LETTER | I refer to the “scandal" regarding the not refunded good and service tax and income tax amounting to RM42 billion which has gone missing

While accusations and counter-accusations are traded between the “guilty” old government and “hero” new government, the most important factor of this issue is being ignored.

We taxpayers need our refunds now, not next year, not the year after or not when the government has monies as the government will never have enough money as shown by its track record for the last 10 years.

We want and need the money back now.

If the government can’t afford RM42 billion, how on earth can normal individual taxpayers and small businesses cope? When millions are due back, even large companies will suffer. The government should borrow and give back our refunds.

If the government indeed has no money, why is it each minister can have a maximum of 10 aides? Why, surely existing ministry officials can undertake some of the minister's work.

In the UK, overdue tax refunds are entitled to interest. In Malaysia, they are not so we lose out from all angles.

Out IRB is a champion for using a massive “harvester” to demand as much tax as possible so they now can’t play innocent and claim the Treasury has not given them enough to refund. Why did they not keep the refunds before remitting the balance to the government? Is this because their KPI and bonus are based on collection so their SOP is just to collect and collect?

Any bonus paid to IRB staff based on their collections made must be clawed back after deducting for the un-refunded amounts.

The finance minister confirmed that the tax remitted to consolidated accounts have been accounted for as government revenue which means it is overstated and incorrect.

The current government revenue will then be understated as when they eventually refund the taxes, they will have to deduct from the current year revenue. Double whammy I say, left by the clueless free-spending previous Einstein.

I suggest the following so that the government and taxpayers do not find themselves shortchanged:

· All overdue refunds be entitled to interest and this interest is deducted from IRB KPI calculations so that they process the refunds quicker;

· Income tax return forms are amended to include a column to state the brought forward refunds due so that our forms show a running balance and only the net tax payable, or if the net amount is still refunds due it is carried forward until repaid. Our current forms which show a balance on a yearly basis is not acceptable anymore as this allows a cunning government to collect and use monies not due to them;

· All monthly instalments are stopped for taxpayers who are owed refunds;

· IRB and customs only remit the net balance on a monthly or periodic basis to the consolidated account. For example, in September 2018 the collection is RM10 billion but returns show RM2 billion in refunds due so only RM8 billion should be sent to the consolidated fund. A consistent approach this way will slowly eradicate the humongous outstanding amount;

· IRB and customs KPI for collection is amended to include actual collection less the refunds due;

· All returns are considered final unless IRB and customs raise a valid query. Just blindly investigating by “audit meja” or a field audit should not qualify for stopping of the interest calculation or refunds due. This is what IRB has been doing as when there is a huge refund due, they raise all sorts of queries to nullify the refund. This practice should stop.

The government owes citizens a moral and legal duty to just collect the right amount of tax. Collecting any amount above that is extortion and is illegal as the power to collect tax is based on laws passed by Parliament; not at the whim and fancy of an officer who has a KPI to meet.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.