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Public Ruling (PR) No. 4/2022 – Recovery from Persons Leaving Malaysia
The Inland Revenue Board (IRB) has published PR No. 4/2022: Recovery from Persons Leaving Malaysia, dated 20 October 2022. This new eight-page PR replaces PR No. 12/2015, which was issued on 17 December 2015 (see Tax Alert No. 1/2016). The new PR comprises the following paragraphs and sets out four examples:
1.0 Objective
2.0 Relevant provisions of the law
3.0 Interpretation
4.0 Introduction
5.0 Preventing a taxpayer from leaving the country
6.0 Allowing a taxpayer to leave the country
7.0 Payment method
8.0 Consequences of leaving or intending to leave the country without payment of tax and debts
9.0 Responsibility of a taxpayer
10.0 Updates and amendments
11.0 Disclaimer
Similar to the earlier PR, the new PR explains the circumstances and procedures for recovering tax and debts due from taxpayers who will be leaving Malaysia. Under Section 104 of the ITA, the Director General (DG) may issue a certificate (i.e., a stoppage order) to the Commissioner of Police or Director of Immigration, requesting that a person be prevented from leaving Malaysia unless the person has settled all the outstanding taxes for which he is liable (including taxes owed by companies, which the person is jointly and severally liable for as the Director of the company – note that this applies only in very specific situations), or furnishes security for the payment to the satisfaction of the DG.
The new PR was updated mainly to reflect the legislative changes outlined below:
- Pursuant to the Finance Act 2019, effective from 1 January 2020, the scope of the stoppage order was expanded to include the increase of taxes in cases where the company has failed to submit an estimate of tax payable under Section 107C(10A) of the ITA.
- Pursuant to the Finance Act 2020, effective from 1 January 2021, the stoppage order may be issued through an electronic medium or by way of electronic transmission.
The updated PR also stipulates that payment for outstanding taxes and debts are now to be made through the following methods:
(a) MyTax Portal at https://mytax.hasil.gov.my via ‘ezHasil Services’ > ‘ByrHASiL’
(b) For those appointed as HASiL’s collection agent:
- Internet banking portal of commercial banks
- Pos Malaysia or commercial bank counters
- Bank cash deposit or automatic teller machines