REQUEST FOR FEEDBACK ON TAX ISSUES REGARDING MBAM’S SUGGESTION FOR PAYMENT ON TAX UPON PHYSICAL COMPLETION OF PROJECT INSTEAD OF UPON ACTUAL FINALISING/CLOSING OF PROJECT FINAL ACCOUNTS
MBAM had a recent meeting with representative of the Direct Tax Division of the Ministry of Finance (MOF). At present, Lembaga Hasil Dalam Negeri (LHDN) interpreted the date of Certificate of Practical Completion (CPC) or Certified Completion Certificate (CCC) as the date of finalising accounts of project.
This is not true as the CPC/CCC only shows the physical completion of a project which is fit for occupation or usage although there are some minor works which will not affect the said project being used/occupied yet to be completed.
Furthermore, the final account for the project is yet to be settled and finalised at this stage since some of the works are not fully measured, completed and accepted. More so when it involves negotiations on variation orders, deduction and contractual claims. As such, MBAM is appealing on the above matter.
MOF has asked for additional input and has requested for a list of MBAM members penalised by LHDN due to underestimation of taxes for the past 5 years. In addition, MOF is also asking for a list of MBAM Members that have overestimated more than the final tax to be paid for the past 5 years. We are also seeking other input and data to support this appeal. Please note that your company may be asked to provide further details if needed.
Kindly complete the survey as per the link below. For enquiries, please contact MBAM General Manager, Mr Lenny Lim at 03-79848636 or email email@example.com.