Annual Report 2011 - The Malaysian Institute Of Certified Public ...

President’s Statement33taxationThe Tax Practice Committee serves as a key liaison betweenthe Institute and the Government on taxation matters. TheCommittee makes regular representations to the Governmentand the revenue authorities on behalf of members. TheCommittee also participates in the Government’s consultationprocess on the development, revision and implementation oftax law and regulations.The Institute continues to work in close co-operation with theMalaysian Institute of Accountants (MIA) and the CharteredTax Institute of Malaysia (CTIM) in making submissions to theInland Revenue Board (IRB) concerning practical issuesencountered by members in the application of tax legislation,and the rules and regulations issued by the IRB.During the year, several dialogue sessions were held with theTax Operation Department and the Tax Policy Department ofthe IRB to seek clarification and to arrive at practical solutionsto issues that were raised. The IRB has also formed a workinggroup between the professional bodies and IRB to resolveissues that may arise from time to time. During the year, twomeetings had been held by the Working Group to resolveissues relating to submission of tax return forms and otheroperation matters.The Committee continues to participate in the IRB’sconsultation process relating to the development of PublicRulings, which provide guidance on the interpretation of theDirector General of Inland Revenue in respect of a particularprovision in the tax law, and the policy and procedures thatshould be applied. The Public Rulings serves as a useful guide toboth taxpayers and the IRB officers in the application of thelaw.The Institute, jointly with MIA and CTIM established the JointTax Working Group on Financial Reporting Standards(JTWG-FRS) on February 12, 2009. The Working Groupanalyses and highlights the changes brought about by theFinancial Reporting Standards (FRSs) which have taximplications and proposes to the relevant tax authorities theappropriate tax treatments in respect of the FRSs, whereapplicable.The JTWG-FRS is in the process of reviewing thefollowing FRS to identify the tax implications related tothe implementation of these FRSs:The JTWG-FRS had a few dialogues with the Ministry ofFinance (MOF) and IRB to discuss the tax implicationsarising from the implementation of the following FRSs:StandardTitleStandardTitleFRS 119FRS 136IC 12IC 13IC 15Employee BenefitsImpairment of AssetsService Concession ArrangementsCustomer Loyalty ProgrammesAgreements for the Constructionof Real EstateFRS 5Non-current Assets Held for Saleand Presentation of DiscontinuedOperationsFRS 116FRS 121Property, Plant and EquipmentThe Effects of Changes in ForeignExchange RatesFRS 123FRS 139Borrowing CostsFinancial Instruments:Recognition and MeasurementFRS 140Investment PropertyThe MOF and IRB are in the midst of drafting guidelines on theabove matters.The Committee also represented the Institute at thehalf-yearly meetings of the Customs-Private SectorConsultative Panel. The Institute was invited by the RoyalMalaysian Customs to attend the “Briefing on Customs AppealTribunal”.The Committee is responsible for the publication of the CPATax and Investment Review, which contains annual updates ontax laws and regulations, Government policies and guidelineson investment and incentives, and other pertinent informationon doing business in Malaysia. It also provides a summary ofrecent tax cases and an index of current amendments to theIncome Tax Act and related legislation. The publication wasundertaken with the technical support from six largeaccounting firms.The Committee also assumes the responsibility to oversee thepublication of annual budget commentary, which is undertakenon a joint venture basis by the Institute, MIA and CTIM. A totalof 101,436 copies of the 2012 Budget Commentary and TaxInformation were printed. Apart from the 31,115 copies sentto members of the three Institutes as part of the membershipservice and to the complimentary recipients, a total salevolume of 68,932 was achieved. The success of the project wasthe result of the team work of the three joint-venture partnersand the contributions of the editorial board consisting of morethan 90 members drawn from nine large accounting firms.