I don't have any problems with Income Tax Dept so far, they always refund my excess PCB deductions, sometimes automatically, sometimes give them a call. All the while I've maintained my file in my home town. Small town less files less work to do, my file got processed faster. I also make sure I return my forms in March although the final date is 30 April.

I think it is important to take the initiative to open a file with the Dept once started working even though not taxable. When your file is in order, they don't need to refer to previous years when assessing the current year, and so they can complete the assessment in a short time. We have to think that these officers always go for training, leave, mc etc and transfer here and there, so the moment if they need to refer to previous years info, then it will take a very long time.

Yes you can. You have the right to ask them to open a file for you. If they still insist you can't, I think the only reason they say no is to avoid doing extra work.

My junior colleague who started work in July 2005 only earns RM12K for the 6 months and logically not taxable, but she managed to have an income tax file open for her in 2006. However once you have a file open, you must make sure you file the return irrespective of taxable or not.

My own Income Tax file was open not because I have started working or have any income, but because I want to claim back the 28% tax that have been deducted from share dividends. And I always get those money back from IRB.