KUALA LUMPUR, Oct 7 — Putrajaya said today it cannot disclose how much the country’s top 20 billionaires contribute in taxes as it is bound by laws classifying such information as private.
Deputy Finance Minister Datuk Ahmad Maslan, who was responding to Datuk Seri Anwar Ibrahim’s request earlier to reveal the tax contributions of billionaires like Tan Sri Mokhzani Mahathir, told Parliament that Section 138 of the Income Tax Act 1967 prohibits the release of such details.
He said, however, that the tax information of companies linked to these tycoons can be obtained.
"We can get the tax paid by their companies, that's easy, but for the individual taxes, the Inland Revenue Board (IRB) would always take note of increase in income published in the mass media and compare it to their annual income report.
"Actually indirectly, they are also the biggest tax contributors in our country but the IRB is tied to privacy laws for tax information for individuals under Section 138 of the Income Tax Act and the actual tax amount paid cannot be revealed," he said when winding up committee stage debates on the amendment bill to the IRB Act 1995.
When asked if he could reveal the total income tax contributions from the top 20 richest Malaysians, Ahmad said he does not have the figure with him, but could reveal it "if it doesn't contravene any laws".
The bill was passed in Parliament without any amendments.
Earlier today when debating the amendments, Anwar had claimed of pressure from the country’s mega-rich for concessions on the amount of taxes they pay.
“I want to ask among the top 20 billionaires, how much in tax are we getting because we don’t want the rich to be given too much space and flexibility that they can escape paying taxes through loopholes,” he said.
The former finance minister pointed out that billionaires including T. Ananda Krishnan, Tan Sri Dr Teh Hong Piow and former prime minister Tun Dr Mahathir Mohamad's son Mokhzani were able to grow their net worth "in a short period of time".
Adding that there were claims the group also received preferential treatment not available to the average taxpayer, Anwar said the IRB must get more power to resist alleged pressure from the wealthiest in the country.
"It is not easy for normal people to get leeway but I received information where the board was pressured and the billionaires were given flexibility (to pay) in instalments of up to 18 months.
"If this is consistently given to all, then I don't have a problem with it, but of course we can't give exceptions," he said.
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