The Inland Revenue Board (IRB) announced in April 2022 that Malaysia’s Tax Corporate Governance Framework (TCGF) pilot program would start in June 2022. It is a momentous step forward by the IRB to encourage an open discussion approach and foster transparency between taxpayer and tax authority, a departure from the traditional audit-oriented approach to compliance. The program is voluntary, and it is understood that companies listed on Bursa Malaysia, Government Linked Companies and companies with an annual turnover of more than RM100 million are eligible to volunteer if they are keen.
To undertake this exercise, companies must first develop an internal framework and ensure it is operationally effective. This framework principally should address the chain of command in relation to tax decision making, tax strategy and risk management, operating procedures for tax compliance, internal controls and data integrity. With a solid and practical TCGF, the taxpayer gives the tax authority a greater sense of trust that tax compliance within the organisation is well managed and the risk of non-compliance is low. In turn, this leads to fewer audit activities by the authorities, and both parties can focus on resolving issues preemptively rather than prospectively.
This one-hour session is intended to give boards a quick overview of the latest initiative of IRB and the building blocks of a formidable TCGF from a risk management and stakeholder engagement perspective. It also offers a critical action plan that boards can take away with their management.
Seats are limited to 2 board members per organisation and on a first-come-first-served basis. Kindly register by 3 August 2022 to reserve your seat.
Speaker
