Audit division identifies RM16.35bil larger tax assortment

KUALA LUMPUR: The outcomes of an organization audit carried out by the Nationwide Audit Division present that there’s a rise in taxes and penalties amounting to RM16.35bil that may be collected by the Inland Income Board (LHDN).

The audit division additionally stated the board’s tax audit goal had been achieved as there have been no audit findings indicating an elevated degree of compliance by taxpayers.

“Nonetheless, there are weaknesses within the decision of firm tax audit circumstances the place circumstances are resolved past the stipulated interval in addition to circumstances in arrears of between six months to 6 years.

“This might end in a delay in issuing further evaluation notices and can end in deferred tax to the federal government,” it stated within the Auditor-Basic’s Report 2020 Sequence 1 launched yesterday.

Other than that, there may be non-compliance in setting passwords as stipulated within the newest ICT Safety Coverage (DKICT) in addition to community and system safety degree evaluation just isn’t carried out for 3 techniques, specifically the corporate’s self-assessment system, danger evaluation system and case administration system.

General, the report concludes that the administration of the board’s tax audit actions has been applied effectively and successfully as the company key efficiency indicators (KPIs) and department KPIs have achieved the set targets and have a backlog of 10%.

The report additionally beneficial that LHDN take fast motion to resolve the excellent circumstances discovered on the branches and continually monitor the circumstances directed to the branches in order that there is no such thing as a extended case backlog.It additionally must assessment audit work procedures and high quality requirements in addition to set up a mechanism to resolve excellent circumstances so that every case may be resolved inside an inexpensive interval.

“The Finance Ministry wants to check the coverage and authorized provisions associated to the sharing of taxpayer data between LHDN and third events to assist pace up the decision of firm tax audit circumstances.

“Additionally it is essential to make sure that features of inside management on password administration and community administration management are applied to all functions in income transformation initiatives underneath the income integration tax system undertaking set out within the DKICT,” it stated. — Bernama


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