Lim also highlighted that the other part the government will be looking at is the Automatic Exchange of Information (AEOI) whereby people may have parked their assets overseas. “We are looking at RM150 billion as our tax collection, 20 per cent coming from all this shadow economy can be a sizeable sum of tax that the country can collect. On the Malaysian shadow economy, Lim noted that IRB estimates that it encompasses about 20 per cent of the total gross domestic product (GDP). “You will probably see more visits from IRB going out, in the sense that they will be looking for businesses which are never registered and then tighten the net and then capture all these entities as part of widening their basket of taxpayers.” “These are the activities IRB will be tracking. It includes foreigners who are here in Malaysia and using a local person as the entity to operate the business but never report taxes. “Underground economy here covers not just the illegal part of the economy. “How the Inland Revenue Board (IRB) will go about their shortfall is actually looking at ways to enhance their database to be able to track those ‘underground economy’,” Deloitte Tax Services Sdn Bhd director Philip Lim told The Borneo Post yesterday at the Deloitte TaxMax 2019 45th Series Seminar. KUCHING: Tax payers should still continue to do voluntary disclosure even after the Special Voluntary Disclosure Programme (SVDP) has ended, Deloitte advises, particularly since the spotlight now is on Malaysia’s underground economy and shadow economy.ĭeloitte highlighted that majority of the country’s revenue still comes from taxes but post-SVDP and with the shortfall in revenue collected from Sales and Service Tax (SST) compared to Goods and Services Tax (GST), revenue must thus come from corporate tax collection to fill the gap. Tham (third left) poses with (from left) Lim, Deloitte Touche Tohmatsu Tax Services’ Tax director Gan Sin Reei, Deloitte Tax Services’ Indirect Tax director Larry James Sta Maria and Deloitte Tax Services’ director Chai Suk Phin.
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