PETALING JAYA: The Inland Revenue Board (IRB) today confirmed that the previous government did not return a total of RM16.046 billion in excess income tax and real property gains tax as at May 31, 2018 to taxpayers, mainly due to the shortfall in the Tax Refund Fund (TBBC).
This, it said, involves 1.65 million cases comprising companies, individuals, societies and foundations, with some refunds stretching back to six years.
Based on the latest position of TBBC, the priority of refund will be given to individual taxpayers. As at July 31, 2018, IRB already processed more than 90% of tax refund applications for the individual taxpayer category.
For other taxpayer category, the refunds still cannot be paid as there is no additional allocation for the fund. In line with the government’s wish to prosper the rakyat and in response to Finance Minister Lim Guan Eng’s proposition, IRB will consider allowing taxpayers with tax credit to be refunded by IRB, to be set-off against taxes that need to be paid for the current year. Taxpayers are required to submit the application for set-off to the respective IRB branch that handles their tax files.
For taxpayers who do not apply for their tax credit to be set-off, their refunds will be processed depending on TBBC allocation that is approved by the government and the nation’s financial position.
Taking into account the financial constraints due to the nation’s liabilities of over RM1 trillion, IRB said Lim is working to identify sources of income for the payment of refunds either this year or the next few years.
Source: The Sun Daily