new penalty rates. 

Subsequently, the President, Mr SM Thanneermalai received a phone call from the IRB to clarify the position taken by IRB as set out below:
i) Tax returns submitted to the IRB on or before 1 June 2011 and processed thereafter will have the previous penalty rates applied.  Should the new penalty rates be applied on the tax returns submitted before 1 June 2011, the taxpayers can appeal to the IRB assessment heads in the relevant IRB branches for a reduction in the penalty based on the old rates.

ii) Tax returns submitted to the IRB after 1 June 2011 will have the new penalty rates applied for late submission of tax returns.  Where taxpayers have special circumstances or valid reasons for the late filing, they should file their appeals directly to the Deputy Director General, Encik Mohd Sait at IRB’s Headquarters, Kuala Lumpur, for consideration in reduction of penalties.