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Salary to Senior Citizens, IRB disallowed Double deduction claim, CCS Successfully defends

Updated: Dec 24, 2022


In claiming a Double Tax Deduction for remuneration paid to an employee who reaches the age of 60 in the middle of the year, is the remuneration to be prorated to exclude the portion of his remuneration that relates to the period prior to reaching the age of 60?


Few senior citizen employees of our clients reach the age of 60 in 2020.


IRB disallowed our client's claim for a double deduction from the salary of their employees for the months before they turned 60.


Illustration:

Financial Year End: 31.12.2020


Date of Birth of Employee: 1.3.1960


IRB disallowed our client's claim for a double deduction from their employee's salary for January to February 2020 because he hasn't turned 60.


IRB only allowed our client's claim for a double deduction from their employee's salary for March to December.


This incident involved a few employees.


Good news! CCS wins their case, and our client doesn't have to pay a single cent more to the IRB because of the tax audit.


The credit goes to everyone on our team.

支付给60岁的雇员的薪酬,纳税人可以享有双重扣税 (Double Tax Deduction) 的优惠。


然而,倘若有关员工是在课税年 (Assessment Year) 之间才60岁 (例如:在课税年的9月11日才60岁),那么在他还没有达到60岁前的薪水,在计算双重扣税时是否需要被排除?


我们的客户有不少年长的雇员,在2020课税年达到60岁。


然而,这些雇员在达到60岁前的几个月的薪酬,内陆税收局 (IRB) 不允许我们的客户双重扣税。 此项举动,会导致我们的客户必需额外缴付税款 (Addition Tax) 再加上罚款 (Penalty)。

说明一下:


财政年度结束:31.12.2020


雇员的出生日期: 1.3.1960


由于员工需要在2020年3月1日才达到60岁,因此 2020 年1月及2月份的薪水,IRB 不允许我们的客户双重扣税。


IRB 只允许我们的客户支付给员工3月至12月的工资,才享有双重扣税的资格。


这一事件涉及到几个员工,因此影响极大。


好消息! 在于与 IRB 沟通后,CCS 赢了此案子,我们的客户也因此不需要因税务审计而向IRB多付一分钱 [0 Issues/ Findings]。这要归功于我们团队的每个人。


References:

Employment of Senior Citizens, Ex-Convicts, Parolees, Supervised Persons and Ex-Drug Dependants


Double Tax Deduction: Senior Citizen, Ex-Convict, Parolee, Supervised Person and Ex-Drug Dependants



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