I received a tax assessment by LHDN, what should i do?
This is the common concern from taxpayer; every time when they receive the tax assessment, what should they do? do they pay the taxes? What if they do not agree with the taxes and penalties imposed?
The question is how do they appeal?
Tax Appeal against LHDN tax assessment
We need to understand that LHDN will issue a Form J (notice of assessment) for each year of assessment. Followed by a Form JA (notice of additional assessment) for each year of assessment.
Under section 99 of the ITA 1967, the taxpayer has to file an appeal to the LHDN within 30 days from the date of Form J/JA received.
The taxpayer has to appeal and adduce evidence before the Special Commissioner of Income Tax Tribunal (SCIT).Witnesses and documents have to be produced.
In Ketua Pengarah Hasil Dalam Negeri v Alcatel-Lucent Malaysia Sdn Bhd [2017] AMTC 1, the Federal Court had held that:
“If the taxpayer is not satisfied with the assessment, the taxpayer has to first exercise its right to appeal under section 99 of the ITA 1967”.
The 30 days Rules of Appeal
In Kerajaan Malaysia v Amalan Tepat Sdn Bhd [2009] AMTC 285, it was held that the statement in the notice of assessment amounted to a sufficient notice that the company has to lodge its appeal through SCIT within 30 days from the date of the notice of assessment.
The taxpayer cannot says that they are not aware of the right to appeal as it is stated within the tax appeal form.
Burden of Proof
The taxpayer being the appeal party, has to prove that the assessment issued by LHDN is wrong. It is the taxpayer duty to provide all the necessary documents and witnesses to prove its case.
Conclusion
During the SCIT meeting, a taxpayer should be represented by an advocate and solicitor (lawyer) as they are able to present the fact and law. The lawyer can be assisted by the company/tax payer accountant and/or tax agent.
