GST Guides (Draft)

The Royal Malaysian Customs (RMC) has released the following GST Guides (draft) on the GST Portal (http://www.gst.customs.gov.my/portal/page/portal/MYGSET) for public comment. 

Industry Guides - AuctioneerSpecific Guides – Transfer of Business as a Going Concern (TOGC)

 

Members are requested to submit their comments to the Institute at kslim@ctim.org.my or secretariat@ctim.org.my so that the Institute may provide comprehensive feedback to the Royal Malaysian Customs for consideration.

RPG 10 - GUIDANCE ON THE ROLE OF REPORTING ACCOUNTANT IN A DUE DILIGENCE WORKING GROUP

The Institute is pleased to inform members that the Council has approved the issuance of the Recommended Practice Guide (“RPG”) 10 as guidance to members.

RPG 10 is issued to provide clarification on certain aspects regarding the participation by Reporting Accountants (“RA”) in Due Diligence Working Groups established in connection with submissions to the Securities Commission, Circular to Shareholders and offering documents such as Prospectuses. It also provides guidance on the manner in which the RA expresses the terms of participation and reports on the RA’s work, and specifically also addresses the issuance of comfort letters.

The guidance is jointly developed by the Institute and the Malaysian Institute of Certified Public Accountants.

Members can download RPG 10 – Guidance on the Role of Reporting Accountant in a Due Diligence Working Group from the Institute's website at this link http://www.mia.org.my/new/1_tech_detail.asp?tid=1&rid=4&id=950.

Please be guided accordingly.


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


Click HERE to download the RPG 10 - Guidance on the Role of Reporting Accountant in a Due Diligence Working Group.

RPG' 8 – ILLUSTRATIVE LETTER OF ENGAGEMENT – STATUTORY AUDIT FOR SINGLE ENTITY AND GROUP

10 Aug 2011

Circular MF19/2011

TO ALL MEMBER FIRMS

MIA RELEASES REVISED RECOMMENDED PRACTICE GUIDE (''RPG'') 8 – ILLUSTRATIVE LETTER OF ENGAGEMENT – STATUTORY AUDIT FOR SINGLE ENTITY AND GROUP

The Institute is pleased to inform members that the Council has approved the release of the revised Recommended Practice Guide (''RPG'') 8 as guidance to members.

The guidance is revised pursuant to the clarified International Standard on Auditing 210, Agreeing the Terms of Audit Engagements which is effective for audits of financial statements for periods beginning on or after 1 January 2010.

Members can download RPG 8 – Illustrative Letter of Engagement – Statutory Audit for Single Entity and Group from the Institute's website at this link http://www.mia.org.my/new/1_tech_detail.asp?tid=1&rid=4&id=951.

Please be guided accordingly.


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


Click HERE to download the RPG 8 - Illustrative Letter of Engagement - Statutory Audit for Single Entity and Group.

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.

Penalty on Late Filing of Tax Returns – Further Developments

The Institute would like to inform that Encik Mohd Sait has responded to our appeal on 1 August 2011.  The IRB’s stand is that the new penalty rates on late filing will not be withdrawn nor will a moratorium period be granted on the implementation of the new penalty rates. 

However, the IRB is willing to consider appeals for the imposition of penalty on a case by case basis.  Internal procedures are in place within the IRB to deal with the relevant appeal.

Currently, the Institute is still pursuing the matter with the authorities.  

In the meantime, members are reminded to submit the tax returns on due dates in accordance with the existing legislation.  

AXP e-Newsletter for Jul & Aug 2011

Please view and/or download AXP e-Newsletter from the following link:



<http://www.myaxp.com/enewsletters.php>
http://www.myaxp.com/enewsletters.php

GST Guides (Draft)

The Royal Malaysian Customs (RMC) has released the following GST Guides (draft) on the GST Portal (http://www.gst.customs.gov.my/portal/page/portal/MYGSET) this morning. The RMC invites the members of public to email their comments on these Guides to Tuan Mohd Hisham bin Mohd Nor at m_hisham.nor@customs.gov.my.

Draft Guides (i) may be viewed at http://www.gst.customs.gov.my/portal/page/portal/MYGSET/SubTopicDetailPage?_piref255_1040729_255_1040710_1040710.__ora_navig=nodeId=131 and draft Guide (ii) http://www.gst.customs.gov.my/portal/page/portal/MYGSET/SubTopicDetailPage?_piref255_1040729_255_1040710_1040710.__ora_navig=nodeId=134 :

i) Duty Free Shop

ii) Import.pdf

Members are requested to submit their comments to the Institute at kslim@ctim.org.my or secretariat@ctim.org.my so that a comprehensive feedback may be prepared and submitted to the Royal Malaysian Customs for consideration

Penalty on Late Filing of Tax Returns

Further to our e-CTIM No. 29/2011, the President has sent an email to the Deputy Director General (Tax Operations), Encik Mohammad Sait on 27 July  2011. Below is the full text of the email.

Dear Encik Mohammad

Thanks for your quick reply. We have noted the IRBM's response raised through Desire. Our main concerns are 2 fold:

a) the steep increase in penalty rates and

b) it came also as a surprise to many tax agents and taxpayers as there was little warning or advance notice given.

Section 112 ( 1) ...imposes a penalty even on conviction only a fine between RM 200 and RM 2,000 and in the past, we guess the rationale for the penalty under section 112(3) is based on the same range as that provided in Section 112(1). We sincerely hope IRBM will reconsider reducing the current penalty rate of 20% to 35 %, to a lower rate and to apply this rate on a prospective basis after adequate notice is given to the taxpayers. Tax agents and taxpayers have also been caught by surprise because the new penalty rates were not known to the public.

In addition, many of our members and those employed in the private sector have come under tremendous pressure from clients / employers for providing information on penalties based on the IRB's previous practice of imposing a penalty for late filing of between RM 200 and RM 2000 under Section 112(3).

We trust that you will consider the above points when reviewing our appeal above.

Regards

SM. Thanneermalai

President

The President and the Chairman of Technical and Public Practice Committee have been pursuing this matter closely and the Institute will continue to engage the authorities, taking into consideration the concern and interest of members.