KUALA
LUMPUR, Nov 23 (Bernama) -- The Inland Revenue Board's withholding tax
management in the implementation of external and desk auditing does not
fully comply with work procedures, having not issued approval letters on
payment by installments.According to the Third Series of the 2014
Attorney-General's Report, from 2012 to June 2014, no letters were issued
to nine (10.1 percent) of the 89 tax payers involving payments of withholding
tax amounted to RM1.47 million.The report said other pitfalls included the Work
Procedure Manual was not prepared and the norms were not put in place for
reference purposes and to monitor the performance of officers undertaking
external and desk auditing.This resulted in external audit officers spending
between 190 and 2,284 days to resolve 7.03 million cases, while desk audit
officers taking between 34 and 3,617 days to issue Notice of Tax Increase Forms
(CP17A) from the date of tax increase amounted to RM1.77 million in the ledger
system of companies' own self-assessment.In addition, the report highlighted
that the individual detection mechanism on non-residents, who are liable to pay
withholding tax, was not really effective, while awareness of government
agencies on the obligations of paying withholding tax is still low.
-- BERNAMA
