ROLE PLAY PTX1033

Описание: SYNOPSIS OF ROLE-PLAY PTX1033

TITLE: THE COST OF UNDECLARED INCOME: A LESSON UNDER THE SELF-ASSESSMENT SYSTEM

This role play highlights the importance of tax compliance under Malaysia’s Self-Assessment System administered by the Inland Revenue Board of Malaysia (LHDN). The story centres on Syazana, a salaried employee who also operates a small online sambal business as a side income. On 30 April 2025, she submitted her income tax return through e-Filing using Form e-BE, which is meant for individuals with employment income. However, she did not declare the net profit from her online business, assuming that the additional income was insignificant and did not require reporting.

The issue comes to light when Syazana receives a Notice of Additional Assessment (Form JA) from LHDN after undeclared business income was detected. Her colleague, Fifi, plays an important role in advising her to seek professional assistance. Syazana then consults Iffa, a tax agent, who explains her legal obligations under Section 77 of the Income Tax Act 1967, which requires taxpayers to declare all sources of income. As she had submitted an incorrect return, a 45% penalty was imposed under Section 113(2) of the same Act.

Determined to correct her mistake, Syazana cooperates fully with Lily, the IRB officer handling her case, and later presents her appeal to Adriana from the Appeals Unit. With guidance from the tax agent, she proceeds with an adjustment of income, voluntary disclosure, and submission of an official appeal letter supported by relevant documents. Considering her honesty, cooperation, and first-time offence, the penalty is reduced from 45% to 15%. The role play concludes by emphasizing that under the Self-Assessment System, responsibility lies with the taxpayer, and all income, whether salary or side business profit, must be declared to ensure compliance and avoid legal consequences.