Outdated personal info, bank account details hindering tax refunds

File photo for illustration purposes

KUALA LUMPUR, March 19: Failure to update personal information and bank account details are significant factors behind why tax refunds fail to be paid out, said the Inland Revenue Board of Malaysia (IRBM).

In a statement yesterday, the board said it places great importance on the processing of tax refunds to ensure taxpayers eligible for a tax refund receive their refund in the stipulated timeframe.

“However, failure in updating personal information and bank account details results in the failure to complete the tax refund process.”

Based on 2018 records, 6.22 per cent or about RM486.29 million in refunds failed to be paid. The reasons given are:

i. Undelivered cheques or vouchers to taxpayers due to difference in taxpayer’s address with the address registered in IRBM’s database;

ii. Mismatch of bank information, account number and identification number / company registration number between IRBM’s database and with that of the bank; and

iii. Closed or inactive bank account.

Taxpayers are advised to update their latest personal and banking information in the annual Income Tax Return Form (ITRF) in a move to assist IRBM in minimising the failure rate of processing tax refunds. In addition, they also can use the e-Kemaskini system or the Feedback Form which can be accessed online at any time through www.hasil.gov.my to update their personal and banking information.

Among information needed to expedite the tax refund process include personal identification number, bank account number, correspondence address, telephone number, e-mail address and company registration number (for taxpayers under the company/organisation category).

Starting January 1, 2020, income tax refunds will be fully made using the electronic method of e-payment which is in line with the government’s aspiration to preserve the environment by promoting paperless Go Green campaign. IRBM will also increase the use of online tax refund payment transactions via the Electronic Fund Transfer (EFT) method.

For further inquiries, visit www.hasil.gov.my or contact Hasil Care Line LHDNM at 1-800-88-5436 or 603-77136666 (overseas). — DayakDaily