About the Video
Following the passing of the Finance Bill 2021 on 15th December 2021, the Inland Revenue Board (LHDN) will no longer have to inform taxpayers when requesting their bank account details from banks for review or investigation, according to the new amendments proposed to Section 106A of the Income Tax Act 1967. Here’s everything you need to know!
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⬇️Sources⬇️
🔴Finance Bill 2021 →Click Here
🔴LHDN Press Release → Click Here
🔴The Vibes →Click Here
🔴TheEdge Markets →Click Here
🔴Focus Malaysia → Click Here
🔴Malaysia Now → Click Here
According to tax experts, Section 106A states that LHDN can now bypass taxpayers in the process of obtaining their bank account information for investigation. This direct access to taxpayers’ bank details differs from existing procedures that require individuals to sign a consent form before banks can divulge such details to authorities.
The new section also notes that “financial institutions shall not disclose to any person that such request was made to the financial institution”. In other words, banks are not allowed to inform taxpayers of such requests once they is made either.
This section grants the power to the director-general of Inland Revenue (DGIR) to call for bank account information for the purpose of making a garnishee order application.
A garnishee proceeding is a process of enforcing a money judgment by the seizure or attachment of debts due to the judgment debtor that forms part of his property available in execution.
The personal and bank account information of taxpayers is still protected by the respective banking secrecy laws, such as the Personal Data Protection Act 2010 (PDPA). However, the PDPA would not apply when Section 106A is enforced.
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Disclaimer: None of the information in this video shall construe financial/tax/legal/accounting advice in any form, it is purely a sharing of my personal experience. In order to make the best decision that suits your own needs, you must conduct your own research and seek the advice of a licensed professional if necessary.
