can this usually be done?

@ttwangsa,
I don't think it's possible

@ttwangsa,

You cant.

LHDN requires company to deduct PCB straight from employee's salary.
However, one can always inform their HR which some HR allows not to deduct PCB straight from monthly salary. But usually HR is reluctant to do that.

@b00n,
I don't think it's possible because it becomes illegal for the companies involved. U can however butter ur HR to ask her if she could pay a lesser amount based on ur salary range; I sort off did that as I didn't want LHDN to be owing me $.

At the end of the day, I had to fork out an additional RM4k to make up to it *pocket hurts*

Yup, company can be charged/compounded by LHDN if company fails to do so, if not mistaken. It is compulsory for company to do it.

@b00n,
I forgot to add.. HR spoke with me and said they had to readjust my LHDN payment up as LHDN will now fine the organisation if they're found to be paying less than what the tier rate says *bummer*

One way to save tax is asking for smaller income, just joking.

But you can arrange for benefits in kind that attract smaller tax amount.

@SKY 1809,
Hence I do not have a fixed allowance. Instead, I make claims of up to RMx p/year with each months claims being a different figure *grins*

Also, I never complained about paying taxes

ok, thanks for the infor.

But there's one case whereby one of my colleagues used to be a contract thus the previous salary and PCB is by say company A.
But when the current company converted the said employee to permanent, the current company didn't include the PCB portion. Thus it's only during tax declaration that the said employee pays the income tax.

OT: Talking about income tax, how many received letters from LHDN saying that the refunds cannot be processed and might required further investigation etc...
I received that. Do they actually ask for the receipts and stuffs?

This post has been edited by b00n: Jul 4 2008, 05:38 PM

@b00n,
I sure hope U kept all the receipts and up till the last 7 years too cause LHDN has the right to ask U to provide documentations for up to the last 7 years.

I've not gotten such a letter before; but that's also because they don't owe me $ and I've not collected the $ I had with them from 2/3 years ago *grins*

They might call me re the recent property I purchased but I've never cheated them so I've nothing to worry about U shouldn't too if u aren't guilty

You are talking of expenses reimbursed by company on actual spent for business production, that it saves you for paying tax . However ( the way you describe it ), it could go against the tax law,if not careful.

Benefits in kind could be a form of tax planning. We are talking diff things here.

This post has been edited by SKY 1809: Jul 4 2008, 06:06 PM

@SKY 1809,
The better word to use would be planning otherwise it'll be evasion *grins* And yeah let's not even discuss that on a public forum *grins*

I'm mostly referring to expenses reimbursed to me; except I sometimes inflate it and some times declare less *grins* It's troublesome putting in those claims so I just make sure I do it when the figure becomes substantial