DP Naban, S Saravana Kumar and Ng Kar Ngai of Rosli Dahlan Saravana Partnership discuss a case decided by Malaysia’s High Court where the taxpayer successfully has the bill of demand for sales tax quashed.
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DP Naban, S Saravana Kumar and Amira Rafie of Rosli Dahlan Saravana Partnership explain why taxpayers in Malaysia need to be prepared for a customs audit.
This is the first case of its kind in Malaysia
The High Court in Malaysia allowed the taxpayer’s judicial review application to challenge the decision of customs in rejecting the taxpayer’s application for input tax credit refund (ITC refund).
In 2018, the taxpayer had incorrectly accounted for goods and services tax (GST) to customs in the GST returns filed by them. The taxpayer did not take into account tax invoices for staff labour costs which was incurred in the course of the taxpayer’s business. This resulted in the taxpayer having over accounted for GST by not offsetting the input tax credit against the output tax.
FORMER prime minister Datuk Seri Najib Razak proclaimed publicly in 2013 that tax evasion was tantamount to an act of treason as the payment of taxes was one of the pillars of patriotism. So it was ironic, to say the least, when the government declared that Najib’s family he and his children Datuk Mohd Nizar Najib, Datuk Mohd Nazifuddin Najib and Nooryana Najwa Najib owe Putrajaya a total of RM1.75 billion in income tax arrears from 2011 to 2017.
In all but Nooryana’s case, the Inland Revenue Board (IRB) managed to obtain summary judgments from the respective High Courts for the board to proceed to recover the unpaid taxes.