INTRODUCTION

Taxation can define as a mandatory payment but not a fine imposed by the
government on the use of income, wealth or other basics for the benefit of the
people. (Siti Rohani, Anizah & Shukria,N.D, 2009)

Two bodies that responsible to monitor tax system and collect tax from Malaysia
Inland Revenue Board Malaysia (IRBM)- Direct Taxes
Royal Custom Department (CUSTOMS)- Indirect Taxes
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DIRECT TAX AND INDIRECT TAX

Direct tax
i. Income Tax
ii. Corporate Tax
iii. Real Property Gains Tax

Indirect Tax
i. Sales Tax
ii. Service Tax
iii. Excise Duty
iv. Goods and Service Tax(GST)
INLAND REVENUE BOARD MALAYSIA (IRBM)
ADMINISTRATION OF FOLLOWING ACT
Income tax Act 1967
Petroleum Act 1967
Real Property Gain Tax Act
1976
Stamp Act 1949
Labuan Offshore Business
Activity Tax Act 1990.
FUNCTIONS
Act as agent for government
as agreed with government.
Advice government related
to tax.
To participate matters
relating to taxation.
Other functions as in wittern
law.
Act as a collection agent
POWERS
To enter into contract.
To utilize all property of the
board.
To engage in any activity to
promote understanding of
taxation.
To impose fee or charges for
services.
To do anything incidental to
any of its power
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 ASSESSMENT AND COLLECTION BRANCH AND ITS
FUNCTIONS
Assessment:
Assessing income tax forms
issuing assessment notice to taxpayer
reviewing the income tax forms

Functions
Act as agent of the Government and to provide services may be agreed between the Government and the Board
To advise the Government on matters relating to taxation and to liaise with the appropriate Ministries and statutory bodies
on such matters
To participate in or outside Malaysia in respect of matters relating to taxation
To perform such other functions as are conferred on the Board by any other written law
May act as a collection agent for and on behalf of any body for the recovery of loans due for repayment to that body under
any written law

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 AUTHORITY OF DIRECTOR GENERAL
IRBM

Section 90 and 91 give act to Director General (DG) to raise assessment according to the
best of the Director General judgement.

Section 91(3) provides the unlimited time barred assessment for Director General when any
form of fraud or willful default has been committed by or on behalf of any person or any
person that has been negligent in connection with or in relation to tax.

Section 124 Director General also have the power to compound offence and abate or remit
penalties

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 OBJECTIVE OF TAX ADMINISTRATION

To assess and collect the correct amount of revenue as provided under the law in the most effective
manner and at a minimum cost

To educate and create awareness of taxpayers towards their rights and responsibilities under the
provisions of the ITA.

To encourage voluntary compliance with the tax laws and regulations and to ensure that a higher tax
compliance rate is achieved under the Self-Assessment System