Per diem allowance exempted

Or maybe I’m exaggerating. Or dreamt it up. Or maybe my poor abused mind has finally popped on the notion that meal allowances relating to meal expenses aren’t exempted when they proposed an exemption on meal allowances.

Anyway, Halijah Bulat announced at the Malaysian Tax Conference 2009 (which is the localised version of the National Tax Conference) that MOF has agreed to exempt “day allowance”. A few squints, blinks and one creative thought later, one should deduce that she meant per diems that employees usually get when they go overseas, because she spoke about trips overseas.

Be wary though. Can’t find anything in writing about this yet.

I’ve only been away a week!

To a country with a maximum tax rate of 16.5%. And look what’s happened!

But let’s see what the real law looks like before we pop the champagne corks, shall we?

And we’re off!

We’re lighter by a shade. No harm done, I suppose.

At least he reset the bar…

The title of this post was supposed to be “I am impressed”. But then, it occured to me that in other countries, comprehensive information and details pertaining to Budgets are made public within 24 hours of the announcements anyway. So, for it to happen in Malaysia is merely meeting the expectations of a properly run Ministry of Finance, wouldn’t you say so?

Granted, one draft law is out – the one pertaining to the deferment of the banks having to tax their mortgage interest income when it refers to late payments by retrenched individuals (and I suspect any new laws for banks will come out at speed of light as long as the man’s in power and his brother runs a financial group).

The amazing part for this Malaysian tax practitioner (because I have never experienced this level of speed in getting information from the authorities… NEVER…) is that a whole “Garis Panduan Bajet Mini 2009″ has been issued! I got it two days after the Mini Budget announcement and granted that its seriously mini in size and scope, but for the IRB to have the details from the MOF and and to have produced 28 pages of details on a guideline dated 10 March, 2009, I am still recovering from the culture shock this morning.

That and the fact that the whole guideline’s in Malay. Not exactly my linguistic forte for speed reading, know what I mean?

You gotta admire his shamelessness

This is a short article, but for those whom have been following it (amongst many battles we’re witnessing throughout our beloved nation), you’d have read it. Just for kicks, here’s an extracted quote from the fella, justifying his non-declaration of the car and driver (amongst many other benefits) he received from (who are we kidding here?) his company -

“If I paid tax on the car, it would mean a double payment to the IRB because PNSB was also paying tax on it.”

I think I’ll just go and revise my tax returns in the last decade or so (till March 8, 2008) to reflect that reasoning and get some refund from the IRB. Wanna join me?

Here’s also something I wish our journalists could cover: Under such blatant tax evasion cases, let us count the ways our internal revenue could be increased to aid the poor during such economic turmoil -

Penalty for…

• Failure to notify chargeability – RM5,000
• For offences involving ommissions from or understatements in the Return Form not supported by accounts due to negligence – 60% of tax payable (+ 10% for every repeated offence)
• For offences involving ommissions from or understatements in the Return Form not supported by accounts due to wilful default - 75% of tax payable (+ 10% for every repeated offence)
• For fraud offences which involve understatements either in the Return Form or accounts of a deliberate nature – 100% of tax payable
• Deliberate and persistent understatements - Not less than 100% of tax payable

Now let’s throw in some that PNSB can contribute to our nation’s bailout plans…

• Failure to comply with the rules on tax deduction for employees – RM1,000 per offence (now, count the number of months per year for each year the company has existed, multiply that by the number of employees and/ or Khir Toyo and gang of benefit recipients to have a gauge)

Not enough? Try transfer pricing adjustments (cough! Mecca land deal cough!), tax auditors. Come on! These are low hanging fruits for your picking!

A rumour

… that the Thin Cap rule is on the verge of postponement or being canned.

Do they ever consult each other?

The news today is Baffling. Okay, news in this country has always been baffling. But this one gives the word a capital B.

First, they announced that there’s gonna be a toll rate increase come this Sunday. And then, get this… the PM objects… to a decision made “two or three weeks ago”!!

Now, the Baffling part. The PM then said that whilst the toll rate increase decision was made less than a month ago… “however the situation has now changed, and the economy has not become better as yet.” 

What the hell is he talking about?! What’s changed?! Okay, nevermind. The other point, which has now been overshadowed, of course, is that a member of his own cabinet goes through the trouble of announcing something which he then takes to the media to denounce. There’s also another, buried between the lines, bit of question to this Baffling stimulus-killing fiasco - Where’s the “this means the Government has been paying compensation for 14 months” money coming from? No. No prizes.

Since everything else has been postponed, why not?

‘Tis a mini Budget, says the Finance Minister.

For Crying Out Loud!

Okay, firstly, some people got to know about this a little earlier than most. Some got to know about it just because they’re nosy KPCs who happened to have friends who worked in organisations that have been briefed earlier. 

So, how should the “most” of us react to our line of work being given the honour of gracing the front page news?

The deadline makes the assumption (yet again) that there are more than 3 productive work days till 1 January 2009. And that large companies with loads of systems and swarms of employees can just flick a switch to comply with the new requirement automatically come the new year.

Thanks for cutting out my work for me next year.

Screw it. I’m still going on leave. See y’all next year.

Been away… and will be away some more

Not because I’m actually using any of my leave as breaks a.k.a holidays, more that there’s a bug in the house. Sick little terrible two isn’t exactly something you can leave at home under any circumstances.

In any case, its approximately two weeks till the end of the year. So, a little reminder to all tax payers – that’ll give ya’ll two weekends to go do the necessary spending/ accumulating/ hustling for/ gathering/ collating/ begging/ borrowing and/or stealing the documentary evidence for all those tax deductions you’ll need for the taxable year 2008.

So, here’s your list of twelve things for Christmas you wouldn’t want to put off till the new year:-

1. Buy books (or talk to your local MPH store manager about borrowing some extra receipts for 6 years.)
2. Buy a computer (if you haven’t already in the last 3 years.)
3. Make a new year resolution to lose weight and go buy yourself a sporting equipment worth exactly RM300 (like a rowing oar… and then go to Putrajaya and whack whoever came up with that idea over the head with it.)
4. Pay for your parents’ visit to the doctor’s (insist on private. Because as far as tax deduction goes, socialist medical care doesn’t get you much.)
5. Pay your professional qualification subscriptions (if your employer reimburses you based on your receipts, ask the Association for two.)
6. If you’re pregnant and due early January next year, talk to your gynecologist about the stars’ alignment with the tax deduction you could squeeze outta an early Sagittarius baby. 
7. Donate to causes that issue you with a tax exemption receipt.
8. Pay zakat (if possible)
9. If you’re a frequent international traveller (I am freaking jealous), go check your passport’s days in and out of Malaysia and make sure you’re spending more days in Malaysia than you’re out. If you need an extra two weeks to make that happen, stay put and defer your travel plans to next year. Trust me. It ain’t just my envy talkin’.
10. Buy health insurance. 
11. Sell that house by the hill slope.
12. … and a partridge in a pear tree.