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Income Tax Issues
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Nepo
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 Feb 28 2011, 03:14 PM
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QUOTE(kc182 @ Feb 28 2011, 02:22 PM) hi guys... need some advise. my tax is deducted automatically by my company. so usually when i get my ea form i just fill in as stated in my ea form.. but at the end of 2010 i have some side income from online. not much about 1-2k. is it very important that i fill it in as well or can i just let it slide as its not really big amount. the money was transfered into my bank account from paypal. If the amount is not huge like 1 to 2K, then u can take the risk by not declare them. If subsequent they discover u side income, penalty is also not big. |
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Nepo
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Mar 2 2011, 10:19 AM
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QUOTE(miQbals @ Mar 2 2011, 09:41 AM) Hi, This my first time register as taxpayer due to allowance increase include in my paycheck/salary. Previously, my company only pay may allowance using check. Just have a PCB starting last month but I'm increasing my Zakat's contribution more to overcome it. 1. My question is I have registered a company under my name which is like part time job for supplying & servicing computer/electronic equipments. This business is not really active, as I'm getting busier nowadays the registered profit might less than RM1k. Shall I use BE or B form for registering my tax ? TQ in advance. Use Borong B, thus u tax file no will be: OG xxxxxxxxx. Borong B has columns to fill in capital allowance if i m not mistaken.
Added on March 2, 2011, 10:20 amQUOTE(kc182 @ Feb 28 2011, 04:11 PM) ahh ic... thanks... yea i think so too. no point they want to come find small fish to fry... may i know what is the penalty if they find out?? they will js ask to pay the tax for my 2k??
Added on March 2, 2011, 10:24 amQUOTE(500Kmission @ Feb 28 2011, 06:44 PM) based on my exp, 1st u will receive 10% penalty notice. if u dont settle the penalty 5% penalty. that is all. 10% + 5% is late penalty payment. Additional penalty of 45%-70% for non-disclosure, thus if the side income is not much u can simply ignore to declare This post has been edited by Nepo: Mar 2 2011, 10:26 AM |
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Nepo
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Mar 3 2011, 08:45 AM
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QUOTE(dcon @ Mar 2 2011, 07:50 PM) Hi, My wife monthly salary is about RM2k, I know that she is not entitled for tax, thus she has never open a file with LHDN, we had married for 5 years and she has not declare her income tax before and so far I only declare tax for myself. I just aware that if join account, spouce is entitle for RM3k deduction. Can I declare my tax this year and also combine my wife income so that i can entitled 3k deduction? If I want to have combine declaration, does my wife require to open a file with LHDN? Thanks Put in simplest way, u wife income should not exceed RM3000.00 (to be contra with wife relief RM 3000.00) for joint assessment to be worthwhile to u. |
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Nepo
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Mar 3 2011, 11:18 AM
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Profit = Loan interest ? IMPO it is the same since it is of same nature, only with the wording is difference as in islamic loan. Hovewer, for reliability purposes, it is better to seek clarification from the nearest IRB branch to avoid any confusion in future (would be best if u can get a written black & white) . BTW the Islamic insurance also use the word profit instead of dividend/bouns which i saw somewhere in lowyatnet mentioned by other forumers
Added on March 3, 2011, 11:19 amQUOTE(zeese @ Mar 3 2011, 10:58 AM) Hi Guys, I hope I can get clarification here. I'm entitled to deduct my housing loan interest.. or "Faedah Pinjaman Perumahan" (because I signed the S&P within that stated period and fulfill all other conditions). However, since I'm using islamic loan, there's no such term as loan interest. In my annual statement, it states as principal paid and profit charged. So, is profit charged = housing loan interest? Tq |
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Nepo
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Mar 7 2011, 09:22 AM
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QUOTE(Pan84 @ Mar 7 2011, 02:06 AM) Guys. I would like to ask some question regarding income tax. While we are working, of course we will be tax for our income if over 24K annually. We got the EPF, SOCSO etc..., even we invest our money to earn more money will be tax. But outside of this world got a person who is don't have permanent works, EPF, SOCSO etc..., but able earn money over 24K annually from stock market. Should he be tax for his income? If so, which category he falls in, B or BE? For personal tax, it is considered as capital gain. So it is not taxable. |
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Nepo
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Mar 7 2011, 04:13 PM
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QUOTE(nemo2 @ Mar 7 2011, 11:13 AM) Agree but have to bear in mind that IRB can actually tax you on the basis that it is not capital when the investment becomes a trading in nature...
Added on March 7, 2011, 4:14 pmQUOTE(Pan84 @ Mar 7 2011, 01:05 PM) Which mean he don't need to pay or register for income tax? Yes, first of all u need to determine whether it is investment nature or trading nature(speculation) If it is investment nature, i.e hold for investment (usually hold over one year), then he don't have to pay tax or register for income tax. But he need to maintain the records for 7+ years in case IRB come for field audit. But, if it is trading nature, ie. frequently buy and sell for speculation, then he has to pay for tax and register for income tax. Thus, this poses to difficulty for individual who frequently buy and sell in shares to determine whether it is investment nature or trading nature. My advise is if the amount is not big u can just simply ignore. RM24K IMHPO is considered as small amount provided it is not occurred every year. This post has been edited by Nepo: Mar 7 2011, 04:25 PM |
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Nepo
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Mar 8 2011, 08:24 AM
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[quote=Pan84,Mar 7 2011, 06:59 PM]Understood. If the person on trading nature of investment then he need to declare his income for income tax, which category should falls in? B or BE? [/quote] Borong B is for business nature.
Borong BE is for salary employee.
Thus, Borong B is more appropriate in this case.Just for discussion purpose, if the investment in market shares is of trading in nature, we would be liable to tax when there is income. What if for certain shares, we are in loss position. Do you think we can offset the loss with the gain? [/quote] [ Hold share for investment
It is presume that its' investment would be for long term. As such, the gain from realisation of such investment would be capital gain and not subject to income tax. In the same vein, loss on realisation of investment would not be deductible. The presumption is not bullet proof. In the event the frequency of disposal is too high, the tax authorities can deem to be trading nature.
Buy and sell share of trading nature
Usually it is hold for short term. It is taxable. In the same year of assessment, the profit counters and losses counters can be offsetting. If the outcome is net profit, then it is term as chargeable income and subject to tax. However, after offsetting, it occurred net losses, then the net losses is allowed to carried forward and utilized in the following years . This mean that it become business nature.
In practise, if the profit is not too unbelievable, u can just simply ignore. Unless u salary income is e.g RM 30,000 per annum but income of share is RM one million in the particular year and u go to buy a house worth RM one million, then u will get into trouble...This post has been edited by Nepo: Mar 8 2011, 08:55 AM |
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Nepo
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Mar 9 2011, 08:34 AM
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[quote=Pan84,Mar 8 2011, 01:06 PM] [ Hold share for investment
It is presume that its' investment would be for long term. As such, the gain from realisation of such investment would be capital gain and not subject to income tax. In the same vein, loss on realisation of investment would not be deductible. The presumption is not bullet proof. In the event the frequency of disposal is too high, the tax authorities can deem to be trading nature.
Buy and sell share of trading nature
Usually it is hold for short term. It is taxable. In the same year of assessment, the profit counters and losses counters can be offsetting. If the outcome is net profit, then it is term as chargeable income and subject to tax. However, after offsetting, it occurred net losses, then the net losses is allowed to carried forward and utilized in the following years . This mean that it become business nature.
In practise, if the profit is not too unbelievable, u can just simply ignore. Unless u salary income is e.g RM 30,000 per annum but income of share is RM one million in the particular year and u go to buy a house worth RM one million, then u will get into trouble... [/quote] In the other words, just declare it if over RM30K annually. [/quote] If u are not going to declare the share trading profit in u tax return, then this money is illegal. U can't use this money to buy any car, property or asset that have to be registered with Gov Authority as it is not legal. So, if u are going to buy a property let say, a house or a car, u have to make sure that u normal income, i.e you salary, remuneration, etc cumulating over these few years deduct all the necessary expense and have the surplus to have the ability to purchase the house (without the help of black money). If u can't explained properly how the fund derived to purchase the house, then u will get into trouble....hope u can get what I mean. This post has been edited by Nepo: Mar 9 2011, 08:35 AM |
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Nepo
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Mar 10 2011, 09:29 AM
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QUOTE(nemo2 @ Mar 9 2011, 05:55 PM) This is for personal reliefs ... you may find useful information in the explanatory notes as well. This is extracted from MIA Budget Commentary & Tax Information. Mind telling if u are qualified accountant? |
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Nepo
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Mar 11 2011, 11:59 AM
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Offences, Fines and Penalties http://www.hasil.org.my/goindex.php?kump=5...it=7000&sequ=11This post has been edited by Nepo: Mar 11 2011, 12:01 PM |
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Nepo
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Apr 13 2011, 08:44 AM
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QUOTE(ronnie @ Apr 13 2011, 08:36 AM) Bad advice.... if everyone will do like you say, then everyone can practically claim all the tax relief possible, right ? My take on the sports equipment : it must be an item from the sports in which if you remove it, it no longer becomes that sports. Eg. Shuttlecocks: without it how to play badminton ? Racquets: without it how to play badminton/tennis/squash/.... ? BUT without shoes, can you still run the marathon ? BUT without swimming suit, can you still swim ? - The answer is YES, thus you cannot claim these items Please don't just simply assumed for any tax law. Since it is written in black and white and without backed by further note or explanation, it is not deductible item in respect to sport shoe. Just my 2 cents. |
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Nepo
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Apr 19 2011, 08:03 AM
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Hi,
I m new in e-filing, now I m using e-filing for my tax. After compute, it seem that I need to pay tax on my income. So, I pay my tax via Public bank using PBB-IRB bank-in-slip together with CP 501. My question is do I need to send a copy of bank-in-slip to IRB to prove the payment via courier/mail since I had submited my Borong BE via internet.
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Nepo
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Apr 28 2011, 04:13 PM
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Hi, I m new to e-filing, I can't find wife relief in e-BE. Anyone please enlighten ?
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Nepo
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May 12 2011, 08:31 AM
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QUOTE(coca^cola @ May 5 2011, 06:02 PM) Do we have to declare our dividend from reits? Thank you  -DELETED- This post has been edited by Nepo: May 12 2011, 09:12 AM |
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Nepo
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May 20 2011, 02:54 PM
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Added on May 20, 2011, 2:54 pmQUOTE(cute_boboi @ May 20 2011, 11:13 AM) Possible. If only it is approved charity that falls under the guideline of income tax (Approved Institutions or Organisations). If you donate stuff worth XXXX to approved-charity, then you may ask them to write you a receipt for it (but must have something like Income Tax Exempted under Section 44(6) of Income Tax Act 1967 Ref: JHDN 01/35/42/51/179-x.xxxx Govt. Gazette No: xxxx ) The receipt cannot be simply buy from Popular bookshop type receipt, unless it is chopped by the charity with income tax approval reference) In theory, it is possible. But, in practice it is difficult. Will Receipt Issue Clerk quantify for the goods u purchase to monetary term? For example, a King brand Matress - one shop sells for RM 2000 whereas another shop sells for RM 2200.... Moreover, it may let to immoral issues...e.g. stolen goods/things for donation... For donation of drawing by artists to government are qualify for tax deduction (if I m not mistaken). But, it also let to the problem of valuation to monetary term.  This post has been edited by Nepo: May 20 2011, 03:05 PM |
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Nepo
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May 20 2011, 03:32 PM
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QUOTE(cute_boboi @ May 20 2011, 03:07 PM) When you buy the thing, you will have the receipt. Pass to them. If it is your own company stuff, ask your accounts dept to issue DO + Invoice (or pro-forma) Also, it all depends on the charity/organisation IF they willing to issue receipt to you. After all, the person who donate, is for charity, not to dilly-dally for all other stuff (like the receipt). If the person who ask this question, the priority is for the receipt rather than donation, then might as well choose any other charity that is already on the income tax approved list, simple. Mind share the success chance for the issuance of receipt in this case.  |
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Nepo
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May 23 2011, 08:53 AM
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QUOTE(cute_boboi @ May 20 2011, 03:57 PM) It's subjective, depending on the individual and the organisation, the people or network you know, whether they willing to help or not, to provide you the receipt. Or you may want to ask first before donating, tell them frankly you want the receipt for tax purpose. Also, you must ask/check if the organisation is under the approved list or not. Otherwise, they give you Popular-receipt, you can't use it for tax claim purpose also.  Really not convincing for the one highlighted. Rules and regulations are written in black and white. A receipt which can be issue means it can be issued. A receipt which cannot be issued mean it cannot be issued. The rules and regulations must be followed. It is quite straight forward. Not the case like Mr. A can claim but Mr. B cannot claim who donate to the same charity organisation. If it is the case, then we will seem a lot of court cases sueing each other like no tomorrow!  This post has been edited by Nepo: May 23 2011, 11:47 AM |
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Nepo
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May 23 2011, 02:51 PM
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QUOTE(cute_boboi @ May 20 2011, 03:57 PM) It's subjective, depending on the individual and the organisation, the people or network you know, whether they willing to help or not, to provide you the receipt. Or you may want to ask first before donating, tell them frankly you want the receipt for tax purpose. Also, you must ask/check if the organisation is under the approved list or not. Otherwise, they give you Popular-receipt, you can't use it for tax claim purpose also.
Added on May 23, 2011, 2:52 pmQUOTE(cute_boboi @ May 23 2011, 02:41 PM) Simple. You donate to Charity A. The person issue normal Popular-receipt, with no mention of e.g. "Income Tax Exempted under Section 44(6) of Income Tax Act 1967 Ref: JHDN 01/35/42/51/179-x.xxxx Govt. Gazette No: xxxx" You cannot use it for tax deduction. I donate to Charity A. The person issue same normal Popular-receipt, but remember to chop it with their rubber-stamp on "Income Tax Exempted under Section 44(6) of Income Tax Act 1967 Ref: JHDN 01/35/42/51/179-x.xxxx Govt. Gazette No: xxxx" I can use it for tax deduction. When audited by tax department, your receipt is not valid for tax deduction, unless you go back and get the chop/stamp. This is assuming Charity A is under LHDN approved list. u answer is not relevant to the one highlighted above. This post has been edited by Nepo: May 23 2011, 02:55 PM |
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Nepo
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May 24 2011, 11:37 AM
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In giving advise regarding to tax matters, we should giving advice sincerely with professional advise and best to be support by tax laws. If don't know just keep silence. Otherwise, those who taking your advise will be misled . U will not suffer any loss but the one who listen will be suffered. Tax law is a serious topic. Donation come first but relief is a plus point, otherwise u would not be here in this thread.  Donation = money to charity Relief = claim from goverment (is your money) One stone two birds, why not ! unless u are not human! This post has been edited by Nepo: May 24 2011, 03:10 PM |
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