THE government will not amend the Income Tax Act 1967, which states the administrator or next-of-kin of a deceased taxpayer has to pay the latter’s arrears. 

Deputy Finance Minister Ahmad Maslan said if the act is not enforced on executors and heirs, it is feared the people will not want to pay their taxes. 

“We believe if this (enforcement) is not done, there are parties who will be irresponsible and unmotivated to pay taxes. They will wait to die because then all their debts would not need to be paid and their debts with the IRB (Inland Revenue Board) would be settled.

“The matter is already (included) in the act and the IRB said the amount (tax) charged is the amount of (taxable) income until one’s death. If heirs can pay the arrears, they should do so,” he said after a Raya event hosted by the Writers’ Association of Johor in Pontian today.

On May 11, IRB chief executive officer Mohd Nizom Sairi reportedly said the next-of-kin of deceased taxpayers are fully responsible for the deceased people’s commitments, including income tax management.

Section 74 of the Income Tax Act 1967 states any income tax arrears cannot be written off automatically, even if the person involved is dead.

On Wednesday, Religious Affairs Minister Mohd Na’im Mokhtar reportedly said the National Council for Islamic Religious Affairs will convene soon to reach a consensus deceased taxpayers’ arrears, following a disagreement between Penang Mufti Wan Salim Wan Mohd Noor and Pahang Mufti Abdul Rahman Osman on the matter. – Bernama, May 19, 2023.