Foong Speaks Her Mind

WTF.

What the blardy hell is a cash rebate if it is taxable?

I don’t know, I think there is seriously something wrong with the Inland Revenue Board (IRB) CEO to even think that the RM625 could possibly be taxable. (Read the news from Star Online below)

As far as I know, only INCOME that we get from services rendered and goods sold are taxable. So, will someone please explain to me how this RM625 cash rebate had become an income? I am not an accountant so maybe I am too stupid and do not know that cash rebate and income are the same thing and that both are taxable.

Hmmm…oh yeah, I see the light now…

Since all of us have been royally arsed and farked upside down due to the petrol price hike by the BN government and then given this measly RM625 cash rebate as ‘compensation’…I guess that accounts for ’services rendered’ huh?

IRB to decide whether RM625 rebate is taxable

IPOH: The Government has yet to decide whether to tax the RM625 rebate a year given to owners of vehicles with engine capacity of up to 2,500cc.

Internal Revenue Board (IRB) chief executive officer Datuk Hasmah Abdullah said the board would discuss the matter with the Treasury.

Noting that the RM625 may push certain “borderline” taxpayers into a higher taxable income bracket, Hasmah said:

“To avoid confusion, we will come out with a ruling before next year’s filing of returns deadline.”

In June, the Government announced the rebate payout to private vehicle owners.For motorcycle owners with engine capacity of up to 250cc, the rebate is RM150.

Hasmah pointed out that the IRB would have to study Section 4 of the Income Tax Act, 1967, to determine if the car owners would be taxed.

Income derived out of services rendered and goods sold was taxable, she said yesterday after giving away prizes to winners of the state-level IRB’s public speaking competition for Form Six students here.

Technically, she said, the rebate did not fall into the definition of income and it was applied across the board.

At face value, it did not seem to relate to goods sold or services rendered, she said.

As for the lower income group, Hasmah said they would definitely not be affected, adding that the objective of the rebate was to relieve the burden on this group.

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This entry was posted on Thursday, July 10th, 2008 at 5:10 pm and is filed under Current Events, Sarky Bitching.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.