KUALA LUMPUR: The Inland Revenue Board (IRB) has urged more eligible companies to participate in the Tax Corporate Governance (TCG) programme to enhance their tax management practices.
IRB Tax Compliance Department section director Norzilah Mat Arbak said the TCG programme was a cooperative compliance initiative by the IRB, aimed at fostering a fair and efficient tax compliance process, with a focus on enhancing the efficiency and effectiveness of organisational taxation governance.
"This programme serves as a collaborative platform for the IRB and taxpayers to enhance corporate tax compliance based on mutual trust, understanding, and open communication between both parties.
"Organisations wishing to participate in the TCG programme need not worry, as there will be no fees charged throughout the programme," she said when appearing as a guest on Bernama Radio's 'Klinik Cukai' programme today.
In addition, Norzilah said the programme focused on evaluating effective taxation governance systems, which would allow organisations to identify, record, and control taxation risks while managing tax matters ethically and in accordance with the law.
According to her, the TCG programme was implemented in two phases, with the second phase commencing on July 1 and open to taxpayers who met the eligibility criteria, while the first phase, a pilot project, ran from June 1, 2022, to June 30, 2024.
Norzilah explained that organisations taking part in the programme could enjoy multiple benefits, including a quicker tax refund process for those meeting the conditions and subject to approval, as well as being assigned a special tax officer to serve as an intermediary with the IRB.
"Organisations can also reduce scrutiny of their compliance activities, as no audit actions or investigations would be initiated by the IRB for three years after confirmation of participation in the TCG programme and if the taxpayer opts for a voluntary declaration, only a minimal review will be conducted," she said.
Norzilah stated that the TCG programme was available to all types of businesses, particularly companies with medium to complex business structures and models that were involved in numerous transactions.
"Investors are increasingly paying attention to how businesses manage and report their taxes. Therefore, qualified public listed companies are strongly encouraged to participate in this programme," she said.
Norzilah said that the implementation of the programme involved five processes, which could take between eight and 12 months, with the organization's status valid for three years.
She said the process began with preparation, including the submission of the participation form to the IRB, followed by a review conducted by an independent reviewer appointed by the company, made up of certified tax practitioners.
"The next step is submitting a self-review evaluation report, along with the findings from an independent reviewer, to the IRB for evaluation. Once a decision is made, the organisation will receive its participation certification," she said.
Norzilah said companies seeking further information about the implementation of the programme could contact the IRB at tcg@hasil.gov.my.
-- BERNAMA
TAG: IRB, tax, management, governance, business, organisation