Improve Tax Administration and Compliance
To improve tax administration and compliance, the focus is to reduce tax gap.
| Direct Tax |
| Widen Field Audit & Investigation Coverage |
- Focus on high impact tax areas (Transfer pricing & specialised industries)
- Re-engineering of desk audit process
- Focused audit
- Widening investigation coverage
- Estimated revenue RM2,857 million
|
| Widening the Tax Base |
- Identify /Register new taxpayers and minimize under declaration
- Compel government agencies to provide information
- Strengthening LHDN Tracking Function
- Estimated revenue RM163 million
|
| Improving Efficiency in Tax Submission & Tax Collection |
- Prompt collection
- Ease payment of tax
- Segmentation of taxpayers
- Improve efficiency in tax submission
- Estimated revenue RM434 million
|
| Indirect Tax |
| Revise depreciation rate of gazetted value of used cars |
- Targeted for used CBU imported cars – 10%
- e.g. current rate is @ 35% for 1-2 years old car, above market's 20-25%
- Deter forgery of the age of used cars
- Estimated revenue RM439 million
|
| Audit based control on exporters and importers of liquor and cigarette in DFI & FCZ |
- Enhance control of movement, importation and exportation of these products in DFI and FCZ through audit and effective enforcement
- Curb smuggling of these products and avoid revenue loss
- Enhance enforcement
- Estimated revenue RM400 million
|
| Enhance Customs' enforcement |
- Increasing audit coverage from 2% to 7%
- Fill up vacant posts and redeploy officers
- Improve audit mechanism by using risk management
- Capacity building
- Estimated revenue RM250 million
|
Note: Estimated revenue is for 1st 2 years of implementation
2012/01/10