Wanna bet?

I think I should be a bookie. Take bets for the likelihood the polar extremities our economic policies tend to take could be heading… say, in a few months time.

North pole: We are toast (read: in recession) and the government scraps GST. The odds? Reports here, here and here that there’s a second stimulus package in the works. So, one would assume introducing a consumption tax into the current climate would warrant a stay in the psych ward.

South pole: We swim in the opposite direction of world trends and introduce GST anyway because Be-End has got nothing more to lose and might as well squeeze the Rakyat for all they’re worth. The odds?  Well, from February until mid March, the Forestry, Financial Services, Property Development, Government, Travel etc industries will be attending public consultations with the Tax Review Panel and Royal Customs Department on GST… tentatively at stop press, I should qualify.

But then, this is Malaysia. And one of our national dishes happens to be rojak. So, what do you think the outcome’s gonna be?

The rear seat belt syndrome

I can’t think of a better name for it…

The laws are finally out (a week after its effective date).

But instructions on the application of the law aren’t.

Essentially the regulations and rules that give some sense to how we should, if we should stuff the fourth fella into that back seat implement the law as it applies to us. Those are not out. And no one knows when they’ll be out. No one knows the nature of the rules, if they ever come out. No one knows if the law and the rules will clash when if they do come out. No one knows if the darn rules will even be practical enough for the taxpayer to apply. 

Remember those tax rules that are supposed to govern those subprime looking securities ABS? Yeah. Beats the hell out of me too.

If you made a mistake, don’t tell…

That’s what the law is advocating. Okay, I think I mentioned this one before (can’t remember which post though), but they decided to just ram it through cause the man’s leaving in March make it law anyway.

There is a new section introduced in the gazetted Finance Act 2009 that provides for “Amendment of return”. It basically says that now, under the law (as opposed to previously, I suppose, was illegal to have done so), one can make amendments to his tax returns (hold the “Huh?!”)… but only if the amendment is to increase his tax payable (No, wait. Not yet).

Plus, the law allows for the amendment to happen within one year from when one submitted his original tax returns (no big revelation there).

Of course there’s a penalty, stupid! There’s an increase to that tax, by the way. Of 15.5%, after one sat down with a calculator and worked out the B + [(A + B) x 5%] mumbo jumbo. Yeah. That supposed, “Ooo… its so much better if you amended your returns, cause unlike before, now there’s no penalty. Only a token increase… an itsy bitsy one”. Par-leeze!

And because we’re in Malaysia, we need a little bit of nonsense to inject our tax law with a bit of… well, Malaysia Boleh-ness. (No. The up there isn’t really the full nonsense yet.)

The part of the IRB’s website telling us how they impose penalties on offences state that if one made a voluntary declaration (before a case has been taken up for audit or investigation) within a year from the submission of the original tax returns, one would be penalised by 15%.

Given that, would anyone of rational state of mind, want to amend their tax returns?

Oops! Sorry. You can “WTF?!” now.

It’s gazetted? Where?! Where?!

Was doing the usual scanning of the comatosed websites for any signs of resuscitation of our Budget 2009. As they have been for the past two weeks, I saw no changes.

Then, I received a mail from one of the Big 4’s. In its monthly newsletter, specifically for the month of January, the words popped out like the underbelly of a Malaysian politician -

“… Finance Act 2009 defines…”

It’s out?! Since when? Where’s the freakin’ cyberspace copy of it?! Where?! Where?!

Okay, calmly picked up the phone and called the firm that issued the newsletter

Firm staff: Hello?

Me: Eh! Finance Act chut liau ah? (in Hokkien: Hey! Is the Finance Act out already?)

Firm staff: Chut liau (It’s out)

Me: Ho wa cilei copy, eh sai boh? (Let me have a copy, can or not?)

Firm staff: Eh sai… eeong loo eh company eh email ah? (Of course. Via your company’s email?)

Me: (Duh!) Okay, thanks.

So… I wait. On second thought, I have a feeling my company’s overzealous firewall might quarantine the mail for being oversized. Damn it! Gotta call again. Later.

Update @ 5.30pm: Got it! Gazetted on 8 January. This has got to be the slowest parliament to world wide web journey an important document has ever taken. Jamming up the printers now…

A little change took place

A certain Dato’ K (no, not the one most people tend to associate with a popular local artist) is supposed to have stepped down as a member of the Tax Review Panel and be replaced by a certain Dato’ A, who was formerly the head of the Tax Analysis Division of the MOF. Now, Dato’ A, assuming her position as successor of Dato’ K was a virtual certainty, had quit her position at the Tax Analysis Division by year end. Problem was, at the last minute, Dato’ K decided she (yeah, she) wanted to see through the review of the national tax system before she calls it quits…. which leaves Dato’ A, well, unemployed.

No worries. In keeping with the traditions of “outgoing” bigshots in Malaysia, Dato’ A is appointed “advisor” of the Tax Analysis Division until further notice and the Tax Review Panel’s lifespan is extended for another unknown period of time. Everybody lives happily ever after… even the old tax system. Pending review. In the last… I forget how long.

Our Finance Minister is so busy in Kuala Terengganu he forgot the Finance Bill needs gazetting

Over a week into 2009… we wait.

Five Days Into 2009

MOF website: Nothing.

IRB website: Zilch.

MIT website: Nadda.

Hmmmm…. there’s a theme here, I can just feel it.