Unpaid CP500 Tax Instalments Will Not Result In Travel Restrictions - MOF

KUALA LUMPUR, Nov 11 (Bernama) -- Taxpayers who fail to pay their instalments under the Instalment Payment Notice (CP500) will not face overseas travel restrictions as the payments do not constitute a final tax assessment, the Dewan Rakyat was told today.

Deputy Finance Minister Liew Chin Tong said travel restrictions could only be imposed after taxpayers submitted their Income Tax Return Forms (BNCP), allowing their actual tax liabilities to be determined.

"The actual tax payable will be recalculated based on the submitted tax returns, after deducting any CP500 instalments already paid," he said when replying to a question from Chow Yu Hui (PH-Raub).

Liew further explained that if any tax remained payable after the final calculation based on the submitted tax returns, it would be classified as tax arrears if the taxpayer failed to settle the amount within the stipulated period.

"To avoid disruptions to overseas travel due to unpaid tax arrears, the IRB (Inland Revenue Board) regularly advises taxpayers through various platforms to check their tax arrears and travel restriction status before planning any trips abroad," he said.

Taxpayers can check their tax arrears and travel restriction status through the MyTax portal or the Immigration Department's website, he added.

Responding to a supplementary question from Chow on the justification for imposing travel restrictions on individuals whose tax liabilities had yet to be finalised, Liew said such action was generally taken after six months if the tax arrears remained unpaid and the taxpayer had failed to respond.

-- BERNAMA