Question

1. Businesses have been hit severely in the light of Covid-19 pandemic and the Movement Control Order imposed by the Malaysian Government to curb the spread of the disease. Karim, a business owner of a restaurant in Negeri Sembilan, had to shut down his business as the abrupt decline in his business income could not sustain the business operating expenses. Briefly explain the type of assessment that could be issued to Karim by the Director-General of Inland Revenue Board of Malaysia when he ceased his business, and why this assessment is issued.

                                                                                                                       

Answer 1

Answer:

Income Tax Act 1967 gives that any individual who submitted for an offense will be fined either through punishment or imprisonment or both relying upon seriousness or the quantity of offenses.

The over two circumstance are fundamentally the same as one identifies with ommission of income and another unfair assessment or tax credit availment.

Segment 113(1)(a) of Income Tax Act,1967 gives that an assessee is at risk for punishment/penalty or fine of 1,000 to 10,000 and 200% of expense undercharged. Thus, both the Companies might be dependent upon 200% of tax undercharged.

In second case, Director may confront fine or punishment/penalty of 2,000 to 20,000 or imprisonment or both for giving illegitimate advice/guidance.