Sole proprietorships most common tax evaders in Penang - IRB

The Penang Inland Revenue Board (IRB) has identified sole proprietorships as the group most commonly committing tax evasion in the state.

Its director Norfaidah Daud said to address the issue, IRB will approach them and provide consultation through the Special Voluntary Disclosure Programme (PKPS) 2.0.

“According to Penang IRB records, sole proprietorships have the highest non-compliance rate and their accounts are not well-maintained compared to other types of businesses.

“We must rectify this situation so that this group pays taxes as prescribed by the regulations.

“That is why we are going to the ground through PKPS 2.0 to provide explanations to them on tax payments,” she said.

She told reporters this after launching the Lawatan Konsultasi Hasil (LKH) 2.0 programme and flagging off the LKH convoy to visit companies and individuals in the state in conjunction with PKPS 2.0 at Menara Hasil in Bukit Mertajam, Penang, yesterday.

Norfaidah said PKPS 2.0 is an initiative to support the sustainability principle in the country’s tax governance in line with the Madani Malaysia concept.

She said the programme allows new and existing taxpayers to increase their tax compliance based on the AES (Awareness, Education, Services) concept practised by IRB while permitting them to voluntarily declare their income and ensure accurate and regular tax calculations.

Norfaidah said the LKH 2.0 initiative which aims to create an IRB presence among industry players and understand business activities and challenges will run until Thursday (Sept 21), adding that the convoy will visit 215 premises statewide.

“It also seeks to provide relevant tax advisory services to taxpayers, facilitate legal action processes, as well as promote the initiative,” she added.

Meanwhile, Norfaidah noted that 958,743 taxpayers were recorded in Penang last year, with a tax collection totalling RM6.8 billion, making it the state to collect the second-highest tax after Sarawak.

“We are targeting an over RM7 billion tax collection this year.

“Last month we contributed 4.78 percent of the country’s total tax collection, and last year we contributed 3.87 per cent of the country’s total tax collection,” she added.

- Bernama

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