Taxmen notified Treasury, MOF of shortfall for tax refunds

Chan Kok Leong Chan Kok Leong Updated 7 years ago · Published on 24 Aug 2018 7:28PM · 5 Comments

The Inland Revenue Board has confirmed that some income tax refunds have been delayed for up to 6 years due to a shortfall of funds in the Tax Refunds Tax Fund, which was clearly conveyed to the previous administration including to former Treasury secretary-general Mohd Irwan Serigar Abdullah (pic). – The Malaysian Insight file pic, August 24, 2018.

INCOME tax refunds were delayed up to six years because of insufficient funds in the Tax Refunds Tax Fund (TRTF), a situation that was clearly conveyed to the previous government, revealed the Inland Revenue Board (IRB) director-general Sabin Samitah today.

During a monthly meeting, the IRB informed former Treasury secretary-general Mohd Irwan Serigar Abdullah of the shortage and requested additional allocations for the tax refunds, Sabin said in a statement today.

“IRB had informed him of the amount to be refunded to taxpayers and requested for additional allocation to be transferred to the TRTF.

“IRB had also written official to the Ministry of Finance (MOF) about the matter.”

However, Sabin did not disclose exactly when the request was made and whether MOF complied with IRB’s request.

“IRB confirms Finance Minister Lim Guan Eng’s statement that there was a shortage of funds in the TRTF,” he said.

On Wednesday, Lim dropped a bombshell when he revealed that the government had owed some RM16 billion worth of refunds to taxpayers.

The refunds, dating as far back as six years, were owed to companies (RM12.41 billion) and individual taxpayers (RM3.62 billion).

According to the IRB, RM4.6 billion of arrears date back to six years, RM3.5 billion (4-5 years), RM6.1 billion (2-3 years) and RM1.79 billion for one year.

“Based on the limited funds in the TRTF, IRB prioritised refunds back to individual taxpayers. “Until 31 July, IRB has processed refunds for 90% of the individual taxpayers,” Sabin said in the statement.

He said IRB will consider applications to “set-off” the refunds against taxes payable for the current financial year.

“Taxpayers will have to make these applications at the IRB offices where their files are being kept.”

For those who don’t apply for the “set-off”, the refunds will depend on the availability of funds in TRTF, he said. – August 24, 2018.

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Comments

  • The bloody IRD should be lynched- from the CEO to the Board. Wh? Because they are the first to go after companies and individuals for tax payments, and now when it comes to excess payments to be refunded, they are silent and pass the buck to the MOF!
    I dont understand this - people/employees pay taxes via monthly deductions via PCB. Deductions paid to IRB are usually in excess. In other words, IRB collects the full monthly PCB. So when the employee files the returns before the 30 April the followIng year, and realises excess payment was made and a refund from IRB is due, how is that IRB doesnt have these funds anymore and has requested the MOF for additional funds to pay to the employees/people? What happened to the money that was initially collected from the individual tax payer? Where did that money go to? Who did the money go to? The IRD CEO should answer this..

    Posted 7 years ago by Thiruchelvam Thirunavukarasu · Reply

  • Corruptions and thiefs are everywhere under BN government. Soooo cruel these people are! Not just the taxpayers money was being misused and siphoned off for personal gains and BN use, now it was revealed that even the taxpayers excess payment also being siphoned off. Haiyaa! So sad, so frustrated! What a cruel government BN was. Lets put all BN people into graves and their existence becomes history - black history - to our young generations!

    Posted 7 years ago by Leng Kapri As Saribasi · Reply

  • Continuous BN rule with excesses eventually failed the people!..

    Posted 7 years ago by MELVILLE JAYATHISSA · Reply

  • Gotta catch all the crooks

    Posted 7 years ago by Jahat sangat · Reply

  • Wow, tax has not been refunded since 2012! Thank goodness there is a changed in Government otherwise BN/MOF will continue to steal unabated. Make sure the MOF/Irwan Serigar/Najib pay Big Time

    Posted 7 years ago by Cheng Seong Yew · Reply