Today I received a letter from LHDN titled 'Pemberithuan memulakan pendakwaan' saying need to pay compound because failed to 'mengemukakan Borang E'.

My company is sole proprietor and file Borang B every year. Not hiring anyone. Anyone encounter that before? It says must paid within 30 days. However, I don know the amount etc. Feeling lost.

ma go damansra perdana ask him detail lolzzz.z..
i oso dont know many things...
dont know ma go ask for

what is Borang E?

Borang E is employers responsibility.

It needs to file a return every year before end of March.

Read below.

The LHDNM (Inland Revenue Board of Malaysia) reminded employers that the due date for submitting Form E (Remuneration for the year 2012) is 31 March 2013.

Failure in submitting the form is an offence and action may be taken under Paragraph 120(1)(b), Income Tax Act 1967 and upon conviction, offenders may be liable to a fine of RM 200.00 to RM 2,000.00 or imprisonment (not more than 6 month) or both.

Wah, sound serious, but I'm not hiring anyone still have to file? so what can i do now?

just go to irb and tell the officer that you don't have any staff, then return the borang e. very simple only. maybe can avoid the compound

You yourself is an employee. Did you pay STD aka PCB?

It's better to write a cover letter stating the ground before heading to IRB.

Normally E form is for a company.

No. So far I have not paying myself single cent. I have other oversea income.

This post has been edited by blockblevel11: Aug 7 2013, 07:54 PM

http://www.kpmg.com.my/kpmg/publications/t.../a0053s0083.htm

Ok, oversea income isn't derived from Malaysia so it's not taxable.

For the E form, maybe you have registered an E account before. No. Majikan. Did you?

If you don't, they won't simply create an E number for you. There is one sheet of form need to be filled and signed when registration.

If you registered, then you must file a return.

Look at the letter ref number, is there any Exxxxxxx number?

Ok. Somehow, I have the number. I logged into the LHDN Borong E site. I filled them in with no employee.. All empty. Is that ok? And submitted online. Think going to print all the pdfs and attached to the letter and maybe write a letter to say sorry. Go on monday...

Appeal lo, in ur case maybe fine RM200 or close case.

It is ok to fill an empty return , but the due date was 31/3/13. Must on or before.

Don't write sorry. If you are proven you are right, write it with humble, saying you are going to update their records.

"Saya dengan ini ingin mengemaskini rekod tuan bahawa ....."

If say sorry it's proven you wrong in the first place.

I see. Great thanks a lot ck23. Too bad long holiday till monday.

Got friend this problem also. Wonder how u solve it?

This post has been edited by netmatrix: Nov 25 2014, 02:41 AM

So last Thursday, we went to lhdn to check this failure to ful borang E problem. You know what, lhdn is scamming money with this. It is actually a law that they made to exploit for their own benefit.

So we found out that friend company failed to send back E file which is employee file. And every year that you fail to send it back automatically x2 the amount of compound.

1st year Rm100. 2nd year Rm200, 3rd year Rm400 and so forth. And my friend company failed to submit for 8 years. 5 years they will issue lawyer letter for the offence and you cannot negotiate the amount. So 5 years compound is Rm3200. Then the cycle will start again from Rm 100 for 6th year and x2 for 7th year so forth.

My friend was compound Rm3600 for 8 years. And the Lhdn guy did not budge on the payment at all! He even has the cheek to tell me they handle this case all too frequently!

Whats worse is those who are self employed are encouraged to open an employee file for taxation. But they were told not necessary to submit if you do not have employee. But they never told that it is complusory to file because there is a file number in their system! So accounts ppl will get trapped!

So a message to everyone with a business that have a E file in Lhdn, fill up the form and submit. Else get compound for nothing but a trap by Lhdn. My friend burn Rm 3600 for that!!!!!

its not a trap... it's a penalty for those errant like your friend. so he prefer to pay RM3600 or stay in jail few years?


like those common saying last time... Salary less than RMxxxx no need do income tax. WRONG.. as long as there are deduction you MUST do income tax, else they will back track up to 7 years. I also was one that affected by that thinking.. LHDN says back, "who said so?"

Problem is, his accounting is done by another person hot him. And every document was handed over to the accounts guy including B and E. But the form is returned to my friend because say its all computerized. That was back in 04. He kept getting E file and the accounts fella says not need to submit back because he does not have staff at all. End up getting a lawyer letter for that. The compound is super ridiculous price. Power of 2 every year. 5 years RM3200. Not negotiable because of court letter. No matter how much we nego to cut the amount, the Lhdn fella say wanna nego, go to court. Even then have to pay. And have lawyer fees also. Dammit!! Nowhere to run.

So now the the problem is should my friend claim the compound fees from the accounting guy or what? He thought of splitting it 50/50 just to be fair. But i was thinking more like all of it.

May I now how was the status of ur submission of form E without employee?

Interesting to reopen this topic after 3years passes.

i am interested on this topic as well.
i just open a sole prop biz.. Is it we must go file this borang E as well even though no employee yet?