The searing temperatures of the 2019 General Election fever is going down and we are back to the grind of fulfilling our daily routines and responsibilities. While we are now in an era of new Malaysia, there some old matters that requires attending to as soon as possible, with the upcoming business tax submission deadline high on the priority list.
Whether you are a seasoned businessman or a young entrepreneur, tax deadline waits for no man and incorrect submissions spares no one. More so for the latter, here are some quick suggestions on tax submissions for your business which, we hope, will help you address at least the basics. Firstly, avoid downplaying your business income.
If you think you can do that and get away with it, think again! The Inland Revenue Board (IRB) will eventually identify you and the fines, hefty ones at that, will come calling. While our intention here is not to scare you, but you must also shudder at the thought of being barred from leaving the country or even imprisonment, depending on the severity of your offence.
While it’s true that you are only required to pay taxes if you exceed a certain annual amount ,it’s still important to submit and declare your income to ensure your records are in order with the IRB. Another common issue with some small and medium enterprises (SMEs), sole proprietors and young entrepreneurs is record keeping.
It’s important that you keep crucial business records such as profit and loss accounts, bank statements, invoices, receipts, reliefs, rebates etc., for at least seven years from the date of filing, irrespective of your income being taxable or not. You will be required to produce them when the tax auditor comes knocking on your door.
Finally, PLEASE! Do not listen to those that tell you to commit certain discrepancies to your tax submissions or evade tax altogether. We have come across many entrepreneurs being led down the garden path by “friends’ who claim to have done this effectively and got away with it.
JS Partners is here to help you navigate your way through to proper and accurate tax submissions for your business. Give us a buzz at +603 6250 1615. We will be happy to speak to you and address your tax and accounting concerns.
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