For the first time in the nation’s history, the government introduced the Special Voluntary Disclosure Programme (SVDP) to entice taxpayers to approach the Inland Revenue Board (IRB) on past income that they have not reported, or understated within an 8-month disclosure period from November 2, 2018 to June 30, 2019.
Effectively, this means that the government will allow tax payers to clear their tax records and start a fresh for year of assessment 2018. IRB has received over 200,000 valid disclosures as at February 28, 2019.
The first deadline of March 31, 2019 has lapsed. With the June 30, 2019 and September 30, 2019 deadline looming, it is important to review the effectiveness of the SVDP, and other similar tax amnesty offerings in other tax jurisdictions, if implemented correctly.
How effective are tax amnesty or tax voluntary disclosure programmes?
A recent successful tax amnesty programme was undertaken by Indonesia in 2016. Under this programme, Indonesian taxpayers could report their undeclared assets and fully settle their tax obligations for past fiscals years up to December 31, 2015. The programme was designed to make it more attractive for the taxpayer to repatriate his/her funds back into Indonesia.
When tax amnesty programmes are successful, they can bring various short and long-term benefits including an immediate infusion of revenue which can be utilised to reduce debt or support fiscal programmes, expanding the tax base and increasing local investments through asset repatriation. Click here to know more >>>
To ensure you benefit from the Special Voluntary Disclosure Program (SVDP) to the fullest, Crowe Malaysia is equipped with an experienced team of professionals to guide and work with you on the program that had been extended to 30 September 2019.
Should you require further advice and assistance, talk to our tax expert Foo Meng Huei at email@example.com.
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