Towards Readiness for Employers and Payroll Audit

INTRODUCTION

IRB has intensified tax audit on employer’s tax responsibilities to ensure they are being adhered to owing to stringent tax laws. These tax obligations are includes notifying the IRB on employee’s commencement and cessation, compliance with Monthly Tax Deductions (MTD), filing of employer’s tax return, preparation of Form EA, employee’s share scheme, etc.

Employers must be mindful of the amendments in tax rules while carrying out the tax obligations. They need to understand the types of information required, audit focus area, and potential risk areas to mitigate Employer’s and Payroll Audit by the IRB

COURSE OUTLINE

1. Overview of Employer Responsibilities

I. Who is considered an employer?
II. What are the employer’s responsibilities?
III. Offences by Employer
IV. List of statutory forms to be completed by an employer pertaining to: –

• Notification of new employee

• Cessation of employee

• Employees leaving Malaysia and Employer’s duty

• Forms E and CP8D

• Form EA and Form CP58

• Online Delivery Service

• Does the implementation of e-invoicing need to modify the company’s processes pertaining: –

     ► to the employee’s remuneration, reimbursement of expenses incurred by the employee on behalf of the employer

     ► employee’s perquisites and benefits-in-kind

2. Points to take note and consequences for non-compliance

I. The Employer Tax Audit Framework

• Common employer’s tax issues

• Good practices in assisting employer to prepare for payroll audit

• Common audit findings on payroll audit

• Challenges faced by ‘deemed employer’

• Special payroll considerations for short-term assignments?

3. Updates on of employment income reporting

PROFILE(s)

Yong Mei Sim has served over 35 years in the Inland Revenue Board of Malaysia (“IRB”) and held the last position as the Principal Assistant Director of the Penang branch, before retiring in 2016. She obtained a Bachelor of Science Degree majoring in Economics with a Second Class Upper from the University Science of Malaysia in Penang. She was later awarded the prestigious JPA scholarship to pursue and successfully completed her Master’s of Science in Taxation from the Golden Gate University in San Francisco, USA. During her tenure in office, she has been, inter alia, an audit manager in charge of the Payroll Taxes Unit, Field Audit and Desk Audit Unit. She had actively assisted the Federal Councils of the IRB in handling tax litigation cases. Among the landmark tax litigation cases which she was directly involved are ICTSB vs DGIR, PSSB vs DGIR and Marigold (M) Sdn Bhd vs DGIR. With her vast knowledge and experience in the field of Malaysian taxation, she has been invited by the IRB and other professional bodies to speak extensively around the country and to share her valuable experience and expertise on income tax updates and all other relevant taxation matters.