Why You Need The Special Program For Voluntary Disclosure (SPVD) ?
Introduction
The tax voluntary disclosure program is a program to encourage the taxpayer voluntary disclose unreported, under reported income tax or unpaid stamp duty to the government. In fact, this program is to declare the income under the principle of “goods faith”, which the tax authority will not conduct an audit upon the disclosure.
The categories of taxpayer
Those taxpayer who are eligible to report their income base on the following categories :
Category 1 : The taxpayer who are not registered their tax and not file any tax return with tax authority,
Category 2 : The taxpayer who are registered their tax but not file any tax return with tax authority,
Category 3 : The taxpayer who are registered their tax but failed to file their tax return correctly with tax authority,
Category 4 : The taxpayer failed to stamp their instrument after six (6) months from the stamping period.
Therefore, the taxpayer under voluntary disclosure required to take the following actions :
Category 1 : Registered a tax and file the tax return manually or online,
Category 2 : File the tax return manually or online,
Category 3 : Write a letter or email to tax authority
Category 4 : The taxpayer are advised to pay their stamp duty as soon as possible either manually or online stamping.
The year of assessment
The voluntary disclosure can be made on year of assessment 2017 and preceding years of assessment If the year of receiving of the income could not be identify, then the income could be reported in the year of assessment 2017.
If the audit commenced the taxpayer may audit if the voluntary disclosure not in line with the issues under the audit. However, if an audit has yet to commence, the voluntary disclosure will be accepted in good faith.
Penalty rate
The taxpayer choose to disclosure their income under the program, they will enjoyed the lower penalty rate and the taxpayer required to pay the full outstanding tax and penalty within the respective disclosure periods,
Disclosure periods
3/11/2018 – 31/3/2019 - 10%
1/4/2019 – 30/6/2019 - 15%
1/7/2019 onward - 10% - 300%
Conclusion :
The taxpayer should take this opportunity and come forward to disclose their income, in order to enjoy lowest penalty rate and free from audit, especially those who are a high risk taxpayer.
