Wee calls for independent IRB

New Straits Times

a day ago

KUALA LUMPUR: A member of Parliament has called for reform of the Inland Revenue Board (IRB), proposing that it be established as an independent statutory body accountable to Parliament rather than remain under the control of the Finance Ministry.
Datuk Seri Dr Wee Ka Siong (PH–Ayer Hitam) said such reform is necessary to ensure a clear separation that prevents any influence from political interests or fiscal pressures faced by the government.
"IRB must not be seen as a political tool and should follow the dictates of the executive, regardless of who is in power.
"It should no longer operate directly under the Finance Minister, as it has done previously and continues to do now.
"So, I propose that IRB be established as an independent statutory body under the oversight of Parliament," he told the Dewan Rakyat during the 13th Malaysia Plan debate here today.
Wee cited examples of the Internal Revenue Service in the United States, which is monitored directly by Congress, and the UK's His Majesty's Revenue and Customs, which operates independently from ministerial instruction.
He said these agencies have their own board of directors, and decisions related to audits or investigations cannot be directed by the government.
Meanwhile, Wee said there has been a growing number of complaints from small and medium enterprises, who claimed that tax refunds have been delayed.
"This creates the perception that the government is borrowing the people's money without interest," he said.
He cited a recent case in which a taxpayer had applied for a RM13,000 refund, only to receive a response from IRB offering RM650, with the remaining amount to be paid over four years.
"This shows why the power to determine tax interpretation, appeals and approvals for reliefs must be placed under an independent authority, one that is not subject to the influence of those currently in power," he said.