The Capital Statement or Net Worth Method is commonly used by tax authorities to check the accuracy of an individual’s reported income. What does it take to prepare a capital statement that meets the requirement of the tax authorities?
? Using the capital statement method to prove unreported income.
? Type of evidence required in establishing opening assets.
? 7 key elements in a capital statement.
? Non-deductible expenditure / non-taxable receipts.
? Attributing net worth increases to taxable income.
? Case Study – Preparing capital statement that meets the requirement of tax authorities.
Karen Koh Sai Tian has served more than 35 years with the Inland Revenue Board of Malaysia where she has handled Personal Tax, Corporate Tax, Real Property Gains Tax, and Stamp Duty. She has vast experience as a tax auditor, investigator, and trainer at various Branches/ Divisions of IRBM. Her career has included stints as Director of the Investigation Centre in Kluang, Johor, Co-ordination Director at the Putrajaya State Director’s Office as well as Director of Special Division at the Large Taxpayer Branch. Her final posting was as Director of IRBM’s Large Taxpayer Branch. She has also been a regular speaker at various in-house and external events hosted by IRBM as well as an invited speaker at a number of organisations. Karen holds a Bachelor of Accounting from the University Malaya. She is a Chartered Accountant of MIA, Fellow Member of CTIM, Certified Training Professional (ARTDO), Certified Fraud Examiner (ACFE, Austin, Texas), Certified System Investigator (ACSI, Singapore), Certified Financial Planner (FPAM), and a Registered Tax Agent.