Deadline for income tax submission

Useful information regarding filing of income tax from a friend in my community in Section 4 of Bandar Sungai Long.
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the deadline for submission of Form BE 2007 (non-business) to IRB is
Wednesdy 30-Apr 08 (5 days from now). deadline for Form BE 2007
(business) is 30 June 08 - still plenty time to play with.

Penalties rules for late submission are as follows:

1. Failure to notify chargeability ( Subsection 77(2) or 77(3) )

10% of the total tax payable subject to a minimum of RM 300 and a
maximum of RM 5,000.

2. (a) Late submission of Return Form (Subsection 77(1) and 77(1A))
(b) Taxpayer's wife fail to declare her source of income after
making a declaration in the Return Form.

Rate of Penalty Under Subsection 112(3)

A. Employment Case (SG) (except directors of control company)

Offences Rates on tax payable:
First 2%, min. RM50, max. RM100
Second 5%, min RM100, max RM200
Third 10%, min RM150, max RM300
Fourth 10%, min RM200, max RM500
Fifth 10%, min RM250, max RM750
Sixth 15%, min RM300, max RM1,000
Seventh 15%, min RM350, max RM1,500
Eighth 15%, min RM400, max RM2,000
Ninth 15%, min RM450, max RM2,500
Tenth and Above 20%, min RM500, RM3,000


B. Non-employment case (including directors of a control company)

Offences Rates on tax payable:
First 5% min 200, max 2,000
Second 10% min 300 max 3,000
Third 10% min 500 max 5,000
Fourth 15% min 600 max 6,000
Fifth 15% min 800 max 8,000
Sixth 15% min 1,000 max 10,000
Seventh 20% min 1,200 max 12,000
Eighth 20% min 1,500 max 15,000
Ninth 20% min 1,800 max 18,000
Tenth 20% min 2,000 max 20,000

3. (a) Late submission of Return Form after 2 years when the case is
being audited or investigated.
(b) Fraud, omissions and understatements.

- Rate of penalty under Subsection 113(2)

- Duration Rate
Voluntary declaration (before the case being taken up for audit or
investigation) < 1 year 15%
1 year - < 3 year 20%
3 year - above 30%

Voluntary declaration (after taxpayer being informed but before the
commencement of audit) - 35%

-- For repeated case.

Rate of penalty:

60% of tax payable plus 10% for every repeated offence but the total
penalties increased are subject to a maximum of 100%.

For Investigation cases :

Rate of penalty : -

A. For offences involving omissions from or understatements in the
Return Form not supported by accounts due to negligence. 60%

B. For offences involving omissions from or understatements in the
Return Form supported by accounts due to wilful default. 75%

C. For fraud offences which involve understatements either in the
Return Form or accounts of a deliberate nature. 100%

D. Deliberate and persistent understatements. Tidak kurang dari 100%

4. Failure to comply with Notice.

Rate of compound

Offences Compound Payment
First - RM 200 ke RM 300
Second - RM 300 ke RM 500
Third - RM 500 ke RM 700
Fourth - RM 700 ke RM 1,000
Fifth and above - Minimum RM 800 dan maximum RM 2,000


5. Failure by companies to submit estimate according to subsections
107C(2), 107C(3) and 107C(4)(a).

Rate of compound

Estimate of Tax Payable Compound Payment
RM 500 and less RM 300
RM 501 to RM 1,000,000 RM 500
More than RM 1,000,001 RM 1,000

source: http://www.hasil.gov.my/english/eng_NO4_6.asp