Employer Tax Audit Framework: A Comprehensive Guide to Duties and Responsibilities
IRB has released the Employer Tax Audit Framework recently which outline the duty & responsibility of employers. Are you ready for "payroll" tax from IRB? KTP (Audit, Tax, Advisory) is an approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients.
Scope and Objective of the Framework
The Framework covers the following areas of employer compliance and legal procedures:
- The legal provisions under the Income Tax Act (ITA) that apply to employer audits;
- The types of employer audit i.e. field audit under S107 of the ITA (Monthly Tax Deductions) and desk audit under S83 of the ITA;
- The objective of employer audit and selection of employer audit cases;
- Years of remuneration covered and implementation of employer audit;
- Rights and responsibilities of audit officers, employers and tax agents;
- Confidentiality of information, offences and power to compound;
- Complaints and compound payment procedures.
Core Employer Obligations
The Framework outline the duty & responsibility of employers from:
- Form E
- Form EA
- Notification of new employee
- Notification of resignee
- MTD/PCB
- & etc
Key Summaries and Historical Updates
To better understand these obligations, review these key summaries from our past blogs relating to the employer duty & responsibility:
- IRBM Newsletter July 2021: (23.07.21)
- E Filing Form E: (15.03.21)
- Form E Deadline: 31/03/2021 (12.03.21)
- What is e-PCB? e-Data PCB? e-CP39: (3.3.21)
- When to declare bonus into Form EA?: (16.2.21)
- IRB tax audit on employers on CP21, CP22 & CP22A: (1.2.21)
- Employer Tax Obligation under Income Tax Act - Resignation & New Employee: (12.1.21)
Compliance Takeaways for Employers
Stay updated on the lasted tax ruling and requirement on the employer’s duty and responsibility. It is recommended to get connected on regular basis with your payroll software vendor on any changes in the regulation. Furthermore, ensure a regular review of your employment handbook/handbook on any changes in the employer regulation.
