KUALA LUMPUR, 16 March 2018:
The Public Accounts Committee (PAC) has recommended the government increase the tax arrears limit to RM10,000 for individual taxpayers before being prohibited from travelling overseas by the Inland Revenue Board (IRB).
In a statement issued after tabling the PAC Report on the issue in Dewan Rakyat yesterday, PAC chairman Datuk Seri Hasan Ariffin said: “The PAC feels that the tax arrears limit of RM2,000 imposed by the IRB on individuals to restrict them from travelling abroad is not suitable to current economic conditions.”
The PAC also recommended the tax arrears limit for companies be increased to RM50,000.
Hasan added that before the restriction was imposed, the IRB must make sure the notice of tax arrears be sent to the individual or company as practised by the Civil Service Department.
“The IRB delivery system for reminders of the tax arrears limit or restriction on overseas travel must be upgraded using new technologies such as the short messaging system (SMS), Whatsapps, and e-mail.
“The IRB and Immigration Department must ensure that their databases are constantly updated so that there are no instances when the tax payer has paid his taxes but still face difficulty travelling overseas.”
The PAC held a proceedings meeting on the issue on 27 March 2017 after the findings of the Auditor-General’s Report 2015 Series 2 was tabled in Parliament on 21 Nov 2016.
– Bernama