QUOTE(plsp88 @ Feb 17 2020, 09:49 AM)
Thanks Sifu. What is troublesome for me is, my intention is to save tax, but i also chicken out if LHDN want to audit me, i already been audited twice within 6 months (year 2016&2017 but thats is before my "business" start, so wasn't that bad).
I only use my rental apartment for address and its not really an "office", my staff is my mom and wife (heard it doesn't work out if question by HASIL) and i only agak2 my expenses without bookkeeping, was hoping nothing happen but I guess new government really need fund raising, so after I got the 2nd audit letter from HASIL which is only 3 months after my 1st audit, i chicken out..
But I also thinking, if i close my business now after the audit, will it make it more suspicious for HASIL?
Once you register for a business. Immediately CTOS will pick up this information already. LHDN surely know about this. The only thing LHDN doesn't know is whether you have any sales in this business or not.
As long as your mom & wife declare the income you pay them, then it will be a genuine expenses for your business.
Sole prop doesn't offer much tax saving benefits compare to a limited liability company (Sdn Bhd). And because sole prop it's a business, all your business related expenses can be claim as expenses and if there's fixed assets then you get to claim capital allowance also.
Accounting fees + tax computation isn't that expensive for a year. If you need help, do pm me.
This post has been edited by rapple: Feb 17 2020, 10:29 AM