Late submission of tax return forms and late payment of tax are common mistakes in tax filing. However, all these “common mistakes” might cost you a penalty up to RM20,000! Even if you didn’t submit a notice to LHDN regarding your mailing address amendment, you will face a penalty as well!
Let’s take a look on the list of LHDN penalties! Don’t forget to share it with your friends and family!
| 1. Payment of Income Tax After Deadline | ||
|---|---|---|
| Type of Offences | Provisions Under ITA 1967 | Penalties |
| Payment of Income Tax after deadline. | Section 103(3) | 10% increment from the tax payable. |
| 2. Payment of Estimated Income Tax Instalments After Deadline (For Business Income) | ||
|---|---|---|
| Type of Offences | Provisions Under ITA 1967 | Penalties |
|
Payment of Estimated Income Tax instalments after deadline (For Business Income). |
Section 107B(3) | 10% increment from the tax payable. |
|
Actual tax 30% higher than the revised estimate of tax. |
Section 107B(4) |
10% of the difference in actual tax balances and estimated tax made. |
| 3. Other Offences, Fines and Penalties | ||
|---|---|---|
| Type of Offences | Provisions Under ITA 1967 | Penalties |
|
Failure (without reasonable excuse) to furnish an Income Tax Return Form / give notice of chargeability to tax. |
Section 112(1) |
A fine up to RM20,000 / Imprisonment not exceeding 6 months / Both. |
|
Make an incorrect tax return by omitting / understating any income. |
Section 113(1)(a) |
A fine up to RM10,000 & 200% of tax undercharged. |
|
Give any incorrect information in matters affecting the tax liability of a taxpayer or any other person. |
Section 113(1)(b) |
A fine up to RM10,000 & 200% of tax undercharged. |
|
Willfully and with intent to evade or assist any other person to evade tax. |
Section 114(1) |
A fine up to RM20,000 / Imprisonment not exceeding 3 years / Both & 300% of tax undercharged. |
|
Assist or advise (without reasonable care) others to under declare their income. |
Section 114(1)(a) |
A fine up to RM20,000 / Imprisonment not exceeding 3 years / Both.
|
|
Obstruct any authorized officer of IRBM in carrying out his duties. |
Section 116 |
A fine up to RM10,000 / Imprisonment not exceeding 1 year / Both. |
|
Fails (without reasonable excuse) to comply with an order to keep proper records and documentation. |
Section 119(a) | A fine up to RM10,000 / Imprisonment not exceeding 1 year / Both. |
|
Fails (without reasonable excuse) to give notice on changes of address within 3 months. |
Section 120(1) |
A fine up to RM20,000 / Imprisonment not exceeding 6 months / Both. |
|
Fails (without reasonable excuse) to comply with a notice asking for certain information as required by IRBM. |
Section 120(1) |
A fine up to RM20,000 / Imprisonment not exceeding 6 months / Both. |
(201706002678 & AF 002133)