Deputy Finance Minister II Mohd Shahar Abdullah said the changes were based on the adoption of the 2021 budget, which included people’s well-being and new tax collection mechanisms without the need to introduce new taxes. – Bernama picture
KUALA LUMPUR, Dec. 16 – The Treasury Department said today that several changes to the Income Tax Act proposed in the second reading of the Finance Act 2020 should not “save” anyone from paying outstanding tax debts to the Inland Revenue Board (IRB). as the assessed tax must still be paid regardless of whether or not she has appealed against it.
In the second reading of the 2020 Finance Act, which included amendments to the 1967 Income Tax Act, Jelutong DAP MP RSN Rayer questioned whether these amendments were being proposed to give an advantage to several MPs currently on trial.
“I want an explanation. For example, Pekan is currently facing tax arrears of RM 1.6 billion with the Inland Revenue of Board (IRB).
“Why (the changes) are proposed now? Is this an advantage for the administration of his (court) case? “Rayer said in Dewan Rakyat regarding Pekan MP Datuk Seri Najib Razak.
In July, the High Court issued a summary judgment in favor of the IRB, allowing it to collect tax arrears of RM 1.69 billion from Najib.
Najib then appealed the summary judgment and has not yet made any payments.
In response to Rayer, Deputy Finance Minister II Mohd Shahar Abdullah said that the perception Rayer was trying to portray should confuse people as to what the government was about to carry out.
“The changes are based on the adoption of the 2021 budget, which addressed people’s well-being and new tax collection mechanisms without the need to introduce new taxes.
“What is said to save several people is wrong. It was taken out of context, ”he said.
Shahar said earlier that Malaysia has a concept of doing justice to taxpayers and those who want to question their assessments.
“It will not be fair if the latter are given a longer period to pay before their lawsuit is settled,” he said.
Rayer then hit back on Shahar, claiming that there were fears of a compromise between MPs from Pagoh and Pekan who would rely on Najib before begging the government to force Najib to repay the tax arrears.
Prime Minister Tan Sri Muhyiddin Yassin is a Pagoh MP.
To which Shahar replied that anyone who owes taxes to the government must pay their dues, with Rayer interrupting him by suggesting the possibility of a compromise between Muhyiddin and Najib in exchange for political support.
“Will Pagoh compromise with Pekan on this matter, or just to get his support, will we just ignore him without having to repay him?” Rayer asked before Shahar resumed his answers to other questions without answering.
On June 25th last year, the government filed a lawsuit against the Pekan MP through the IRB, demanding that he pay unpaid taxes of RM 1.69 billion for the period between 2011 and 2017 with interest of 5 percent per year payable from the date of the judgment, as well as expenses and other facilities the court deems appropriate.