Frequently Asked Qquestions about Special Program for Voluntary Disclosure (6) Penalty Rates



1. A company which is not taxable in the year of assessment 2017 would like to make an adjustment on the capital allowance claim and business loss absorption in the year of assessment 2017. The adjustment still results in no imposition of tax for the year of assessment 2017. However, this adjustment will result in additional tax payable for year of assessment 2018.

Is the company eligibile for the penalty rates under the Special Program for Voluntary Disclosure for the year of assessment 2018?


Adjustment for year of assessment 2018 has to be submitted together with the voluntary disclosure for year of assessment 2017.


Penalty will be imposed based on the terms stated in the Special Program for Voluntary Disclosure.


However, if the deadline for submitting the ITRF/ PRF has not expired, the taxpayer has to make an adjustment on the computation of actual tax payable for the year of assessment 2018.


2. Why isn’t there a full waiver of penaltyunder this Special Program?


The penalty imposed is subject to the currentGovernment’s policy.


3. Can oluntary disclosure be made more than once? If yes, what are the penalty rates applicable?


Yes. Taxpayers are allowed to make voluntary disclosure more than once but the penalty rates applicable within this Special Program is based on the voluntary disclosure period as per below:




4. I have made voluntary disclosure via mail within the Special Program for Voluntary Disclosure period. If the voluntary disclosure is received by the IRBM after the end of the period, am I still eligible for the penalty rates under the Special Program for Voluntary Disclosure period?


For taxpayers who have submitted their voluntary disclosure via mail, the date of voluntarydisclosure is the date of receipt by IRBM’s MailingUnit.

Taxpayers are advised to make voluntary disclosures within the stipulated period in order to enjoy the penalty rates offered under the Special Program for Voluntary Disclosure.

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