IRB Urg­ing More Peo­ple To Use Free e-Fil­ing Ser­vice


It was reported in The Star newspapers yesterday that the Inland Revenue Board (IRB) is urging more people to use the free e-Filing service to file their income tax returns.

Despite the ‘Big-Brother-is-watching’ fears that many have, doing e-Filing of returns has several advantages over the conventional manual filing of tax returns. I’ll list some of them here:

  1. For those who are tardy in remembering deadlines (or love doing things at the last minute), e-Filing offers a further grace period of 15 days from its official deadline to file your tax returns. This means that if were to file your returns manually, the deadline for submission for an individual who doesn’t carry on a business is 30th April, while it’s 15th May for the same individual submitting his return via e-Filing. For one carrying on a business, the deadline is 15th July compared to the manual filing of 30th June.
  2. An additional bit of good news for users of the e-Filing system is that in the event that a tax return (even with the extended deadline) is submitted late, the rate of penalty stipulated by IRB can be reduced by 5% if the relevant tax return is submitted via e-Filing.
  3. In the event a taxpayer is entitled to a tax refund (as in the case of most employees), the tax refund would be processed faster (ie. you’ll get your refund earlier) compared to those doing filing manually.
  4. Most importantly, the e-Filing system is automated and takes care of the additions and calculations by itself and limits the reliefs that a taxpayer is entitled to according to the reliefs’ treshhold. This means that the taxpayer will avoid unnecessary computational mistakes which if not, will result in unnecessary penalties! 

The IRB’s official tax filing programme for 2013 has been commented on by me in my earlier post.

The full article from ‘The Star’ is reproduced below:

IRB urg­ing more peo­ple to use free e-Fil­ing ser­vice 

The Star Malaysia
2 April, 2013


PETALING JAYA: The In­land Rev­enue Board (IRB) is urg­ing more peo­ple to use the e-Fil­ing elec­tronic sys­tem to file in their in­come tax.

Its pub­lic re­la­tions of­fi­cer Mas­run Maslim said Malaysians should use the IRB’s free e-Fil­ing ser­vice as it is easy to use, saves time and pre­serves the en­vi­ron­ment by us­ing less pa­per.

“This year, we are tar­get­ing about three mil­lion forms to be sub­mit­ted by tax pay­ers us­ing e-Fil­ing,” he said in a tele­phone in­ter­view.

Mas­run also said that if there were open re­quests by cor­po­ra­tions for IRB to do road­shows at com­pany premises, it could be con­sid­ered.

How­ever, com­pa­nies would need to have at least 200 to 250 staff mem­bers to use the ser­vice to make the trip worth­while, he said.

He re­minded tax pay­ers who are sub­mit­ting hard copy forms to send in their in­come tax forms be­fore April 30 while those sub­mit­ting on­line could do it by May 15.

Asked if any date ex­ten­sion would be given in view of the com­ing gen­eral elec­tion, Mas­run said that the dates would re­main the same but IRB would make an an­nounce­ment if there were any need for change

For fur­ther en­quiries, please call 1-800-88-5436 or use the cus­tomer feed­back form on http://www.hasil.gov.my/smp/.

To read the article in its original form, please visit the following link:

http://thestar.com.my/news/story.asp?file=/2013/4/2/nation/12914894&sec=nation

About Richard

Richard Oon Hock Chye has more than 25 years of experience in taxation and business advice, with particular expertise in Malaysian property law. He began his taxation career with Deloitte Touche Tohmatsu, a ‛Big Four’ accounting firm, before starting his own practice, ConsulNet Tax Services Sdn. Bhd., in 1996. He is currently the National Tax Director of TY Teoh International, one of the leading consulting service providers in Malaysia. It is a member of the MSI Global Alliance, a global network of more than 250 independent legal and accounting firms, in over 100 countries. Richard sits on the board of two companies listed on the Main Board of Bursa Malaysia, as an independent non-executive director. He is also a regular contributor to several magazines and publications, and has shared his tax expertise on numerous occasions with organisations and property developers. As well as being a member of the Malaysian Institute of Accountants (MIA), Richard is a fellow member of both the Association of Chartered Certified Accountants (ACCA) and the Chartered Tax Institute of Malaysia (CTIM). He is a Certified Financial Planner (CFP) and holds a tax agent licence issued by the Ministry of Finance. Richard is also the author of the book, ‘Every Property Investor’s Guide To How To Pay Less Tax Legally’.

2 thoughts on “IRB Urg­ing More Peo­ple To Use Free e-Fil­ing Ser­vice

  1. Hello Richard,

    I have a question about unit trust’s “dividend”. Normally, I just filled in the HK3 form when submitting in paper. Two years ago, I starting using e-filing and as usual filled in the HK3 form online as it computes all the dividends automatically (gross dividend/income and deducted tax).

    However, when I went to IRB to validate the dividend vouchers or receipt the last round, i am told that for unit trust (under trustees), I should use HK 6 instead – a paper copy was given as a sample (but the required information is not as per HK 3 nor the receipt/ voucher).

    To-date, I still cannot find the HK 6 in e-filing so … I just filled in as usual in the HK 3 that was available. If so, will I have to submit HK 6 in paper? That will defeat the purpose of e-filing.

    Can you clarify why HK 6 is not in e-filing and I believe there are other forms that need to be filled accordingly but are not in e-filing.

    Thanks for your quick feedback.

    Regards,

    Greg

    • Hi Greg,

      Yes, the HK-6 worksheet is unfortunately, not one of the forms available electronically on the e-filing system. I also do not understand the IRB’s rationale for not making this worksheet available electronically.

      For a sample of the HK-6, you may look at the BE 2012 guidebook as it is available there http://www.hasil.gov.my/pdf/pdfam/BE2012_Guidebook_2.pdf. The worksheets do not have to be submitted to the IRB, except only when asked to do so, especially in a case of an audit or processing of a tax refund.

      The worksheets are meant to aid the taxpayer in tabulating his income sources and to ease the IRB’s verification process. If you have created your own HK-6 equivalent using a spreadsheet, that will suffice as well. Yes, unfortunately, you would still have to submit it in paper-form.

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