Under Malaysia’s Income Tax Act 1967, taxpayers who wilfully evaded tax will be charged with tax evasion offences, carrying severe penalties and the possibility of imprisonment. The medical professionals are no exception. The Inland Revenue Board of Malaysia (IRB) currently has identified the medical profession as the alleged prime target for tax evasion activities.
The recent Inland Revenue Board of Malaysia (IRB) audit has caused concern not only with the medical doctors, it involves also the private hospital as well as professionals such as auditors and tax agents. Does it mean no more Sdn Bhd or what?
The year 2016 saw the revamp of the business practice of medical profession. There are news spreading that the Inland Revenue Board of Malaysia (IRB) has issued a letter to the Malaysian Medical Association (MMA) sometime this month giving directions to advise medical doctors to file their taxes under sole proprietorship.
Lately, the medical doctors are bewildered by the issue of whether the use of Sdn Bhd as a business vehicle is legitimate for the purpose of income tax declaration.