Thursday 30 July 2009

Something must be wrong with the IRB

It is interesting to note that in spite of frequent letters of dissatisfaction and utter frustration at the IRB's snail like progress of refunding taxes overpaid and over deducted, to the taxpayers, What tax refund? and Speed up refunds the IRB has apparently come up with more work for the employers, and has also shifted the onus of computing accurate monthly deductions to the taxpayers themselves, Tax deductions – a better tomorrow?.. As reported in the column, " Employees can now ask employers to deduct less STD or more STD by submitting Borang PCB/TP1 (1/2009) (less deduction) and Borang PCB/TP2 (1/2009) (more deduction)..." and " For employers, it means increase in compliance costs, a familiar phenomenon in this day and age...." the 2009 Schedulat Tax Deductions (STD) are supposed to provide the mechanism for accurate deductions, and hopefully less clamour for quick refunds, but I can see that this effort is just like "trimming the golf course with a nail cutter", ie, doing more work less effectively.

If the IRB has included in making one of its KPI's as, .." All refunds of taxes of the previous year MUST be completed by September of the following year", we will not need that "fine tuning" that has been proposed and envisaged in the STD 2009. We have shifted to self assessment for about 10 years now, so I am at a loss to understand why it's still so difficult for IRB to pay refunds to the loyal taxpayers, especially those who are retired and depend on such refunds to survive, IN A TIMELY MANNER.. Maybe you should scrap the present computer system, and get a better one.?

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