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kmlim
05-08-2008, 02:20 PM
I just got a letter from LHDN to do audit on my income tax, individual. Everything ok except that I've put the amount for "Perubatan Ibu Bapa" to RM4000 when the actual should be RM3380.
What will be the penalty or can I appeal to them?

chewie
05-08-2008, 02:22 PM
do you have any other receipt that can support your claim of RM4000?

If not, just go there and apologize to them. Be truthful to them.

geordie
05-08-2008, 02:29 PM
For which assessment year is that ? Am just wondering how far back they will go for audit purpose.

chanelt
05-08-2008, 02:44 PM
It may be too late now!!

OK, you have few options :

1. Support the RM4,000 by official bills / documents - No penalty
2. Voluntary disclose (after inform of audit but before commencement of audit) - 35% of tax undercharged
3. Let them discover during the audit - let them decide the penalty - lower 45% (for 1st offence) to 100% of tax undercharged or tax payable (300%)

But, you can belanja them makan makan, minum minum.. easier to settle & they are quite lazy also... haha

But, I am sure they was attracted by some other major errors in your tax computation, instead of this leh... :D (my opinion only yah)

kmlim
05-08-2008, 03:29 PM
But, I am sure they was attracted by some other major errors in your tax computation, instead of this leh... :D (my opinion only yah)
Yes, you are correct, actually they detected that I did not submit my 2005 borang BE, but my income was not much at that time!

masmot
05-08-2008, 06:02 PM
for individual tax, they usually send you a letter first. for the item that they want to investigate, they usually ask you to present the proof of payment. if u cannot supply them with that, or if they are not statisfied, then only they will assign officer to actually go to your place and do the audit.

i think this must be for assesment year 2004 onwards, the STS system.

sometimes it quite funny after this STS system, when one i encountered taxpayer who actually claim for OKU children.from all this year, suddenly he got one OKU child, so just do the checking, i called and asked what type of disability his children suffered. He said his son is not working, and lazy, what he knows only to eat and asked for money. that's why this particular taxpayer claimed that this particular son as an OKU..:)

btw,I agreed with chanelt.

Ex-IRB officer

kwchang
05-08-2008, 06:27 PM
...But, you can belanja them makan makan, minum minum.. easier to settle & they are quite lazy also...
I do not think this is a wise move to make. That would be an insult to a serious LHDN officer. I am surprised that masmot agreed with your statement :eek: , she being an ex-LHDN officer herself

mlkok
05-08-2008, 06:33 PM
No need to panic. Worst case, they'll just fine you on the difference.
It would not be a good idea to volunteer information, though. Gives them more ammo to find fault with you. Just give them what they ask for.

chanelt
05-08-2008, 07:40 PM
I do not think this is a wise move to make. That would be an insult to a serious LHDN officer. I am surprised that masmot agreed with your statement :eek: , she being an ex-LHDN officer herself


Hahaha... you believe it or not, it is truth.... hahaha....

chanelt
05-08-2008, 07:43 PM
No need to panic. Worst case, they'll just fine you on the difference.
It would not be a good idea to volunteer information, though. Gives them more ammo to find fault with you. Just give them what they ask for.


:rolleyes: Where you got this new IRB ruling that they only claim the difference??? :rolleyes: hahaha............ :D

chanelt
05-08-2008, 07:51 PM
Majority of IRB auditors are local Uni fresh graduates, they just attended simple training before they were appointed as auditors to check tax payers' files. Their knowledge... i can say is very very very limited (like audit juniors) ... they got all the opinons, points, arguements from their Seniors .... hence, get a tax or finance expert to talk to them, I am sure they will spin in front of you... Hahaha .... :D

BTW, forgot to ask kmlim, yours is Borang BE or B?

joker2107
05-08-2008, 08:41 PM
I am surprised that masmot agreed with your statement :eek: , she being an ex-LHDN officer herself
or is that why she agreed ;) :eek: :eek: :eek:

masmot
06-08-2008, 02:32 PM
I do not think this is a wise move to make. That would be an insult to a serious LHDN officer. I am surprised that masmot agreed with your statement :eek: , she being an ex-LHDN officer herself


i have to defend myself and LHDN here. i didn't notice the 'makan thing' statement made by chanelt, maybe my fast reading accidentally skipped this part. what i've agreed for is the options laid out by chanelt, no.1-3, and not other than that.

tq kwchang, now only i realized this part. i've never been posted in an audit department longer than 6 months as i'm mostly in collection, recovery and once been head of the legal unit (they say i've the face of tukang kutip hutang, :)). what i can say is never ever try to do any type of bribing or belanja makan thing. :). I dont know about other officers but i speak for myself and i believe for majority of LHDN officers.

i dont know if you've ever done this before chanelt. :rolleyes:

p/s: erm..if Dato hasmah read this, she must be proud of me.. :D

masmot
06-08-2008, 02:38 PM
Majority of IRB auditors are local Uni fresh graduates, they just attended simple training before they were appointed as auditors to check tax payers' files. Their knowledge... i can say is very very very limited (like audit juniors) ...

Ha, this part, in someway i agreed with you. but the audit team will be in pairs, at least one of them is far more experienced. no junior-junior team . and before they go for audit, they have specific training (not a very simple one la), usually they'll follow and observe other experienced officer for quite sometimes before they do on their own (with partner of course). and sometimes, certain audit officer (even they are new), are little bit outstanding than the other new officers. Sometimes own initiative, social skill and brains might help in this area.