Focus Malaysia recently compiled its list of Bursa Malaysia-listed companies that paid the most taxes in their latest financial years and it was found that the top 50 contributed a total of RM19.76bil.
In Malaysia, companies are required to pay a standard tax rate of 24pc on their locally-derived income. The bulk of the top-five taxpayers paid less than the standard 24pc tax rate despite having paid-up capital way above RM2.5mil. Twenty two of the top 50 companies paid less than the standard rate.
KPMG executive director (tax risk management) Soh Lian Seng acknowledges there has been a significant level of non-compliance among corporates in the past, although it is unclear how that compared with other jurisdictions.
He, however, notes the IRB has been steadily increasing monitoring and curbing efforts on errant corporates.
“Recently the IRB has increased its effort in conducting more tax audits and tax investigations on corporates to monitor higher compliance while trying to clamp down errant corporates. The IRB has been targeting different industry corporate players,” he says.
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