funny that in my case it takes like forever to receive my refunds. i submitted my e-filing on 20-4-09.

plus, i have yet to receive my refund for the previous year as well, already made a complain to BPA in december last year, the officers followed up for a couple of months and then disappeared without further news of their investigation.

anyone have any ideas on how i can follow up?

Best to visit the LHDN branch where your file is located. Talk to the CS agent. They are quite helpful

my wife having same problem...i dunno if it got anything to do or not but this is her first refund so i figure her data is updated very slowly in LHDN (first case).. i suggested her to write in to LHDN just to show that she is concerned about the money...hehehe...

haha, as i know it has penalty for cheque bounce ? which party will be fined ?

Penalty on LHDN side.. the problematic 800 cheques have been stop by LHDN

Hi All,

Reading this helped clear some of my doubts. Still got a few questions hopefully some can help with, thanks yeh.

If an employee makes 2500 a month/ 30000 annually, the net salary is 2500 - EPF(11%) = RM2212 ... roughly. There are no PCB cuts. I'd like to know, what is the limit to which income tax is chargable?
Is it when annual salary > 30k? or when net salary ( 30k - EPF) is > RM30k?

And I've seen in the LHDN websites as well as here, an employee is entitled to this Personal Relief of RM8k. Does this mean to say for example:
An employee is paying RM400-500 a month for tax thru PCB. This amounts to RM 4800 - RM 6000 a year. With the RM8k personal relief thing, does it mean the employee can claim back the total amount paid thru PCB?

Tax planning for business assets

This is the last instalment of the 3-part series by the ACCA on tax filing for sole proprietorship

SOLE proprietors can optimise their taxes by taking capital allowances on business assets into account.

Fixed assets: Fixed assets acquired for use in the business are eligible for tax relief in the form of capital allowance. Capital allowances are deducted from the adjusted income of a business to arrive at statutory income. Depreciation on fixed assets is not tax deductible.

Newly acquired assets will be given an initial allowance of 20% and annual allowance of 10%, 14%, 20% or 40%, depending on the asset category.

The capital allowance amount is computed on a straight-line basis by reference to the cost. Full capital allowance is given even though it is acquired and in use for less than a year (see table 1).

The cost of the asset includes alteration costs and incidental costs for the installation of fixed assets.

For example, Clear Vision operates an eye treatment clinic in a shopping mall. It acquired a central air-conditioning plant on Jan 1, 2008 for RM32,000 and an additional RM8,000 was incurred for altering the existing building to install the air-conditioner.

The capital allowance computation for different years of assessment (YA) is shown in table 2.

Small-Value Assets: With effect from YA 2006, where the sole proprietor acquires fixed assets (small- value assets) which are not valued at more than RM1,000 for each asset, the full cost of the asset enjoys capital allowance in a year (100% cost = capital allowance).

The maximum capital allowance allowed for small-value assets in a year is restricted to RM10,000.

To optimise tax planning, the acquisition of fixed assets like printers, telephone systems, fans, calculators and kettles should be staggered to reduce taxable income.

Capital allowance is given on a year’s basis even if it is acquired and in use for less than a year. Sole proprietor may consider accelerating the acquisition of small-value assets in November/December 2008 instead of January 2009 as capital allowance is available in YA 2008 to reduce taxable income.

For example, Hun & Co is an auditing firm in Kuala Lumpur. During the year ended Dec 31, 2008, it acquired two printers for its staff at RM900 each and two electric kettles at RM150 each.

The company is entitled to an accelerated capital allowance of 100% on small-value assets of RM2,100.

Motor vehicles: Motor vehicles used in business are entitled to capital allowances.

The qualifying cost eligible for capital allowance is restricted to RM100,000 provided:

·it is a newly acquired car; and

·the cost does not exceed RM150,000.

Other motor vehicles which do not satisfy the above two conditions will be given qualifying cost of RM50,000 even if the actual cost may have exceeded RM50,000.

For example, Loong acquired a second-hand BMW under hire-purchase on Oct 1, 2008 (see table 3).

The amount of capital allowance for YA 2008 will be as in table 4 and 5.

Since the BMW is second-hand, it is only entitled to a qualifying cost of RM50,000. For hire-purchase, the new instalment is given initial allowance; accumulated cost is given annual allowance. The hire-purchase interest of RM540 per month is tax deductible.

Capital allowance can be claimed on the full cost of commercial vehicles, which are motor vehicles used directly to transport trading stock, such as lorries and vans.

Other motor vehicles used in the business are known as passenger vehicles, which are restricted to a maximum cost of RM100,000. These are used in business to meet customers, bankers or suppliers. To maximise claims on passenger vehicles up to RM100,000, the sole proprietor has to ensure the cost of the new motor vehicle does not exceed RM150,000.

Personal fixed assets: Sole proprietors may transfer personal assets for use in their business. Once such assets are used in the business, capital allowance is then available.

The sole proprietor has to first establish the market value of the assets at the time they were brought into use in the business. The assets will then be recorded in the balance sheet of the business.

Annual allowance is given on the market value of these assets, but no initial allowance is allowed.

For example, Seng decides to trade in second-hand books in the flea market at the Curve, PJ. He uses his mobile phone, personal laptop, and table and chairs in the initial set-up of the business on Sept 1, 2008. The market value of those assets at Sept 1, 2008 is as in table 6.

In the event that the sole proprietor continues using the assets for personal use, the portion of such personal usage must be excluded and no capital allowance is available on that portion.

For example, Seng has identified 40% as his private usage. The capital allowance available for business deduction on his personal assets used in business is therefore:

60% x RM2,668 = RM1,601

http://biz.thestar.com.my/news/story.asp?f...14&sec=business

I received 2 letters which were "Cukai pendapatan notis taksiran tambahan tahun taksiran 2006" and "Cukai pendapatan notis taksiran tambahan tahun taksiran 2007".

For the first letter, i need to pay a bit more.

For the second letter,their calculation is wrong because i didn't included the EPF deduction .

For both cases above,i need to pay first then claim refund later,right ?

I will write the necessary letter to LHDN later.

Hi all, need advise here...

i received a letter from LHDN saying this:

- LHDNM perlu buat semakan lanjut ke atas pengiraan cukai Tahun Taksiran 2008......pihak tuan akan dihubungi sekiranya maklumat tambahan diperlukan.

- Nyatakan jenis penyakit yang dihadapi oleh diri sendiri atau nak dalam 2008...kemukakan resit perbelanjaan...

is that means i got picked for audit? what should i do next? i'm not positive whether i can find the receipts (total of RM300)...

they need a receipt to ensure those expenses did occured
do u still remember which clinic or hospital u went to? u can ask them to print a copy receipt

I thought the rule of the thumb is, if no receipt, do not try your luck by putting into deductions.

Receipt lost/misplaced/don't have/don't know is not acceptable by LHDN audit. They will take out the amount and re-calculate the taxable amount. Worse, they fine you for wrong/falso submission. The small fine RM50 maybe 10x more than the amount deducted.

Government already paid back RM3.1B and I have not gotten my overpaid taxes. For the last few years I got my money back early. Went IRB yesterday to find out status and system showed my forms have yet to be process! So the officer at the counter print out a red memo to the officer incharge of my case to expedite my case.

Yah, no receipt better don't try luck. The fine is like 1.65 if I not mistaken.

annual salary, not net salary, annual salary of 25k ++ should start to submit already ... for me, my advice is once start working after graduate(not after form 5 and work as part time), should start submit already no matter how much your paid.

for the 8k, is not deducted like this, else LHDN gonna close down ...

it is minus from the total annual income like that, not from monthly pcb ...

So I went overseas and worked about 6 yrs ago and I did not inform the IRB to close my income tax file due to ignorance. Now that I'm ready to make some property investment here I'm kinda worried about all unwanted attention I might attract frm IRB since I've not paid any form of tax for the past 6 years. I know better to buy a property with cash, but if i were to take up a housing loan will it be wiser to put it under my name or my sibling's name.

Thanks.

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Added on July 7, 2009, 8:21 pm---

ooopss... I mean TAX

This post has been edited by red_stilletto: Jul 7 2009, 08:21 PM

If you can show prove that you worked overseas for the last 6 years and have saved enough money legally, why would IRB kacau you ?

Also, if you work in countries which does not have double-taxation rules (e.g. SG), then you can bring in your money legally, caused you already paid taxes in that country.

i've just received my refund from IRB last week, but the numbers are a little short from the refund in my e-filing by a few ringgit. anyone else experiencing this? a few ringgit doesn't seem a lot, and to be honest i am a bit tired with the taxation after having some hard time dealing with them, should i ignore this or write in a letter for formality's sake?

Just leave it... if there's extra, next year will refund again

Perhaps there are some deductions you made wrongly or not accepted by LHDN. They corrected it and come up with the new figure.

i'm not so sure about it, since they totally ignored my 2007 refund and only refunded me 2008's. another reason for me to write in a formal complaint to chase back 2007's refund?

actually, there was a mistake and IRB already sent a letter to request that i send in the balance which i have yet to pay. but the numbers still don't tally and the shortage is those few ringgits.