Insurance agent company wins IRB appeal on tax payment

According to a press statement, the company was tax audited by IRB after finding the way of treatment of recognition of its commission income was not in line with the way of payment of commission made by the insurance company. — Malay Mail photo

KUCHING (March 8): An insurance agent company’s appeal to the Inland Revenue Board (IRB) over additional taxes was accepted by the Board recently.

According to a press statement, the company was tax audited by IRB after finding the way of treatment of recognition of its commission income was not in line with the way of payment of commission made by the insurance company.

Based on this finding, IRB readjusted and revised the assessments for YA 2009 and 2010 requiring the insurance agent company to pay a total amount of additional tax payable of over RM82,000 inclusive of penalty imposed under Section 113(2) of Income Tax Act (ITA) 1967.

Being aggrieved by the additional assessment, the insurance agent company filed notices of appeal to the Special Commissioners of Income Tax (SCIT).

The company then through its tax agent submitted a lengthy representation to IRB for review of the appeals.

After having perused and delved into the representation submitted, the IRB finally accepted and agreed to allow the appeals.

The appeals were then recorded as settled through a Settlement Agreement filed before the SCIT.

The insurance agent company was represented by tax agent Toh Yong Lai and Denis Wee of JK Tax Services Sdn Bhd and assisted by Lam Kam Wing, a tax consultant from Kuching.

from Borneo Post Online https://bit.ly/3hTkSap
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