As the current uncertain economic climate continues both internationally and domestically, companies need to brace themselves for challenging times ahead. External pressures coupled with increasing government debt to GDP ratio means the Malaysian tax authorities will continue to tighten the noose to ensure that companies are complying with their tax obligations. Under such circumstances, it becomes increasingly important for businesses to actively manage and minimise their tax risk.
Tax is a real cost to business. In a way, the government is a “de facto” shareholder of your company as they are entitled to 25% of your profits through taxation. Managing your tax and the associated risks allows your business to undertake transactions at the minimum tax cost or zero tax (through lower tax rates or using tax incentives) as well as to minimise the risk of tax adjustments and penalties.
Managing tax risks is not about avoiding the responsibility to pay taxes, or evading or implementing tax schemes with the intention of avoiding taxes. It is about ensuring that your company’s tax concerns will not affect the business objectives and have no adverse impact on shareholders’ value. READ MORE >>>