PAC calls for stronger enforcement to curb tax arrears, leakages

New Straits Times

5 days ago

KUALA LUMPUR: The Public Accounts Committee (PAC) has urged the Inland Revenue Board (IRB) to step up efforts to reduce the risk of increasing accounts receivable and taxpayer appeals.
PAC chairman Datuk Mas Ermieyati Samsudin said the committee also recommends that IRB strengthen enforcement of existing tax laws while implementing improvements from time to time to enhance the management of accounts receivable.
"PAC acknowledges IRB's initiatives to enhance the management of accounts receivable, including internal improvements such as automating the issuance of tax arrears notification letters and expediting travel restriction procedures.
"Continuous monitoring must be carried out to ensure the effectiveness of the overall tax assessment process, along with more proactive enforcement of tax laws to curb leakages and fraud in tax payments," she said in a statement today.
Accounts receivable refers to the money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.
On the implementation of the e-Invoice system, Mas Ermieyati said PAC welcomes the government's initiative, which takes into account the commitments of taxpayers, particularly those in the Micro, Small and Medium Enterprise category, in complying with the legal requirements for e-Invoicing, and the need for sufficient preparation time.
She said PAC recommends that IRB provide comprehensive support and guidance to all taxpayers throughout the preparation phase for e-Invoice implementation.