I had PM you

She willing to pay the entitle taxes but not the penalty for the mistake made by the firm.

Plus, she was advised by the new accountant to lodge a complain to the Accounting Association in Malaysia once she start suing the firm as the association will help assist on this matter and might revoke the rights and the license of the charted accountant whom endorse her assessment. (which she intentionally do not want to go this far).

I would suggest to raise this up with MIA and Chartered Tax Insitute of malaysia. This is a very serious offense and every firm pays for indemnity insurance

Also, double check if there are even registered as a tax agent. There are a lot of bogus tax agents out there

This post has been edited by sikentut: Apr 13 2018, 12:05 PM

Were the assessments estimated ones under Section 90 (2) ?

Look at the top of the Assessment Notice. If so, Section 90 (2) will
be printed there.

These type of assessments are estimated or advance ones usually made by
the Inland Revenue when the taxpayer fails to file a return for the year.

Such assessments are easy to appeal and will usually be reduced once
you file a proper complete return.


Write to the Finance Ministry's tax division, as mentioned,
claiming error and mistake relief under Section 131.

Write to the top man here in the "Tax Division" here. CC to the two below him.

http://www.treasury.gov.my/index.php/en/co...-directory.html


Explain that you had made a genuine mistake in omitting
the income, as the form had been filled by the tax agent,
who never advised nor informed you of such omission.


Mention that it is not the IRD's practice to impose 100 % penalties.
Appeal to them to reduce or waive the penalties.

Scan copies of all assessments and attach them to your mail.


http://www.agc.gov.my/agcportal/uploads/fi...EN/Act%2053.pdf


Public Ruling No. 7 of 2015 here also explains this.

http://www.hasil.gov.my/pdf/pdfam/PR_7_2015.pdf



Look at the back of the Form B.

There is a section to be signed by the tax agent. This
was added in some years ago. Previously there was
no such section.

This means the tax agent is also liable by law.


Tax agents come under Section 153.

Explain in your appeal letter to the Finance Ministry that
the tax agent was negligent in his duties under Section 153
of the Act, and action should be taken against him for such
negligence.



This post has been edited by Tham: Apr 13 2018, 07:42 PM

Thanks for the additional information and the directory

really unprofessionals

Walao... the list of staff is all gone now....

Can pm me the accounting firm as well? This is terrible. I am sorry for you TS.

I really suggest to complain it to MIA and also hired a lawyer to sue the accounting firm.

Based on my experience and my practice, we will get the confirmation from the tax payer before we proceed for the submission of annual tax return (ATR) to the IRB..

We will prepare the tax computation with details, i.e. analysis of accounts and show any breakdown on the sensitive items.. So that tax payer will aware and review.. We will put a remarks if there is insufficient information, so that tax payer will need to provide the information or to confirm on the information given..

In our letter also got clause " we have prepared the tax computation based on the information given by the company and we have not undertaken an audit or conduct any verification on the completeness and accuracy information provided to us. We have to rely on your company to bring to our attention and particular disclosed which is incomplete or incorrect to that ATR"..

For the tax agent, our job scope is prepare the ATR based on the Auditors Report and information from the company.. However, the tax agent also need to advise to the tax payer on which sensitive items that need further information in order to determine the deductibility of the expenses..

After clients, confirm all in order, the tax payer need to sign on the confirmation letter (prepared by us) and the draft Form B, BE, C etc. if the tax payer agree..

Plus, in our appointment letter also already stated that the tax agent will not be liable for any penalty imposed by the IRB for any understated of information or wrong declaration..

From your cases,

Your friend
1. Your friend suppose to review all the tax computation before agreed and signed the Form.
2. Your friend suppose to ask everything even though not much knowledge on the taxation i.e. what income subject to tax or not, and what expenses subject to tax or not, any rebates or not, what is the tax rates
3. After tax agent submitted the ATR, your friend suppose to ask a copy of submitted form and review it again
4. Your friend suppose to deal with registered tax agent

Tax agent
1. tax agent responsible to explain the tax computation that he has prepared
2. if registered tax agent firm, there must be a preparer and reviewer before the tax computation is release to the tax payer / client
3. If you looking to non registered tax agent (means they prepare the tax computation using Tax Payer account) and not registered tax agent (using TAeF tax agent efiling), then your friend is in trouble..


Solution

If the IRB already issued the additional assessment and penalty, your friend is require to make a payment first before can appeal.. otherwise, penalty on late payment will be increase..

your friends may try to appeal, but need a strong supporting documents and explanation.

accounting firm has professional indemnity insurance

with that ammount, get lawyer to claim for you

can try this one, quite a reputable one

https://www.shearndelamore.com/

Usually will have insurance for mistake unless some scam accounting company.

Dear Aregip,

Thanks for the highlights; the Tax Agent is a reputable agency back then.
As pointed out by you; they did not explained the tax computation nor prepare in such details length as mention by you.
All was summarised and stated this is the amount need to be paid and informing everything had been arrange in order and ask my friend to sign it for submission.
Hence during the income tax interview with the officer; the Tax Agent who did the account were not able to answer the tabulation made and just nodding his head while replying will check it.

She had written the letter of appeal and will be meeting up the income tax officer soon.

Woww! Reputable tax agent, but not advise their client accordingly? Then, if like that, all i can say that tax agent will be liable for what they have done..

Suppose they need to prepare a set of tax computation to suppose the ATR.. Otherwise, how their key in into e-filing? Just simply key in? If they can not justify all thosw thing, then ask your friend to sue him and ask tax agent to bear all the cost..

Make sure compile all the evidence i.e. Supporting documents or any black and white documents..

May i know, your friends filing return is submitted under the tax agent (TAeF filing) or under your friends name? How to check, is by look at into submitted slip (1st page) and there is stated who submit your friend's ATR.. If tax agent, then you got 1 point to win..

Should pay lhdn first
LHDN vs Tax payer is unrelated to Tax payer vs Tax agent

Had visited the LHDN; the officer inform her files are no longer with them and had been pass to the "SO CALLED" blacklisted department and wait for appointment......

Will check on that; coz now all the files had been send to new accountant for review.

I thought all those can claim 100%? Entertainment only can claim 50%..

I am not accountant or tax agent

Everything is still there.

I have given you the link.

You do not know how to navigate?

can PM me the company name of the tax agent?

look back at the ea, see the firm got any caveat? and check what info you have provided to him/her, is the salary clearly stated there as well? i.e. u provided all the necessary info but they compute it wrongly?