Experts hail establishment of Collection Information Agency

The establishment of the Collection Intelligence Arrangement under the Ministry of Finance, which will see the Inland Revenue Board, Royal Malaysian Customs Department and Companies Commission Malaysia sharing information, is expected to decrease potential tax evasion by companies.

Tax leaders have hailed the move, saying that it is in line with the digitalisation age, encourages companies to be more transparent and be more compliance-oriented.

Source: The Edge Markets, 21 October 2016

EY: Good call on reduced tax rates and collection arrangement

EY Malaysia’s Tax Leader said that the proposed scaled reduction in tax rates for companies on their incremental income for YAs 2017 and 2018 as it will help companies to deal with the global economic challenges and also stimulate domestic investments. He also said that if the Collection Intelligence Arrangement is implemented well, it should result in better tax enforcement and revenue collection.

Source: Bernama, 22 October 2016

PwC: Broader corporate tax cuts more effective, less tedious

According to PwC Malaysia’s Tax Leader, the tiered step-down system announced in the Budget 2017, which sees small and medium enterprises receive up to a 4% tax rate cut, may be less effective than broadbased corporate tax rates cut and is also more administratively difficult to monitor and implement.

Source: Malay Mail Online, 22 October 2016

Youth and Sports Ministry seeks possibility of widening lifestyle tax relief scope

The Youth and Sports Ministry will discuss with the Ministry of Finance on the possibility of widening the scope of the lifestyle tax relief to include other memberships, such as futsal.

Source: Malay Mail Online, 23 October 2016