This document outlines various offences and penalties under the Malaysian Income Tax Act 1967. It describes offenses such as failure to file a tax return, making an incorrect return, willfully evading tax, obstructing tax officers, and failing to comply with record keeping requirements. The penalties for convictions range from fines between RM200 to RM20,000 depending on the offense, and can also include imprisonment terms and payment of unpaid taxes. The Director General is authorized to compound offenses by accepting a monetary payment in lieu of criminal prosecution.

1. OFFENCES AND
PENALTIES

2. 112. FAILURE TO FURNISH RETURN OR
GIVE NOTICE OF CHARGEABILITY.
 112. (1) Any person who makes default in furnishing a return in
accordance with section 77 (1) or 77A (1) or in giving a notice in
accordance with section 77 (3) shall, if he does so without
reasonable excuse, be guilty of an offence and shall, on
conviction, be liable to a fine of not less than two hundred ringgit and
not more than two thousand ringgit or to imprisonment for a term not
exceeding six months or to both.
 (2) In any prosecution under subsection (1) the burden of proving
that a return has been made or a notice given shall be upon the
accused person.
(2A) Where a person has been convicted of an offence under
subsection (1), the court may make a further order that the person shall
comply with the relevant provisions of this Act under which the offence
has been committed within thirty days, or such other period as the court
deems fit, from the date the order is made.

3.  (3) Where in relation to a year of assessment a person makes
default in furnishing a return in accordance with section 77 (1)
or 77A (1) or in giving a notice in accordance with section
77(3) and no prosecution under subsection (1) has been
instituted in relation to that default-
i. (a) the Director General may require that person to pay a
penalty equal to treble the amount of the tax which, before
any set-off, repayment or relief under this Act, is payable for
that year; and
ii. (b) if that person pays that penalty (or, where the penalty is
abated or remitted under section 124(3), so much, if any, of
the penalty as has not been abated or remitted), he shall
not be liable to be charged on the same facts with an
offence under subsection (1).
 (4) The Director General may require any person to pay an
additional amount of penalty in accordance with subsection
(3) in respect of any additional tax which is payable by that
person for a year of assessment.

4. 113. INCORRECT RETURNS.
 113. (1) Any person who-
(a) makes an incorrect return by omitting or understating any
income of which he is required by this Act to make a return
on behalf of himself or another person; or
(b) gives any incorrect information in relation to any matter
affecting his own chargeability to tax or the chargeability to
tax of any other person, shall, unless he satisfies the court
that the incorrect return or incorrect information was made
or given in good faith, be guilty of an offence and shall, on
conviction, be liable to a fine of not less than one thousand
ringgit and not more than ten thousand ringgit and shall pay
a special penalty of double the amount of tax which has
been undercharged in consequence of the incorrect return
or incorrect information or which would have been
undercharged if the return or information had been accepted
as correct.

5.  2) Where a person,
(a) makes an incorrect return by omitting or understating any income
of which he is required by this Act to make a return on behalf of
himself or another person; or
(b) gives any incorrect information in relation or any matter affecting
his own chargeability to tax or the chargeability to tax of any other
person, then, if no prosecution under subsection (1) has been
instituted in respect of the incorrect return or incorrect
information, the Director General may require that person to pay a
penalty equal to the amount of tax which has been undercharged
in consequence of the incorrect return or incorrect information or
which would have been undercharged if the return or information
had been accepted as correct; and, if that person pays that penalty
(or, where the penalty is abated or remitted under section
124(3), so much, if any, of the penalty as has not been abated or
remitted), he shall not be liable to be charged on the same facts
with an offence under subsection (1).

6. 114. WILFUL EVASION.
 114. (1) Any person who wilfully and with intent to evade or assist any
other person to evade tax-
(a) omits from a return made under this Act any income which should be
included;
(b) makes a false statement or entry in a return made under this Act;
(c) gives a false answer (orally or in writing) to a question asked or request for
information made in pursuance of this Act;
(d) prepares or maintains or authorizes the preparation or maintenance of false
books of account or other false records;
(e) falsifies or authorizes the falsification of books of account or other records;
or
(f) makes use or authorizes the use of any fraud, art or contrivance, shall be
guilty of an offence and shall, on conviction, be liable to a fine of not less than
one thousand ringgit and not more than twenty thousand ringgit or to
imprisonment for a term not exceeding three years or to both, and shall pay a
special penalty of treble the amount of tax which has been undercharged in
consequence of the offence or which would have been undercharged
if the offence had not been detected.

7.  (1A) Any person who assists in, or advises with respect to, the
preparation of any return where the return results in an
understatement of the liability for tax of another person shall, unless
he satisfies the court that the assistance or advice was given with
reasonable care, be guilty to an offence and shall, on conviction, be
liable to a fine of not less than two thousand ringgit and not more that
twenty thousand ringgit or to imprisonment for a term not exceeding
three years or to both.
 (2) Where in any proceedings under this section it is proved that a
false statement or false entry (whether by omission or otherwise) has
been made in a return furnished under this Act by or on behalf of any
person or in any books of account or other records maintained by or
on behalf of any person, that person shall be presumed until the
contrary is proved to have made that false statement or entry with
intent to evade tax.

8. 115. LEAVING MALAYSIA WITHOUT
PAYMENT OF TAX.
 (1) Any person who, knowing that a certificate has been issued in
respect of him under section 104, voluntarily leaves or attempts to
leave Malaysia without paying all the tax, sums and debts specified in
the certificate or furnishing security to the satisfaction of the Director
General for the payment thereof shall be guilty of an offence and
shall, on conviction, be liable to a fine of not less than two hundred
ringgit and not more than two thousand ringgit or to imprisonment for
a term not exceeding six months or to both.
 (2) A police officer or immigration officer may arrest without warrant
any person whom he reasonably suspects to be committing or about
to commit an offence under this section.
 (3) In this section "immigration officer" has the same meaning as in
section 104.

9. 116. OBSTRUCTION OF OFFICERS.
 116. Any person who-
(a) obstructs or refuses to permit the entry of the Director General or an
authorized officer into any land, building or place in pursuance of
section 80;
(b) obstructs the Director General or an authorized officer in the
exercise of his functions under this Act;
(c) refuses to produce any book or other document in his custody or
under his control on being required to do so by the Director General or
an authorized officer for the purposes of this Act ;
(d) fails to provide reasonable facilities or assistance or both to the
Director General or an authorized officer in the exercise of his powers
under this Act ; or
(e) refuses to answer any question relating to any of those purposes
lawfully asked of him by the Director General or an authorized
officer, shall be guilty of an offence and shall, on conviction, be liable to
a fine of not less than one thousand ringgit and not more than ten
thousand ringgit or to imprisonment for a term not exceeding one year

10. 117. BREACH OF CONFIDENCE.
 117. (1) Any classified person who in contravention of
section 138-
(a) communicates classified material to another person; or
(b) allows another person to have access to classified
material,shall be guilty of an offence and shall, on
conviction, be liable to a fine not exceeding four thousand
ringgit or to imprisonment for a term not exceeding one year
or to both.
 (2) In this section "classified material" and
"classified person" have the same meaning as in
section 138.

11. 118. OFFENCES BY OFFICIALS.
 118. Any person having an official function under this Act
who-
(a) otherwise than in good faith, demands from any person an
amount in excess of the tax or penalties due under this Act;
(b) withholds for his own use or otherwise any portion of any
such tax or penalty collected or received by him;
(c) otherwise than in good faith, makes a false report or return
(orally or in writing) of the amount of any such tax or penalty
collected or received by him;
(d) defrauds any person, embezzles any money or otherwise
uses his position to deal wrongfully with the Director General or
any other person,shall be guilty of an offence and shall, on
conviction, be liable to a fine not exceeding twenty thousand
ringgit or to imprisonment for a term not exceeding three years
or to both.

12. 119 . UNAUTHORISED COLLECTION.
 119. Any person who, not being authorized under this Act to
do so, collects or attempts to collect tax or a penalty under this
Act shall be guilty of an offence and shall, on conviction, be
liable to a fine not exceeding twenty thousand ringgit or to
imprisonment for a term not exceeding three years or to both.
History
Section 119 amended by Act 513 of 1994 s24, by
substituting for the word "ten" the word "twenty", in
force from 25 February 1994.

13. 119A. FAILURE TO KEEP RECORDS.
 119A. Any person who without reasonable excuse-
(a) fails to comply with an order or a notice given under section
82(3) or (5); or
(b) contravenes subsection 82(1), (1A), (6), (7) or(8), shall be
guilty of an offence and shall, on conviction, be liable to a fine of
not less than three hundred ringgit and not more than ten
thousand ringgit or to imprisonment for a term not exceeding one
year or to both.

14. 120. OTHER OFFENCES.
 120. (1) Any person who without reasonable excuse-
(a) fails to comply with a notice given under section78, 79, 80
(3), 81, 84 (1), 85 or 87;
(b) fails to furnish a return in accordance with subsection 83(1) or to
prepare and render a statement in accordance with subsection
83(1A) or 83A(1);
(c) fails to give the notice required by section 83 (2),(3) or (4);
(d) contravenes section 84 (2), 86 (1), 89 or 153 (1);
(e) fails to comply with a direction given under section 83 (5) or 107; or
(f) fails to furnish an estimate in accordance with section 107C
(2), 107C (3) or 107C (4)(a),
 (2) Where a person has been convicted of an offence under
subsection (1), the court may take furtherorder that the person shall
comply with the relevant provisions of this Act under which the
offence has been committed within thirty days, or such other period
as the court deem fir, from the date the order is made.

15. 124. POWER TO COMPOUND OFFENCES
AND ABATE OR REMIT PENALTIES.
 124. (1) Where any person has committed any offence under
this Act, the Director General may at any time before
conviction compound the offence and order that person to pay
such sum of money, not exceeding the amount or of the
maximum fine and any special penalty to which that person
would have been liable if he had been convicted of the
offence, as he thinks fit:
Provided that the Director General shall not exercise his powers
under this section unless that person in writing admits that he
has committed the offence and requests the Director General to
deal with he offence under this section.
 (2) Where under this section the Director General
compounds an offence committed by any person and makes
an order accordingly-
(a) the order shall be made in writing under the hand of the
Director General and there shall be attached to it the written
admission and request referred to in subsection (1);

16. (b) the order shall specify-
(i) the offence committed;
(ii) The sum of money ordered to be paid; and
(iii) the date on which payment is to be made or the dates on which
instalments of that sum are to be paid, as the case may be,
(c) a copy of the order shall be given, if he so requests, to the person
who committed the offence;
(d) that person shall not be liable to any prosecution or, as the case
may be, any further prosecution in respect of the offence and, if any
such prosecution or further prosecution is brought, it shall be a good
defence for that person to prove that the offence has been
compounded under this section;
(e) the order shall be final and shall not be subject to any appeal;
(f) the order may be enforced in the same way as the judgment of a
subordinate court (as defined in Schedule 5) for the payment of the
amount stated in the order or the amount outstanding, as the case may
be; and
(g) the order shall, on production to any court, be treated as proof of the
commission of the offence by that person and of the other matters set
out therein.
 (3) The Director General may abate or remit any penalty
imposed under this Act except a penalty imposed on conviction.

17. Offences, Fines and Penalties
Type Of Offences
Provisions Under ITA 1967
 Amount Of Fine (RM)
 Failure (without reasonable excuse) to furnish an
Income Tax Return Form.
 112(1)
 200 to 2,000 / imprisonment / both
 Failure (without reasonable excuse) to give notice of
chargeability to tax.
 112(1)
 200 to 2,000 / imprisonment / both
 Make an incorrect tax return by omitting or understating
any income.

18.  113(1)(a)
 1,000 to 10,000 and 200% of tax undercharged
 Give any incorrect information in matters affecting the tax
liability of a taxpayer or any other person.
 113(1)(b)
 1,000 to 10,000 and 200% of tax undercharged
 Wilfully and with intent to evade or assist any other person to
evade tax.
 114(1)
 1,000 to 20,000 / imprisonment / both and 300% of tax
undercharged
 Assist or advise (without reasonable care) others to under
declare their income.
 114(1A)
 2,000 to 20,000 /imprisonment / both
 Attempt to leave the country without payment of tax.
 115(1)
 200 to 2,000 /imprisonment / both
 Obstruct any authorized officer of IRBM in carrying out his
duties.

19.  116
 1,000 to 10,000 / imprisonment / both
 Fails (without reasonable excuse) to comply with an order to
keep proper records and documentation.
 119A
 300 to 10,000 / imprisonment / both
 Fails (without reasonable excuse) to comply with a notice
asking for certain information as required by IRBM.
 120(1)
 200 to 2,000 /imprisonment / both
 Fails (without reasonable excuse) to give notice on changes
of address within 3 months.
 120(1)
 200 to 2,000 /imprisonment / both

Payment of Income Tax
 Type of Offences
 Source of Income
 Provisions Under ITA 1967

20.  Penalties
 Pay taxes after 30th April.
Non-Business
 103(3)
 a. 10% increment from the tax payable, and
b. Additional 5% increment on the balance of (a) if payment is not
made after 60 days from the final datePay taxes after 30th June.
Business
 103(4)

Payment of Estimated Income Tax
(For Business Income)
 Type of Offences
 Provisions Under ITA 1967
 Penalties
 Pay instalments after 30 days of the date set.
107B(3)
 10% on instalment due Actual tax 30% higher than the revised
estimate of tax.107B(4)
 10% of the difference in actual tax balances and estimated tax
made

21. THANK YOU