Chang Mei Seen, executive director – Transfer Pricing, KPMG Tax Services, while agreeing that the focus of the 2018 Budget was on the well-being of the rakyat , she also commended the government’s commitment to economic information sharing introduced by the Organisation for Economic Cooperation and Development (OECD), through the automatic exchange of information commencing from September 2018.
“What this means is that information can be exchanged between tax administrations on a confidential basis. Hence, this commitment aims to combat Base Erosion Profit Shifting (BEPS) activities on the onset,” she added.
Such transparency will provide tax administrators with valuable and insightful information when conducting risk assessment, potentially with the use of data analytics, to evaluate whether the corporate taxpayers may potentially be engaged in BEPS activities to shift profits away, which would otherwise have been taxed in Malaysia.
“This initiative is a powerful tool to allow the government to see the big picture of multinational operations and conduct more effective risk assessments to protect their fair share of taxes. Enhanced tax audit activities are almost guaranteed to be the way forward,” Chang said
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Print: The Sunday Post