Tuesday, November 11, 2008

Inland Revenue Department (IRD)

A week ago I received a phone call from an officer from IRD informing me that they would be coming to the office to audit the company payroll for last year and this year up to last month.


So from then onwards I had been busy making sure everything single piece of payroll was in order, in case any that did not have signature. I found some and told the respective persons to sign them.


Yesterday the officer called up to say that they would be coming in the afternoon instead of the morning as stated in the letter since they had a meeting in the morning.


Three officers (one woman and two men, all Malays) came at 2.45p.m. The lady was the one who asked all the questions while the men were just sitting there like ‘decoration’.


The normal practice of working out staff monthly income tax is to deduct the Employee’s Provident Fund (EPF) amount from the gross salary before looking at the Income Tax Table. But my company’s practice is using the gross amount without deducting the EPF amount.


Therefore each month each individual employee is paying more than the required amount of tax. We all prefer it this way because that means we would not have to fork out as much by the end of the year when we lodge in the income tax form.


The officers were happy to find out we practice this way. They only stayed for half an hour and had to go to two other places before the end of the working day.


I was extremely relieved after they left. I did not do anything wrong. Just having them around gave me the jitter.

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