Outstanding Income Tax Refunds in the past years? Get it back in 2018 – LGE
Tax-paying individuals and companies with outstanding income tax refunds in the past 6 years will be able to offset the amount for the taxes payable in the current year. There’s a whooping total of RM16.046 billion of unrefunded income tax and real property gains tax!
The current MoF (Ministry of Finance) has discovered that the previous government has not refunded RM16.046 billion of excess income tax and real property gains tax. This excess comes from over 1.6 million incidents involving not only individual taxpayers, but also companies, societies, and foundations.
Out of that RM16.046 billion:
- 29% unrefunded over six years. Totals to RM4.593 billion; RM3.09bil from companies and RM1.503bil from individuals, societies, and foundations.
- 38% unrefunded over two to three years. Totals to RM6.125 billion; RM5.212bil from companies and RM913mil from individuals, societies, and foundations.
- 22% unrefunded over four to five years. Totals to RM3.539 billion; RM2.759bil from companies and RM780mil from individuals, societies, and foundations.
- 11% unrefunded the past year. Totals to RM1.789 billion; RM1.356bil from companies and RM433mil from individuals, societies, and foundations.
Lim Guan Eng alleges that the taxes were unrefunded because the previous Cash Management Committee (under the MoF) didn’t allocate enough money to the Tax Refunds Trust Funds. The current fund in the Tax Refunds Trust Funds is at only RM1.486 billion (as of 31st May) – it is RM14.56 billion short of the total unrefunded tax amount.
The current government, however, is allowing taxpayers with the outstanding refunds to make an application to offset their payable taxes this year (2018). LGE further added that “remaining tax refunds will be carried out based on the ability of the government depending on its fiscal position”.
If you have any outstanding tax refunds, it is best that you immediately start applying for the offset! To apply for the reimbursements, applicants with the outstanding taxes can proceed to Lembaga Hasil Dalam Negeri (LHDN) for verification and approvals.
This news is sourced from Free Malaysia Today (FMT).