Travel ban (HL)

R. Sittamparam
New Straits Times
04-28-2011
Travel ban (HL)
Byline: R. Sittamparam
Edition: Main/Lifestyle
Section: Main Section

KUALA LUMPUR: Tens of thousands of income-tax defaulters have been barred from travelling overseas annually.

Last year, 60,216 defaulters were barred from travelling by the Inland Revenue Board (IRB), its public relations officer, Masrun Maslim, told the New Straits Times yesterday.
Under Section 104 and Section 22 of the Income Tax Act 1967, Malaysians and even foreigners would be barred from leaving the country if they failed to settle their taxes.

In 2009, 48,557 tax defaulters faced the IRB's travel restrictions, a dip from the 2008 figure of 53,917.

The amount owed was not available, but it is learnt that a large number of defaulters were businessmen and those who had obtained permanent residence in foreign countries.

Foreign artistes, sportsmen and expatriates must also pay their dues before they can leave.

Masrun said 147,601 taxpayers out of the 207,005 (about 70 per cent) who submitted their 2010 income tax returns via the IRB's e- filing between March 1 and 31 had overpaid the board.

It had refunded promptly the excess and as of Tuesday, 135,777 taxpayers had received their refunds.

Masrun said the remaining taxpayers would receive their dues within the stipulated period in accordance with its client charter.

"Taxpayers who filed their returns via e-filing will receive their refunds within 30 days compared with 90 days for those using the manual system.

"We, therefore, urge taxpayers to use the online system as their refunds will be processed faster."

Masrun said the IRB had to date received 1.36 million tax returns via e-filing and 800,000 forms.

"It is encouraging to see more taxpayers using e-filing now compared with last year when 1.11 million filed their taxes online in the same period (March 1to April 27)."

This represents an increase of 23.07 per cent.

Asked why some taxpayers were still reluctant to use e-filing, Masrun said: "They are still not confident with the security system. They have the perception that e-filing is not secure and difficult, especially those who have dividend income.

"They prefer to fill in manually the 'Helaian Kerja 3' (HK-3) form rather than key in the amount in the electronic form.

"Others simply have no access to the Internet."

For information, visit www.hasil.gov.my or call 1-300-88-3010.

(Copyright 2011)