KOLEJ PROFESIONAL MARA BERANANG
GROUP ASIGNMENT
SESSION 1 2023/24
ASSIGNMENT COVER SHEET
Course Details
Course Code : ACC 3623
Course Name : TAXATION 2
Program : DIPLOMA IN ACCOUNTANCY
Session : 3 2022/23
Lecturer’s Name : SAIDATOL AKMAR BINTI ALIAS
Assignment Details
Submission Date : 19 JUNE 2023, MONDAY (WEEK 10)
Student’s Details
Name & ID Number : MUHAMMAD HASBI HAMIZAN BIN SHANUSI (BDA2107-002)
Name & ID Number : AFIQ HISYAM BIN LOKMAN ZAKEY (BDA2107-027)
Name & ID Number : MUHAMMAD NUR RAFI’UDDIN BIN ROZMAN (BDA2107-030)
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Name & ID Number : MUHAMMAD NAQIUDDIN BIN ABDULLAH (BDA2107-037)
TABLE OF CONTENTS:
TAX ESTIMATES:.................................................................................................................................3
MONTHLY INSTALLMENT:.................................................................................................................4
REVISION OF TAX ESTIMATES:........................................................................................................5
SUBMISSION OF TAX RETURN FORM AND PAYMENTS:................................................................7
AMENDMENTS OF RETURN:..............................................................................................................9
FINAL PAYMENT OF INCOME TAX:.................................................................................................11
REFERENCES:....................................................................................................................................13
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TAX ESTIMATES:
Tiara Golden Sdn Bhd is required to submit Form CP204 by e-Filing starting from the Year of
Assessment 2018 based on the subsection 107C (7A). Tiara Golden Sdn Bhd who is a
company in operation in Malaysia, they shall submit e-CP204 no later than 30 days before
the start of the base period for a year of assessment, according to Article 107C (2) of the
ITA 1967.
For the minimum amount of Tax Estimate, for a year of assessment must not be less than
85% of the amount of the amendment of tax estimate or the tax estimate amount (if no
amendment of tax estimate is made) for the previous year of assessment, according to
Section 107C (3) of the ITA.
Next, there is an amendment of estimated tax payable. Tiara Golden Sdn Bhd is allowed to
amend the tax estimates payable by submitting e-CP204A. Form CP204 for a year of
assessment can be revised in the sixth, ninth, or both months of the basis period:
If the amendment is made within the sixth month, the effective instalment may
begin with the fifth or sixth instalment.
If the amendment is made in the ninth month, the effective instalment can be
chosen beginning with the eighth or ninth instalment.
Penalty:
Any company that fails to submit the estimate of tax payable for a year of
assessment without justifiable justification is guilty of an offence and, if convicted,
faces a fine ranging from RM200 to RM20,000 or imprisonment for a term not
exceeding six months, or both.
With effect from Y/A 2011, if no prosecution is brought by the Director General and
no direction is issued by the Director General but a corporation owes tax for that
year of assessment, the amount owed will be subject to a 10% penalty.
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MONTHLY INSTALLMENT:
Registered Companies, Limited Liability Partnerships, Trust Bodies, and Cooperative
Societies that are dormant and/or have not begun business operations are exempt from
filing Form CP204.
For established businesses, the projected tax payable must be paid in equal monthly
instalments commencing with the second month of the assessment year's basis period.
Instalment payments will begin in the sixth month of the basis period for the year of
assessment for new companies, i.e. in the sixth month after the company begins operations.
All businesses must pay their monthly instalments by the 15th of the month.
Penalty Under Instalment Scheme:
If a corporation failed to pay each month's installment on the tax estimate by the
due date, a 10% late payment penalty will be levied on the remaining tax instalment
for the month.
If the distinction between the actual amount of tax payable and the amended
estimate or the initial estimate of tax payable (if no new estimate is provided)
exceeds 30% of the actual tax payable, an additional 10% will be applied.
If the remaining amount of tax payable fails to be paid by the deadline, a 10%
penalty will be levied.
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REVISION OF TAX ESTIMATES:
As an employee of KPMG Tax Services, I can provide you with an overview of the
procedures and obligations that Tiara Golden Sdn Bhd needs to comply with under the Self-
Assessment System (SAS) for the submission of their tax returns form for the year of
assessment 2022.
Under the SAS, companies like Tiara Golden Sdn Bhd are required to estimate their tax
liability for the year and make provisional tax payments based on those estimates. The
company needs to periodically review and revise their tax estimates throughout the year to
ensure that they are making accurate and timely payments. The procedures and obligations
related to the revision of tax estimates include:
Monitoring Taxable Income: Tiara Golden Sdn Bhd should maintain accurate records of
their business transactions and monitor their taxable income. This involves analyzing
financial statements, expenses, revenues, and any changes in the business operations that
may impact the tax liability.
Assessing Tax Deductions and Credits: The company needs to identify and claim all
eligible tax deductions, allowances, and credits. This includes expenses that are tax-
deductible according to the tax laws, such as business expenses, capital allowances, and tax
incentives, if applicable.
Estimating Taxable Income: Based on the company's financial performance and relevant
tax laws, Tiara Golden Sdn Bhd should estimate their taxable income for the year. This
estimation should take into account factors such as revenue, expenses, deductions, and any
changes in tax legislation that may impact the tax liability.
Calculating Provisional Tax Payments: Using the estimated taxable income, the
company should calculate the provisional tax payments required for the year. These
payments are typically made in installments throughout the year, and timely payment is
crucial to avoid penalties or interest charges.
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Failure to comply with the revision of tax estimates may result in penalties. The specific
penalties and consequences for inaccurate or late revision of tax estimates can vary
depending on the tax legislation and regulations of the jurisdiction where the company
operates. Typically, penalties may be imposed for underestimating taxable income, failing to
make timely provisional tax payments, or intentionally providing false or misleading
estimates. These penalties can include financial penalties, interest charges on the
outstanding tax amount, and potential audits or investigations by tax authorities. It is crucial
for Tiara Golden Sdn Bhd to accurately revise their tax estimates and make timely
provisional tax payments to avoid penalties and ensure compliance.
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SUBMISSION OF TAX RETURN FORM AND PAYMENTS:
The procedures and obligations for the submission of tax return form and payments under
the SAS include:
Completing the Tax Return Form: Tiara Golden Sdn Bhd needs to complete the tax
return form for the year of assessment 2022 accurately. The form should include details of
the company's income, expenses, deductions, and any tax incentives or credits claimed.
Filing Deadline: The company must be aware of the deadline for filing the tax return form.
In Malaysia, the filing deadline for corporate tax returns is typically within 7 months from the
financial year-end. It is crucial for Tiara Golden Sdn Bhd to submit the form on time to avoid
penalties or late filing charges.
Calculation of Tax Liability: Based on the information provided in the tax return form,
Tiara Golden Sdn Bhd needs to calculate their final tax liability for the year. This involves
applying the relevant tax rates to the taxable income and considering any applicable tax
incentives or deductions.
Making Tax Payments: Once the tax liability is determined, the company needs to make
the necessary tax payments. The payment should cover any balance of tax due after
considering the provisional tax payments made throughout the year. Timely payment is
essential to avoid penalties or interest charges.
Record Keeping: Tiara Golden Sdn Bhd is obliged to maintain proper records of their tax-
related documents and supporting evidence. This includes financial statements, receipts,
invoices, and other relevant documents that support the information provided in the tax
return form.
Non-compliance with the submission of tax return form and payments can also lead to
penalties. The penalties for late submission or non-submission of the tax return form vary
depending on the jurisdiction. In general, penalties may be imposed for late filing, late
payment of tax liability, or failure to provide accurate and complete information in the tax
return form. These penalties can include monetary fines, interest charges on the
outstanding tax amount, and potential audits or investigations by tax authorities. Tiara
Golden Sdn Bhd should be aware of the filing deadline for the tax return form and ensure
timely submission of the form along with the correct payment of tax liability to avoid
penalties and potential legal consequences.
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It is important to note that the specific penalties and consequences for non-compliance may
vary depending on the tax laws and regulations of the jurisdiction. It is advisable for Tiara
Golden Sdn Bhd to seek professional assistance from KPMG Tax Services or tax professionals
familiar with the local tax regulations to ensure compliance and avoid potential penalties
associated with the submission of tax returns form under the Self-Assessment System.
In conclusion, under the Self-Assessment System (SAS), Tiara Golden Sdn Bhd must adhere
to several procedures and obligations when submitting their tax return form for the year of
assessment 2022. These include the revision of tax estimates, submission of the tax return
form, and making tax payments. The company needs to monitor their taxable income,
assess tax deductions and credits, estimate their taxable income, and calculate provisional
tax payments based on those estimates. It is essential for Tiara Golden Sdn Bhd to complete
the tax return form accurately, meet the filing deadline, calculate their tax liability correctly,
and make timely tax payments. Additionally, the company should maintain proper records of
tax-related documents and supporting evidence to substantiate the information provided in
the tax return form. By complying with these procedures and obligations, Tiara Golden Sdn
Bhd can fulfill their tax obligations under the SAS and ensure compliance with tax laws,
mitigating the risks associated with tax compliance and audits. Seeking assistance from tax
professionals, such as KPMG Tax Services, can provide valuable expertise and guidance in
meeting these obligations effectively.
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AMENDMENTS OF RETURN:
As a representative of KPMG Tax Services, I can provide you with an overview of the
procedures and obligations that Tiara Golden Sdn Bhd needs to comply with regarding the
submission of their tax returns for the year of assessment 2022 under the Self-Assessment
System (SAS). Specifically, we will discuss the procedures for amending the return and the
final payment of income tax. Please note that the following information is based on the
general guidelines and practices, and it’s important for Tiara Golden Sdn Bhd to consult with
a tax professional for specific advice tailored to their situation.
Under the SAS, companies have the responsibility to accurately compute and report their
chargeable income and tax payable. If Tiara Golden Sdn Bhd needs to make any
amendments to their originally filed return for the year of assessment 2022, they should
follow these procedures:
a) Identification of errors or omissions: Review the initially filed return to identify any
errors, omissions, or inaccuracies in the reported information. This could include
mistakes in income, deductions, allowances, or any other relevant details.
b) Preparation of amended return: Prepare an amended return, correcting the errors or
omissions identified in step (a). The amended return should reflect the accurate and
updated information.
c) Submission of amended return: File the amended return with the Inland Revenue
Board (IRB) within the prescribed timeframe. The timeframe for filing an amended
return may vary depending on the jurisdiction, and it’s crucial for Tiara Golden Sdn
Bhd to adhere to the relevant deadlines.
d) Supporting documentation: Ensure that all supporting documentation, such as
financial statements, invoices, receipts, and relevant schedules, are attached to the
amended return. These documents should provide evidence and support the changes
made in the amended return.
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e) Explanation for amendments: Explanation for amendments: It is advisable for Tiara
Golden Sdn Bhd to include a clear and concise explanation for the amendments
made in the return. This will help the IRB in understanding the reasons for the
changes and reduce the possibility of any misunderstandings. After submitting my
tax return to the Inland Revenue Board Malaysia (IRBM), am I able to make any
amendments to it?
Non-compliance with the submission of tax return form and payments can also lead to
penalties. The taxpayer is allowed to make self-amendment on information or assessment in
the Income Tax Return Form (ITRF) submitted to IRBM on time by submitting an Amended
Return Form (ARF) within 6 months.
IRB allows taxpayers to make self-amendments for additional assessment under the
following conditions: -
1. The taxpayers who have summited the ITRD on time.
2. Self-amendment be allowed only once for each Year of Assessment.
3. Taxpayer makes self-amendments in specific forms.
Self-amendment be allowed on information or assessment to correct the mistakes in the
ITRF relating to;
1. Income under declared / not declared
2. Expenses / Other claims over claimed
3. Capital allowances / Incentives / Reliefs over claimed from the due date for
submission of ITRF.
4. In accordance with Section 103(1A), any tax payable/additional tax payable arising
from the amended tax return shall be due and payable on the date of the amended
return. No penalty will be imposed if the amended return was filed within the
submission period.
5. Effective 1 January 2020, the penalty rate is 10% of the amount payable for any
submission of an amended return made after the submission deadline.
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FINAL PAYMENT OF INCOME TAX:
Once Tiara Golden Sdn Bhd has computed their tax liability for the year of assessment 2022,
they must fulfill their obligation to make the final payment of income tax. The following
procedures should be followed:
CALCULATION OF TAX PAYABLE:
Accurately calculate the amount of tax payable based on the chargeable income determined
for the year of assessment 2022. This calculation should consider all applicable tax rates,
allowances, deductions, and any other relevant provisions.
PAYMENT DUE DATE:
Determine the due date for the final payment of income tax. In Malaysia, the deadline for
payment is typically within 30 days from the date of issuance of the Notice of Assessment
(NOA) by the IRB.
MODE OF PAYMENT:
Choose an appropriate mode of payment to remit the tax amount to the IRB. Common
methods include electronic funds transfer, online banking, or physical payment at
designated bank counters. Tiara Golden Sdn Bhd should ensure that the payment is made to
the correct account and that the payment reference or tax code is accurately provided.
RETENTION OF PROOF OF PAYMENT:
After making the payment, it is important to retain proof of payment, such as transaction
receipts or bank statements, as evidence of fulfilling the tax payment obligation. These
records may be required for future reference or verification.
RECORD KEEPING:
Tiara Golden Sdn Bhd should maintain appropriate records, including copies of the amended
return, supporting documents, calculations, and proof of payment. These records should be
retained for the prescribed period as specified by the tax authorities.
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Non-compliance with the submission of tax return form and payments can also lead to
penalties:
1. A late payment of 10% will be imposed on the balance of tax not paid after April
30th / May 15th (Individual: Non-Business) or June 30th / July 15th (Individual:
Business).
2. Appeal Against Tax Increase for Delay in Income Tax Payment
3. Taxpayer can appeal upon the tax increment imposed by submitting a written appeal
to Collection Unit of IRBM branch that’s handling his tax file.
4. The tax increment imposed must be paid regardless an appeal has been lodged.
IRBM will refund the total amount if the appeal is approved.
In conclusion, Tiara Golden Sdn Bhd, as a new client of KPMG Tax Services, has certain
procedures and obligations to fulfill under the Self-Assessment System (SAS) when
submitting their tax returns for the year of assessment 2022. These obligations include the
need to accurately compute their chargeable income and tax payable, as well as making any
necessary amendments to their initially filed return. It is crucial for Tiara Golden Sdn Bhd to
identify errors or omissions, prepare an amended return, submit it to the Inland Revenue
Board (IRB), and provide supporting documentation along with an explanation for the
amendments. Additionally, Tiara Golden Sdn Bhd must ensure timely payment of their final
income tax liability, considering the due date and choosing an appropriate mode of
payment. Retaining proof of payment and maintaining proper records are essential for
future reference and verification. Given the higher compliance obligations under SAS,
companies like Tiara Golden Sdn Bhd may benefit from seeking assistance from tax
professionals, such as KPMG Tax Services, to ensure compliance with tax laws and handle
tax matters efficiently and accurately.
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REFERENCES:
Association of Chartered Certified Accountants. (2018). Tax administration in Malaysia. ACCA
Global. Retrieved from https://www.accaglobal.com/gb/en/student/exam-support-
resources/professional-exams-study-resources/p6/technical-articles/tax-admin-my1.html on
18 April 2023.
PricewaterhouseCoopers Malaysia. (2023). Malaysia - Corporate - Tax Administration. PwC
Tax Summaries. Retrieved from https://taxsummaries.pwc.com/malaysia/corporate/tax-
administration on 18 April 2023.
Tax Estimation | Lembaga Hasil Dalam Negeri Malaysia. (n.d.). Lembaga Hasil Dalam Negeri
Malaysia. http://www.hasil.gov.my/en/company/tax-estimation/
Malaysia - Corporate - Tax administration. (2022, December 9). Malaysia - Corporate - Tax
Administration. https://taxsummaries.pwc.com/malaysia/corporate/tax-administration
Return Form (RF) Filing Programme | Lembaga Hasil Dalam Negeri Malaysia. (n.d.).
Lembaga Hasil Dalam Negeri Malaysia. http://www.hasil.gov.my/en/forms/return-form-rf-
filing-programme/
Tax Payment | Lembaga Hasil Dalam Negeri Malaysia. (n.d.). Lembaga Hasil Dalam Negeri
Malaysia. http://www.hasil.gov.my/en/company/tax-payment/tax-payment/
Guide on Estimate of Tax Payable in Malaysia. (n.d.). 3E Accounting Firm Malaysia.
https://www.3ecpa.com.my/resources/malaysia-taxation/company-income-tax/estimate-of-
tax-payable-in-malaysia/
Tax Estimation | Lembaga Hasil Dalam Negeri Malaysia. (n.d.). Lembaga Hasil Dalam Negeri
Malaysia. http://www.hasil.gov.my/en/company/tax-estimation/
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