Examples for calculating taxes
Deep, Deep Dive
Tax Offences and Penalties
We often hear of large fines for breaking tax laws, even if by accident. Let’s try to understand these offences better with some questions you may have.
- What happens if you don’t file your taxes?
If there is no legal action taken against you, you will have to pay a penalty of up to three times the tax payable for the year. If you face legal action, you could be fined from RM200 up to RM20,000, or even jailed for up to 6 months.
- What happens if you file and pay your taxes after the due date?
For late payment, a 10% penalty will be charged on your tax payable amount.
- What happens if you register to file your taxes after the deadline?
This will be considered late filing and the penalties will be the same as above.
- What happens if you file your taxes wrongly?
If you do not face legal action, you will have to pay a penalty on the incorrect tax return. However, if you face legal action, you could be fined from RM1,000 to RM10,000 and get a penalty. This could very easily happen to us by accidentally overstating our tax reliefs or understating your income. So, make sure you can show proof of all the reliefs you claim or you’ll risk getting a fine!
For the full list of offences and penalties, please click here.
So, do remember to file your taxes, and make sure you meet the deadline! There is a chance you won’t have to pay any taxes for the year if you use your tax reliefs and rebates when you file your taxes. Now that you’ve completed Tax Filing 101, you can move on to our Guide on Step-by-Step Tax Filing to help you understand the process.