The introduction of the self assessment system (“SAS”) from the year of assessment 2001 has effectively shifted the responsibility of computing taxes correctly from the Inland Revenue Board (IRB) to taxpayers. Under the previous official assessment system, the IRB assessed the taxes based on returns filed by taxpayers. Under the SAS, taxpayers’ returns are deemed as tax assessments, and it is the responsibility of the taxpayers to get things right in their returns or otherwise bear the penalties for non-compliance. The objectives of SAS are to increase the level of tax knowledge, improve taxpayers’ compliance with statutory tax obligations and increase the efficiency in collecting tax revenue. With the change, the IRB is able to allocate more of its resources to carry out tax audits to further enforce and improve compliance and also to enhance collection efforts. Are you aware that tax audit activities have steadily increased over the years? In 2009, there were 1,399,660 cases audited by the IRB. In 2010, this number increased by 24% to 1,732,258 cases. One cannot deny that the SAS has placed added responsibilities on the taxpayer. In addition, taxpayers will need to keep themselves updated with the relevant changes in the income tax rules and regulations. Failure to comply with the Income Tax legislation, guidelines and public rulings may expose the taxpayer to additional taxes and penalties. 各路英雄，千万不要跑帐
Posted on: Tue, 25 Jun 2013 07:22:05 +0000
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