PENALTIES AND OFFENCES

PENALTIES AND OFFENCES

A punishment
imposed for brea
king
a law, rule or co A breach of l
ntract aw or
ru l e o r i n s i m
pl e
word is an ill
egal
act
EXAMPLE OF PENALTIES AND OFFENCES
 Failure To Furnish Return Or Give Notice Of
Chargeability
fine of not less than RM1,000 and not more than
RM20,000 or will be imprisonment for not exceeding 6
months or both
 Incorrect return
fine between RM1,000 to RM10,000
 Willful Evasion
fine between RM1,000 to RM20,000 or will be
imprisonment for not exceeding 3 years or both
EXAMPLE OF PENALTIES AND OFFENCES
 Understatement of tax
fine of not less than RM2,000 and not more than
RM20,000 or will be imprisonment for not exceeding 3
years or both
 Leaving Malaysia Without Payment Of Tax
fine between RM200 to RM20,000 or will be
imprisonment for not exceeding 6 months or both
 Obstruction of officers
fine between RM1,000 to RM10,000 or will be
imprisonment for not exceeding 1 year or both
EXAMPLE OF PENALTIES AND OFFENCES
 Breach of confidence
fine not exceeding RM4,000 or will be imprisonment
for not exceeding 1 year or both
 Offences by officials
fine not exceeding RM20,000 or will be imprisonment
for not exceeding 3 years imprisonment or both
 Unauthorised collection
fine not exceeding RM20,000 or will be imprisonment
for not exceeding 3 years imprisonment or both
EXAMPLE OF PENALTIES AND OFFENCES
 Failure to keep records
 fine of not less than RM300 and not more than RM10,000
or will be imprisonment for not exceeding 1 year or both
 Other offences
 fine of not less than RM200 and not more than RM20,000
or will be imprisonment for not exceeding 6 months or both
 Failure to furnish country-by-country report
 fine of not less than RM20,000 and not more than
RM100,000 or will be imprisonment for not exceeding 6
months or both
EXAMPLE OF PENALTIES AND OFFENCES
 Incorrect returns, information returns or reports
fine of not less than RM20,000 and not more than
RM100,000 or will be imprisonment for not exceeding 6
months or both
 Non-compliance to mutual administrative assistance
fine of not less than RM20,000 and not more than
RM100,000 or will be imprisonment for not exceeding 6
months or both
Power to compound offences and abate
or remit penalties
◦ The DG may at any time before conviction, compound the offence and order
that person to pay such sum of money, not exceeding the amount of the
maximum fine and any special penalty to which that person would have been
liable if he had been convicted of the offence, as he thinks fit.
◦ In practice, a compound is for an amount less than the penalties of fines
provided in the Act. The objective is to avoid court proceedings which can be
lengthy, expensive or even embarrassing.
◦ The DG may abate or remit any penalty imposed under the Act except a
penalty imposed on conviction.
Reference
◦ Choong Kwai Fatt (2021), Malaysian Taxation: Principles and Practices, 27 th Edition, Malaysia,
Inforworld