When the taxpayer came to us, it was in breach of his statutory responsibility under Section 77A(1) of the Income Tax Act 1967 (the Act) for not submitting or filing his tax return for the YA 2020 within the time due to MCO. This was because the taxpayer needed help to finalise their accounts due to movement restrictions.
Because of this, IRBM was legally authorised to issue notice of assessment under Section 90(3) of the Act, [which came to RM1.5 million in this case].
Even though the tax return [Form C] had subsequently been filed by way of e-filing, this does not nullify IRBM's legal power to issue the said notice of assessment under s. 90(3). This is because the taxpayer violated s 90(1) for failing to comply with the wordings "furnished a return in accordance with section... 77A to the Director General..." despite the tax return being submitted.
The problem with this scenario is that the taxpayer stated on their tax return that their total tax due was RM 100,000. Yet, they had already paid CP 204 in the amount of RM300,000. Instead, the taxpayer is eligible to get a tax refund.
However, due to the assessment undertaken under s90(3), the taxpayer is now obligated to make a further payment of RM 1.2 million to LHDN.
Because the taxpayer did not pay this RM1.2 within the stipulated time, the IRBM filed a petition to wind up the company.
This taxpayer engages us to resolve this matter.
After much deliberation, IRBM come to the conclusion that it is in everyone's best interest to withdraw the petition [which is scheduled on January 3, 2023] to wind up the company.
I have to give credit to our tax team for all of their hard work!
即使税务报表 [Form C] 随后通过电子申报的方式已经提交了，但这并不意味着 IRBM 根据第 90(3) 条发出上述评估通知的法律权力失效。这是因为纳税人违反了第90(1)条的规定，没有遵守 "按照第77A条的规定，向税收局总监提交税务报表 "的措辞。
在此案件中，纳税人在税务报表上应缴税款总额为100,000令吉。同时，他们也已经支付了总共300,000令吉 的CP 204。有鉴于此，纳税人其实本应该享有退税 [Tax Refund] 的资格。
然而问题是，由于 IRBM 已经根据第90(3)条，发出评估，纳税人现在反而需要再向 IRBM 支付120万马币 [RM1,500,000 - RM300,000]。
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