Income Tax

Income Tax Offences, Fines and Penalties

As per Income Tax Act (ITA) 1967 any person who committed for an offence will be fine either through penalty of imprisonment or both depending on severity or the number of offences.

The following table is the summary of the offences, fines & penalties for each offence.

Type Of Offences Provisions Under ITA 1967 Amount Of Fine (RM)
Fail to furnish an Income Tax Return Form. 112(1) 200 to 2,000 or imprisonment or both
Fail to give notice of changeability to tax. 112(1) 200 to 2,000 or imprisonment or both
Make an incorrect tax return by omitting or understating any income. 113(1)(a) 1,000 to 10,000 and 200% of tax undercharged
Give any incorrect information in matters affecting the tax liability of a taxpayer or any other person. 113(1)(b) 1,000 to 10,000 and 200% of tax undercharged
Wilfully and with intent to evade or assist any other person to evade tax. 114(1) 1,000 to 20,000 or imprisonment or both and 300% of tax undercharged
Assist or advise others to under declare their income. 114(1A) 2,000 to 20,000 or imprisonment or both
Attempt to leave the country without payment of tax. 115(1) 200 to 2,000 or imprisonment or both
Obstruct any authorized officer of IRBM in carrying out his duties. 116 1,000 to 10,000 or imprisonment or both
Fail to comply with an order to keep proper records and documentation. 119A 300 to 10,000 or imprisonment or both
Fail to comply with a notice asking for certain information as required by IRBM. 120(1) 200 to 2,000 or imprisonment or both
Fail to give notice on changes of address within 3 months. 120(1) 200 to 2,000 or imprisonment or both

Penalty for Late Income Tax Payment

As per Income Tax Act (ITA) 1967, payment of income tax income tax has to be settle by the due date. Penalty will be imposed for any payment made after the due date.

For individual with employment & no business income, the dateline is 30th April while individual with business income, the dateline is 30th June.

The penalties are as per the following table.

Source of Income Dateline Provisions Under ITA 1967 Penalty
Employment with no Business 30th April 103(3) a) 10% increment for the tax payable

b) Additional 5% increment on the balance of (a) if payment is not made after 60 days

Business 30th June 103(4)