Procedure for Receipt and Processing of ITRFs in Information Processing Department of the IRB

The IRB has on 15 April 2011 announced the introduction of new procedures for the receipt of ITRFs. The following are some of the salient points:

1. Acknowledgement of receipt will be given at the counter for not more than 10 ITRFs submitted. For more than 10 ITRFs submitted, the acknowledgement of receipt will be given later and tax agents will be notified when they are ready for collection.

2. With effect from the year of assessment 2010, the following ITRFs will be considered as incomplete:

i) No signature on the declaration section, taxpayer signed in the space for tax agents, taxpayer used the signature chop;

ii) Information of the taxpayer is incomplete, eg. name, IC. No./Police No./Army No./ Passport No. and designation

iii) Taxpayers did not use the ITRFs prescribed under Section 152 of ITA, eg. photostated ITRFs, ITRFs in pdf format not printed in accordance with specifications, ITRFs in pdf format printed by IRB branches without their rubber stamp; and

iv) Taxpayers not using the relevant ITRFs for the particular year of assessment

3. With effect from year of assessment 2011, the following ITRFs will be considered as incomplete:

i) Wrong computation of income tax payable/refundable, wrong splitting of chargeable income taxable at 20% rate or inserting the chargeable income without supporting computations;

ii) Inserting an incomplete or wrong accounting period;

iii) Differences in the information in the ITRFs and the information contained in the IRB’s system, e.g. name, company registration no./IC no. [Taxpayers are advised to submit Form 13 (Change of Company Name) / Form 9 (Change of Registration No.) / copy of I.C / any other document supporting the difference in information];

iv) Financial information not furnished, e.g. sales, purchases, net profit or loss, business code.

4. For Lampiran CP8D of Form E (Employer’s Return), only employees whose salary exceeds RM2,500 are required to be listed. Employers with more than 20 employees each earning a salary of more than RM2,500 are required to submit the Lampiran CP8D in softcopy (CD Rom/diskette).

Members may view the document (Procedure for Receipt of Income Tax Return Form) at the Institute’s website at http://www.ctim.org.my/cms/news.asp?menuid=14

FORMs B or BE for year 2010

Individuals who have not received their Income Tax Return Forms B or BE for the year 2010 by

15 March 2011 should contact the nearest LHDNM Branch Office for issuance of e-filing PIN for e-filing of these returns. They may also contact the Customer Service Centre of LHDNM at 1-300-88-3010 for assistance.

New taxpayers who are taxable but have not yet registered a tax file may register their tax files online at http://ekl.hasil.gov.my/ or visit the nearest LHDNM Branch Office. A new e-Filing PIN will be issued upon successful registration of the tax file.

Applications for e-filing PIN may be made by email to pin@hasil.gov.my indicating the NRIC number, latest address, telephone number and attach a photocopy of MyKad (front and back).

The last day for application of PIN for Forms BE (applicable to individuals without a business source of income) via email is 20 April 2011. Applications for PIN using a third party’s e-mail address will not be entertained.

Members may view the announcements on the LHDNM’s website at https://spsd.hasil.gov.my/Pki/

New Public Rulings issued on 10 March 2011

Public Ruling 03/2011 --- Investment Holding Company

Public Ruling 04/2011 --- Income from Letting of Real Property

The Inland Revenue Board (IRB) has issued the above Public Rulings on 10 March 2011. Public Ruling 03/2011 is effective from the year of assessment 2006 whilst Public Ruling 04/2011 is effective from the year of assessment 2011. Members are encouraged to review the Public Rulings and forward comments, if any, to the Institute as soon as possible for submission to the IRB. Members may view the Public Rulings at the Institute’s website at: http://www.ctim.org.my/cms/news.asp?menuid=14.

CIRCULAR MF12/2011: MIA ISSUES FRSIC CONSENSUS 15

CIRCULAR MF12/2011: MIA ISSUES FRSIC CONSENSUS 15 ''CLASSIFICATION OF A TERM LOAN THAT CONTAINS A REPAYMENT ON DEMAND CLAUSE BY THE BORROWER''

30 Mar 2011

Circular MF12/2011

ALL MEMBER FIRMS

MIA ISSUES FRSIC CONSENSUS 15 ''CLASSIFICATION OF A TERM LOAN THAT CONTAINS A REPAYMENT ON DEMAND CLAUSE BY THE BORROWER''

The Institute is pleased to inform members that the Council has approved the release of FRSIC Consensus 15 ''Classification of a Term Loan that Contains a Repayment on Demand Clause by the Borrower''.

FRSIC Consensus 15 is issued as part of the Institute’s initiatives to promote best practices in compliance with the highest standards in financial accounting. FRSIC completed the development of the Consensus after considering the responses to the exposure draft, published in January 2011.

About the Consensus

FRSIC Consensus 15 provides guidance to address the current and non-current classification issues faced by a borrower related to a term loan agreement which contains a repayment on demand clause. Considering the legal opinions obtained as well as the case laws established in Malaysia, FRSIC concluded that the repayment on demand clause in term loan agreements governed by and construed in accordance with the laws of Malaysia would not affect the borrower’s ability to defer settlement of a liability for at least twelve months after the reporting period. As such, the borrower should determine the classification of the liability associated with such term loan in its statement of financial position in accordance with other terms and conditions as stated in the term loan agreement.

Please be guided accordingly.

Issuance of individual and partnership income tax return forms for the year of assessment 2010

The Inland Revenue Board (IRB) has informed that the income tax return forms have been issued in batches since January 2011 to individuals and partnerships who have not done e-filing before. Partnerships and individuals who do not receive these return forms by 31 March 2011 can obtain a copy of the forms from the relevant Assessment Branch. Members may view the IRB’s letter dated 17 March 2011 on the Institute’s website at http://www.ctim.org.my/cms/news.asp?menuid=14.

ETP ROADMAP

Malaysia's Economic Transformation Programme (ETP) roadmap is a comprehensive effort by the Performance Management & Delivery Unit (PEMANDU) under the Prime Minister's Department that will transform Malaysia into a high-income nation by 2020.

Although it was announced back in October 2010, many people are keen to know what it is really about, why is it so crucial to Malaysia, and how it will benefit Malaysia as a whole, as well as every Malaysian.

For more info, log on to http://www.pemandu.gov.my/

Income Tax Credit

On 30 December 2010, the IRB issued a guideline GPHDN 2/2010 to defind the term for income tax credit and the procedure on utilisation of income tax credit as set-off.

http://www.hasil.gov.my/pdf/pdfam/GPHDN2_2010ENG.pdf