Service Tax (Rate of Tax) (Amendment) Order 2010

The Order will come into operation on 1 January 2011.

The Order amends the Service Tax (Rate of Tax) Order 2009 [P.U. (A) 468/2009] in subparagraph 3(a) by substituting for the words “5%” the words “6%”.

IRB projects 20 Percent More New Taxpayers Next Year

GENTING HIGHLANDS, Dec 14 (Bernama) -- The Inland Revenue Board is projecting a 20 per cent growth in the number of new taxpayers next year compared with an average growth of 10 per cent seen in the previous years. Deputy Director General (Compliance) Datuk Dr Mohd Shukor Mahfar said the rise was seen with the improvement in the agency's online services. "This improvement is in line with the changing information technologies and current trends where most of the transactions are made online," he told reporters after a closing ceremony for IRB's workshop on its e-Ledger and Electronic Funds Transfer (EFT) system together with the Media, on Tuesday. He said among the improvements are the introduction of two applications online by IRB which is the electronic tax ledger for taxpayers or e-Ledger and the EFT. These applications would make it easier for taxpayers to carry out their responsibilities without having to come to the tax office. On the EFT, he said IRB would be expanding the use of EFT among taxpayers to make it easier for taxpayers to get any tax refunds. Through the EFT, taxpayers who had overpaid would get their tax refunds not more than three days after tax payments had been made compared with the present practice where cheques are issued after a longer period and which is also more risky. With the EFT, IRB would be able to also minimise the problems arising from tax refunds made through cheques where there are instances that these cheques are not received by taxpayers, cheating cases involving cheques and also expired cheques. The use of EFT in fact will bring about cost savings for the tax department such as the cost of issuing cheques, maintenance of cheque machines and the delivery of cheques. In 2009 alone, the IRB issued more than 671,000 cheques for tax refunds. The EFT is an online tax payback application developed by IRB to facilitate and speed up refunds to taxpayers.

BNM may increase Interest Rates if CPI rises to 3.3 Pct in 2011

KUALA LUMPUR, Dec 14 (Bernama) -- A rise in consumer price index (CPI) may impel Bank Negara Malaysia (BNM) to resume increasing interest rates, by 25 basis points each in the second and third quarter of 2011, respectively.

The central bank, however, is expected to keep its monetary policy on hold in the first quarter of 2011 until there was more clarity on the global picture and given its "moderate inflation" projection through 2011.

"We are more concerned about CPI inflation, expecting it to rise to 3.3 per cent in 2011. This should impel BNM to resume raising rates, with 25 basis point hikes each in quarter two and three of 2011," Nomura Securities International Inc said in its 2011 Global Economic Outlook released on Tuesday.

Monetary conditions tightened in 2010 via real effective exchange rate appreciation and three 25 basis points rate hikes bringing the overnight policy rate to 2.75 per cent.

Monetary conditions should also tighten through further ringgit appreciation, given the large current account surplus and potential for larger capital inflows, said Nomura.

"We do not expect Malaysia to impose controls on inflows in the near future," it added.

BNM recently further liberalised the capital account and set a 70 per cent loan-to-valuation ratio cap on third mortgages in a bid to curb property market speculation.

More macro-prudential measures are likely, it said.

Monthly Tax Deduction (MTD) online payment

The Inland Revenue Board has launched the e-PCB and e-Data PCB systems for use by employers. Employers may check the format and upload the CP 39 text file online, and make PCB payments online, using Financial Process Exchange (FPX)

Members may view the details at http://www.hasil.gov.my/index.php?lgv=2&chg=1

Procedure On Submission Of Amended Return Form (GPHDN 01/2010)

The Inland Revenue Board (IRB) has issued the Operational Guidelines on 30 November 2010 with respect to the Procedure on Submission of Amended Return Form (GPHDN 01/2010). Some of the salient points clarified are as follows:

i) Where the Amended Return Form or Borang Nyata Terpinda (BNT) is submitted on or before the filing due date of the original Income Tax Return Form or Borang Nyata Cukai Pendapatan (BNCP), it will be treated as normal appeal (Paragraph 3.1).

ii) Self-amendment is only allowed once for a taxpayer who has filed the BNCP on or before the filing due date (Paragraph 3.2).

iii) Self-amendment is only available to understatement or underdeclaration of income, expenses/claims overstated and capital allowances/incentives/reliefs overclaimed (Paragraph 3.3).

iv) Submission of BNT will be regarded as voluntary disclosure for understatement of income and penalty will be imposed in accordance with the rates as stated in the Tax Audit Framework.

v) Any tax payable, including penalties, must be settled on the date the BNT is submitted, failing which penalties will be imposed.

Members may view the Operational Guidelines at the website of the Institute at http://www.ctim.org.my/technical_techdev_direct.asp or at the website of the IRB at http://www.hasil.gov.my/pdf/pdfam/GPHDN1_2010.pdf.

CIRCULAR MF16/2010: MALAYSIAN INSTITUTE OF ACCOUNTANTS ISSUES REVISED BY-LAWS

CIRCULAR MF16/2010: MALAYSIAN INSTITUTE OF ACCOUNTANTS ISSUES REVISED BY-LAWS ON PROFESSIONAL ETHICS PURSUANT TO THE REVISED CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS BY THE INTERNATIONAL ETHICS STANDARDS BOARD OF ACCOUNTANTS PUBLISHED BY THE INTERNATIONAL FEDERATION OF ACCOUNTANTS

08 Dec 2010

Circular MF16/2010

TO ALL MEMBER FIRMS

MALAYSIAN INSTITUTE OF ACCOUNTANTS ISSUES REVISED BY-LAWS ON PROFESSIONAL ETHICS PURSUANT TO THE REVISED CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS BY THE INTERNATIONAL ETHICS STANDARDS BOARD OF ACCOUNTANTS PUBLISHED BY THE INTERNATIONAL FEDERATION OF ACCOUNTANTS

The Council of the Malaysian Institute of Accountants (MIA) has approved the issuance of the revised By-Laws on Professional Ethics pursuant to the revised Code of Ethics for Professional Accountants by the International Ethics Standards Board of Accountants (IESBA) published by the International Federation of Accountants (IFAC).

As part of the Institute's membership obligations, the By-Laws have incorporated the provisions of the revised Code of Ethics for Professional Accountants issued by IESBA with appropriate modifications to suit the Malaysian regulatory, legislative and professional environment. The By-Laws also contain suitable amendments and certain provisions of the Institute's By-Laws (On Professional Ethics, Conduct and Practice) issued January 2007.

As a member body of IFAC, the Institute is committed to adopting the provisions issued by IFAC, in so far as the provisions are not inconsistent with national laws and requirements. The Revised By-Laws will come into effect in January 2011.

The Revised By-Laws have been updated in the MIA Handbook. Members can download a copy of it at http://www.mia.org.my/handbook/bylaws_new or visit the Institute's website at www.mia.org.my under Ethics.

MIA staff has prepared an attachment below of the summary of comparison between IESBA's revised Code of Ethics for Professional Accountants and MIA's revised By-Laws on Professional Ethics. Members can also refer to http://www.ifac.org/Ethics/Resources.php which is prepared by IESBA for further information on the revised Code of Ethics for Professional Accountants.

Please be guided accordingly.

CIRCULAR MF15/2010: PROPOSED INTERNATIONAL AUDITING PRACTICE STATEMENT 1000

01 Dec 2010

Circular MF15/2010

TO ALL MEMBER FIRMS

1. PROPOSED INTERNATIONAL AUDITING PRACTICE STATEMENT 1000
2. PROPOSED INTERNATIONAL STANDARD ON RELATED SERVICES 4410

The Institute is pleased to inform members that the Council has approved the release of the exposure draft on International Auditing Practice Statement ("IAPS") 1000, Special Considerations in Auditing Complex Financial Instruments and International Standard on Related Services ("ISRS") 4410, Compilation Engagements for distribution to members, regulatory bodies and other interested parties for comment.

The exposure draft is drawn primarily from the pronouncement issued by the International Auditing and Assurance Standards Board ("IAASB") of the International Federation of Accountants.

PROPOSED INTERNATIONAL AUDITING PRACTICE STATEMENT 1000, SPECIAL CONSIDERATIONS IN AUDITING COMPLEX FINANCIAL INSTRUMENTS

The proposed IAPS 1000 highlights practical considerations for auditors when dealing with complex financial instruments. The proposed IAPS 1000 gives particular emphasis to auditing considerations relating to valuation and disclosure issues for financial statement items measured at fair value.

Along with the proposed IAPS 1000, the IAASB is also exposing for comment proposed changes to the current Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services which explains the authority of this and future IAPSs.

		Deadline for comment
ED Preface/2010, ED IAPS 1000/2010	Proposed Amendments to the Preface to the International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements IAPS 1000 Special Considerations in Auditing Complex Financial Instruments Click HERE to download ED Preface /2010 and ED IAPS 1000/2010.	31 Dec 2010

PROPOSED INTERNATIONAL STANDARD ON RELATED SERVICES 4410, COMPILATION ENGAGEMENTS

The proposed ISRS 4410 is the first step in the IAASB's work to create robust standards for services that can be used by entities that are either not required or do not elect to be audited to meet their business reporting needs. Through a compilation engagement, practitioners can provide significant benefit by applying their expertise in accounting and financial reporting. This expertise is applied to assist the management of an entity in preparing and presenting historical financial information for use by the entity’s internal or external stakeholders.

		Deadline for comment
ED ISRS 4410/2010	ISRS 4410 Compilation Engagements Click HERE to download ED ISRS 4410/2010.	31 Jan 2011

Comments may refer to any specific principles, paragraphs or group of paragraphs and suggestion for alternative solution or wording with supporting reasons. These comments will be collated and, where appropriate, incorporated into the proposed exposure drafts before being issued in final form.

Comments should be submitted in writing and are to be received by the deadline.

Members can download the said exposure draft from our website at http://www.mia.org.my under the Technical-Auditing-Circulars link.

Please be guided accordingly.


HO FOONG MOI (MS)
Executive Director
On behalf of the Registrar