Well, most of the time you will get away with it.
Government dont really care much if you avoid as a serf
But once your net worth is more then RM5 million or so, then the government will DEFINITELY probe you.
For example, lets say you have a net worth of RM 5 million, the government will use your ammount tax, multiplied by a number (for example lets say u paid RM100,000, and effective tax rate should be 1/6th) , so Rm100,000 x 6 = RM600,000
So then they will deduct all the tax reliefs, lets say total tax relief is RM100,000
So RM700,000.
Then they will look at the difference
RM5 million minus RM700,000 = RM4,300,000
YOU will be sued for RM4,300,000 x 26% (max tax rate) by the tax department, if you cant proof that
1) Your income comes from TAX FREE sources (like ASB), your mum give, your dad give etc.
2) Your expenses comes from TAX DEDUCTABLE sources (like zakat).
If you cant prove it, they will fine you for RM1.3 mill
if no declare income tax, what happen?
Dec 31 2011, 10:43 AM
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