Thursday, April 15, 2010

TAX EVASION- WHY IN MALAYSIA

Tax evasion is defined as an illegal act of deliberately not paying due taxes or paying less amount than one is supposed to pay. As i mentioned before evading tax is punishable by law.

The purpose of this post is not to narrate on this act but i just have been puzzled by people who commit this offence in Malaysia, i mean seriously, with the number of reliefs the Malaysian government put in place as incentives to encourage people to pay tax, i really do not see why anyone would try to evade taxation in Malaysia. There are so many personal reliefs such as books, spouse, child relief, personal computer and EPF contribution. With all this as a neutral person you would at times think the Malaysian government really doesnt wanna tax its citizen but because its the major contributor to its revenue they are left with no choice but to do it.

If i was a tax payer i would really feel ashamed of myself if for once i found myself caught up with the law because i evaded tax given the incentives put before me by the government. Not only are there reliefs for taxpayers, they locals taxpayers are entitled to a few rebates and are also charged on progressive rates, which means the higher you earn the more you pay. And with all this at no way i would try to run away from paying tax. One other thing to note is how the government has not only come up with incentives to lower chargeable income but they have developed method through which people can pay tax conviniently without going through long processess.

Tax payers should look deeper than enriching the government when they pay taxes, they should know its the tax they pay that gives them developments and infrastructure the need. they should think of it as building their nation for the betterment of their future offsprings and their generations. With this i wish to say i hope Malaysia government can tighten up and bring all perpetrators of this law to book they is just no single excuse i can think of as to why the do this, unless of cos if they are not citizens, that will be a bit understandable but again no form of tax evasion is acceptable no matter how unfavourable the conditions are.

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