Annual Report 2014 Bi

2015 Publication
© Inland Revenue Board of Malaysia (IRBM) 2015
All Rights Reserved. Articles, illustrations and contents of

this book may not be re-published, in whole or in part, in
any form and by any means whatsoever, either electronic,
photocopying, mechanical, recording or any other
means, without the express written consent of the Chief
Executive Officer / Director General of Inland Revenue,
Inland Revenue Board of Malaysia.
Malaysian National Library

ISSN 1675 - 1612
Managing Tax Ecosystem For Sustainable Growth
CONTENT:
Chairman’s Report 4
CEO’s Speech 8
CORPORATE CULTURE
• Vision, Mission, Objective, Quality Policy, Slogan, Service Motto 12
• Functions of IRBM 13
• IRBM’s Responsibilities 15
GOVERNANCE
• Board Members 18
• Top Management 20
• Organisation Chart 21
• Corporate Governance Statement 22

CORPORATE PERFORMANCE
• Revenue Collections 28
• Tax Management Efficiency 29
• Tax Compliance
- Tax Audit 30
- Transfer Pricing Audit 31
- Monthly Tax Deductions (MTD) Audit 32
- Hasil Friendly Visit 32
• Enforcement and Prosecution
- Investigation Programme 33
- Ban from Leaving the Country 33
- Civil Suit Actions 34
• Collections
- Monthly Tax Deduction (MTD) 34
- instalment Scheme 35
- Arrears Payment Management 36
- Withholding Tax 36
• Customer Service
- Refunds 36
- Customer Service Centres (CSCs) 37
- Revenue Service Centres (RSCs) 38
- Tax Payment Facilities 39
- One-Stop-Counters 39
• Tax Education Programme
- Tax Education Activities 40
- Business Support Services 40
- Tax Relation Officers (TRO) 41
- HASiL4U Programme 41
- Tax Seminars 42
- Visits to IRBM 43
- Kidzania Tax Office 43
- Announcement and Publicity Through Media 44
- IRBM Publications 45
• Electronic Services 46
• Widening of Tax Base 48
• Taxpayers’ Rights 48
• Corporate Social Responsibilities
- Stakeholders 50
- Education 50
- Environment 50
- Community 52
INTERNATIONAL NETWORKING
• Double Taxation Avoidance Agreement (DTAA) 56
ORGANISATION DEVELOPMENT
• Human Resource Development
- Internal Training Programme 60
- Training Achievement 61
- International Training Programme 61
HIGH PERFORMANCE WORKING CULTURE

• Implementation of IRBM’s 2014 KPIs 66
• Client Charter 68
AWARDS & ACHIEVEMENTS

• Lists of Awards & Achievements 72
NATIONAL HIGHER EDUCATION FUND CORPORATION AGENT (PTPTN)

• PTPTN Collection’s Performance 78
1MALAYSIA PEOPLE’S AID (BR1M) 80
IRBM DIRECTORY 84
HASIL DIARY 92
FINANCIAL STATEMENT 106
FINANCIAL STATEMENT ANALYSIS 144

CHAIRMAN’S
REPORT
Assalamualaikum W.B.T, greetings,
Once again, a ground breaking achievement for Inland Revenue Board of

Malaysia (IRBM) for has successfully collected direct taxes of RM133.700
billion with 3.70% increase compared to 2013. This momentum of success
is valuable since IRBM has continuously maintained great achievement
of tax collection in three (3) digits since 2011, as well as managed to
get wide recognitions throughout 2014. This accomplishment was in line
with IRBM’s theme “Managing Tax Ecosystem for Sustainable Growth”. I
couldn’t thank enough to the management and Hasilian for their deepest
commitments and determinations in fulfilling the responsibility as a tax
administrator, entrusted by the people. Their commitments, determinations
and perseverance as well the level of productivity of those involved are
highly commendable.
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I have high expectations towards IRBM in maintaining this excellence momentum and to
achieve 2015 targets set by the government despite of the environmental changes which
will have a direct impact to the revenue collection. Hence, to ensure the outstanding
achievement performance from time to time is well maintained, IRBM need to be wise in
dealing with any problems in future and take bold steps by changing approaches and
ways to ensure that all space, opportunities and potentials will be utilised to maximise tax
collections.
In order to create continuous progress, IRBM has established five (5) main objective targets
as follows:-
1. Collect the appropriate amount of tax in action closed at 29.59% compared to

a fair manner. the projected target of 22.53% from
the total active files. Individual active
a) Tax Collection – IRBM has successfully files accounted for 27.73% exceeding
collected government’s direct tax of the indicator mark by 7.73% while
RM133.700 billion in 2014 with an increase employer MTD files accounted for
of 3.70% compared to 2013. 15.34% compared to the benchmark
11% from total active files
b)
Accounts Receivable – As of
December 31st 2014, a total of 692,253 b) Investigation – Cases resolved by the
tax arrears cases were resolved. The investigation activated totaled 689
achievement of reduction in tax arrears cases, compared to the targeted KPI of
cases has reduced the balance of 554 cases.
account receivables by 70.97% involving
an amount of RM5.937 billion. c) Refund – 99.85% refund claims were
settled against the estimated 94% from
c) Cost Efficiency Collection – With received applications.
the increase in tax collection, IRBM has
rightfully improved the efficiency of its tax 3. Widening tax base.
collection cost to RM 1.03, not exceeding
the stipulated RM 1.14 per RM100.00 of a) All types of Files – An increase of 5.12%
tax collected. registered files based on the number of
active files compared to 3.02% targets
2. Instill the trust of public on justice and set.
supremacy of tax administration system.
4. Modernise system and work procedure
a) a) Audit (Field and Desk Audit) – Auditing in line with current requirements.
of company files C, CS, TA, TC and TR
have resulted in 17.37% cases being a) IRBM electronic service – 3,300,078 of
taken action compared to the projected the received return forms compared to
12% from the total active files. Individual the targeted KPI of 2,800,000.
files OG, D, TP, F, FA and J that was taken
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201201 5
government’s program in an effort to meet
5. Produce competent, professional the expectations of those in the low income
human capital with integrity and group.
dedication.
Starting 2015, IRBM will undergo a change
a) Training – IRBM has successfully carried of status to Self-Financing agency. This
out 243 (87.7%) courses as planned. means that IRBM will begin the process of
transition in stages to a full autonomous
b) Competency of officers and staff – management organisations will also be
79.34% IRBM officers have achieved 56 changed by giving more emphasis to lean
hours of training. management concept. Thus, IRBM will no
longer follow the old beats in order remain
Next, in order to achieve the target of as a world-class tax administrator.
RM142 billion in 2015, IRBM need to put
more focus on the following: Finally, as the Chairman of Board, I once
again, express my deepest appreciation
i. Ensure the level of ‘visibility’ enforcement to the management and Hasilian for their
activities are at the highest level. commitments throughout 2014. Indeed, I
truly appreciate the contributions, support
ii. Enhance the quality of audit, and efforts of Hasilian in glorious success as
investigation, settlement action well as excellent in various aspects including
collection and the quality of the decision sports, arts and innovation. To all Hasilian,
of the directors. ‘You Are the Unsung Heroes of Malaysia’s
Development’. Congratulations and well
done. Not to forget, a sincere thanks to
We are well aware that the government our Board Members for their views, opinions
has confidence on the ability of IRBM as and services for the organisation’s benefits.
the implementing agency for 1Malaysia Let us strive harder with sincerity to fulfill the
People’s Aid Programme (BR1M), which is responsibilities entrusted. Hopefully 2015 will
led by the Ministry of Finance (MoF). This is once again break the history for highest
proven when IRBM was given the mandate direct tax collections by IRBM.
to continue administering BR1M since it was
first introduced in 2012 until BR1M 3.0 where Thank you,
the implementation of the third year was
announced by the Prime Minister in the
budget speech (2014) on October 25th 2013.
BR1M registration begian on December
23rd 2013 to January 31st 2014. The appeal
period on the other hand, commencing
from April 1st 2014 and ended on June 30th
2014. A total of 6,966,182 or 86% of 8.1 million TAN SRI DR. MOHD IRWAN SERIGAR
applications received are eligible for BR1M. ABDULLAH
Registration activities and the processes of Chairman 
BR1M are indeed contrast to IRBM’s core Board of Directors
business, which is the nation’s direct tax Inland Revenue Board of Malaysia
systems administrator. However, in this case,
IRBM has successfully implemented the
6 Annual Report 2014

Annual Report 2014 7
CEO’s SPEECH
Assalamualaikum W.B.T, greetings,
Alhamdulillah, grateful to Allah SWT to have the opportunity to lead this

beloved organisation, support the mandate and implement the trust
given by the government and the public. 2014, the fourth year (4) of
Inland Revenue Board of Malaysia’s (IRBM) sustainability towards greater
achievements. This is proven when IRBM has successfully collected
RM133.700 billion direct tax or 3.70% increase compared to 2013, and thus
making it the highest direct tax collection in our nation’s history.
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IRBM through the annual theme of apart from the success of maintaining the
“Managing Tax Ecosystem for Sustainable organisation’s name in the history for the
Growth” has managed to move the whole highest amount of direct tax collection in
system to function efficiently and effectively the country. Thank you Hasilian. You are the
in order to realize the dream. IRBM is willing nation’s hero.
to take up challenges to increase the tax
collection consistently even facing up with Finally, continued success can never be
a challenging economic environment. IRBM guarantee, but instead a challenge to keep
will continue to move forward and drive the momentum of excellence. IRBM will
performance to a higher level. forge ahead with its vision as a world class
tax administrator. Whatever the challenges
However, as a government agency and ahead, nothing is impossible to deal with.
the backbone of the Federal Government’s ‘Nothing Is Impossible And Impossible Is
biggest source of generating revenue, IRBM Nothing ‘.
should be alert to challenges that require
the strength to cope with maturity and Thank you.
wisdom. Therefore, IRBM must be out of the
comfort zone and willing to take bold steps
to do what is necessary to ensure impressive
collection will continue to be achieved in
the future.
KOLONEL (K) TAN SRI DATUK WIRA DR.
In this context, IRBM need to follow all HJ. MOHD SHUKOR HJ. MAHFAR
developments closely, in the current world Chief Executive Officer/
economic scenario and expectations in the
Director General of Inland Revenue
future. This factor is closely linked to how
government should respond efficiently and Inland Revenue Board of Malaysia
effectively, if the issue of threat affects the
stability of the national economy.
Threats in the world economic environment

will make all countries to perform various
action plans and strategic planning, in
order to develop their countries, so as not to
get caught and become the victim of this
open market competition.
Hence, IRBM need to enhance various

strategies, initiatives and changes
constantly, which has cumulatively proven
in the success of the total tax collection,
either internally or externally. I believe,
with a strong sense of unity and belonging
among Hasilian, IRBM is able to stand firm
and remain at the pinnacle of success.
The fact is, there is no more precious,

valuable and meaningful, for all hard work,
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201201 9
CORPORATE CULTURE
Vision
Leading Tax Administrator
Mission
Providing quality taxation services and integrity
towards a higher level of voluntary compliance
Objective
To implement an effective, fair and thorough tax
management system
Quality Policy
With a foundation based on integrity, we are committed
to provide the best service to the customers
Slogan
Together we develop the nation
Service Motto
Best service for the customers

FUNCTIONS OF IRBM:
1
To act as a government agent and to provide services in
administration, assessment, collection and enforcement of
income tax. Petroleum income tax, real property gains tax,
inheritance duty, stamp duty and other taxes agreed upon
between the government and the Board.
2
To advise the government on matters relating to taxation and
cooperate with ministry and statutory bodies regarding such
matters.
3
To participate in meetings, discussion and agreements pertaining
to domestic or international taxation.
4
To become collection agents for and on behalf of any statutory
body to recover loans payable to it under any written law.
5
To diligently carry out any other functions given to IRBM under
any other written law.

IRBM’s RESPONSIBILITIES
The IRBM is responsible for the administration of the following laws:
• Income Tax Act 1967

• Real Property Gains Tax Act 1976
• Promotion of Investments Act 1986
• Stamp Act 1949
• Petroleum (Income Tax) Act 1967
• Labuan Business Activity Act 1990
The IRBM is required to adhere to all the Double Taxation Avoidence Agreements (DTAA)
signed by the government of Malaysia with other countries. In addition, IRBM is also required
to comply with related and relevant legislations to IRBM’s administration:
a. Federal Constitution 1957

b. Interpretation Act 1948 and 1967
c. Limitation Act 1853
d. Courts of Judicature Act 1964
e. Companies Act 1965
f. Bankruptcy 1967
g. National Land Code 1965
h. Criminal Procedure Code (Act 593)
i. Penal Code (Act 574)
j. Company Winding Up Rules 1965
k. Rules of Court 2012
IRBM still continue to administer several repealed legislations to resolve outstanding cases
such:
a. Estate Duty Enactment 1941

b. Share (Land-based Companies) Transfer Act 1984 (Act 310)

Inland Revenue Board of Malaysia
GOVERNANCE
BOARD OF DIRECTORS:
TAN SRI DR. MOHD IRWAN
SERIGAR ABDULLAH
Secretary General of Treasury
Treasury Malaysia
DATUK WAN SELAMAH
TAN SRI MOHAMAD ZABIDI WAN SULAIMAN
ZAINAL Accountant General of Malaysia
Director General of Civil Service Malaysia Accountant General’s Department
Civil Service Department
The Board of Directors of IRBM comprises of the following members:
a. Secretary General of Treasury cum IRBM Chairman

b. Attorney General or a representative
c. Director General of Public Service or a representative
d. Two(2) other persons from the government sector, appointed by the Finance Minister; and
e. Two (2) other persons from the private sector, appointed by the Finance Minister

DATUK HAJI SHUIB MD. YUSOP
Private Consultant
DATO’ SITI HALIMAH ISMAIL
Secretary of Tax Analysis Division
Ministry of Finance
ENCIK FADZLI ABDUL WAHIT

CIK JUNAIDAH HJ. ABDUL RAHMAN Private Consultant
Commissioner of Law Revision and Law Reform
Law Revision and Law Reform Division

TOP MANAGEMENT
KOLONEL (K) TAN SRI DATUK
WIRA DR. HJ. MOHD SHUKOR
HJ. MAHFAR
Chief Executive Officer /
Director General Of Inland Revenue
DATO’ DR. SITI MARIAM
CHE AYUB
Deputy Director General DATO’ MOHAMMAD SAIT
(Compliance) AHMAD
Inland Revenue Board of Malaysia Deputy Director General
(Tax Operation)
DATUK SABIN SAMITAH

Deputy Director General
(Management)
DATO’ ABD AZIZ HASHIM

Deputy Director General
(Policy)

ORGANISATION CHART
BOARD MEMBERS
INTERNAL AUDIT
DEPARTMENT
CHIEF EXECUTIVE OFFICER/

DIRECTOR GENERAL OF INLAND REVENUE
Kolonel (K) Tan Sri Datuk Wira Dr. Hj. Mohd Shukor
Hj. Mahfar
DEPUTY CHIEF DEPUTY CHIEF DEPUTY CHIEF DEPUTY CHIEF

EXECUTIVE OFFICER / EXECUTIVE OFFICER / EXECUTIVE OFFICER / EXECUTIVE OFFICER /
DEPUTY DIRECTOR DEPUTY DIRECTOR DEPUTY DIRECTOR DEPUTY DIRECTOR
GENERAL GENERAL GENERAL GENERAL
(COMPLIANCE) (TAX OPERATION) (POLICY) (MANAGEMNET)
Dato’ Dr. Siti Mariam Dato’ Mohammad Sait Dato’ Abd Aziz Hashim Datuk Sabin Samitah
Che Ayub Ahmad
MALAYSIAN
DEPT. SDO DIVISION DEPT. SDO DEPT. SDO DEPT. TAX SDO DIVISION
ACADEMY
BRANCHES BRANCHES BRANCHES BRANCHES

DEPT. DIVISION
INVESTIGATION INVESTIGATION INVESTIGATION INVESTIGATION
BRANCHES BRANCHES BRANCHES BRANCHES
STATE DIRECTOR’S OFFICE (SDO)

CORPORATE GOVERNANCE STATEMENT
Inland Revenue Board of Malaysia (IRBM) More specific functions of the Board include
are committed in maintaining and the following:-
ensuring highest standards in the corporate
governance of IRBM. The Board is pleased 1. To evaluate and finalise on proposals for
to hereby present the IRBM’s statement on the creation of posts.
corporate governance for the year ending 2. To evaluate and approve proposals
December 31st 2013. This statement outlines for Service Schemes as well as Terms
best compliance practices and processes, and Conditions of Service.
which have been implemented by IRBM. 3. To deliberate and finalise on proposal for
the organisational restructuring of the
Board Members IRBM.
IRBM is governed by the Board of Directors, 4. To evaluate and approve the structures
which is headed by the Chairman and six of salaries, allowances and other
(6) members who lead and oversee the facilities.
organisation. The Board of Directors is also 5. To evaluate and approve proposals
responsible for the overall administration of for the adoption of or amendments to
IRBM and the main body that formulates circulars such as Service Circulars,
and determines IRBM’s policies and Service Circular Letters, Treasury
directions in achieving success and its Circulars, General Directives and others.
strategic objectives. 6. To evaluate and approve IRBM’s
operating, development and finance
Composition Of The Board expense estimates.
As of end of the year review, IRBM’s Board of 7. To evaluate and approve the IRBM’s
Directors comprises of seven (7) members. income as well as its financial
The current members have proven that they performance, development and
own vast experiences in public services, investment reports.
business operations, finance, taxation 8. To evaluate and endorse taxation
and legislative matters. Their experiences, policies, fees, charges and any facilities
knowledge and expertise were built provided for the employees of IRBM
through direct professional involvement in (cars and computer loans).
their various disciplines. 9. To provide advisory services on policy
matters and taxation affairs.
Responsibilities And Duties Of The 10. To evaluate and approve proposals for
Board the acquisition of real estate,
The Board is responsible for overall construction of building / IRBM branches
management of IRBM and is entirely as required and according to expansion
involved in strategic planning, analysing needs.
the operational performance of IRBM,
implementing internal controls and
enforcing compliance with the legal
requirements as outlined for IRBM.

IRBM Meetings
IRBM meetings are planned in advance complete with details of time and place. This is to
allow Board members to plan their schedules accordingly in order to have a full quorum in
the meetings.
Proposal papers meant for deliberation and discussions and are distributed much earlier
to provide time to dwell and analyses purposes during the board meeting. For the year in
review, IRBM has conducted eight (8) official meetings including special meetings.
IRBM Board Meetings

No. 1/2014 – March 8th 2014
No. 2/2014 – April 21st 2014
No. 3/2014 – June 27th 2014
No. 4/2014 – October 1st 2014
No. 5/2014 – November 3rd 2014
No. 6/2014 – December 12th 2014
IRBM Special Meetings

No. 1/2014 – January 28th 2014
No. 2/2014 – September 25th 2014

Risk Statement
This statement provides an overview of IRBM’s risk management policies, internal

compliance and regulatory system.
Responsibility
The top management assumes overall responsibility for the organisation’s risk management
through Risk Management Committee and Risk Management Division, which oversee the
overall, implementation and monitoring of risk management within IRBM.
Scope
Risk management involves all operational activities in IRBM.
Risk Management Monitoring
The Board monitors risk management and its effectiveness using combinations of internal
policies and procedures as well as through Audit Committee.
Internal Policies & Procedures
The Board implements risk management through internal policies and procedures that
address inherent strategic and operational risks within the organisation. These risks will have
impacts on the following:
- Strategy
-Compliance - Operations - System

Audits Asset and Acquisitions - Reputation
Investigations Finance - Natural Disasters
Revenue collections Legal
IRBM Risk And Compliance Committees
The Risk and Compliance committees approve and monitor risk management.
Risk And Compliance Committee Members
Chairman
Datuk Wan Selamah Wan Sulaiman
Accountant General Malaysia
Members
Datuk Hj. Shuib Md. Yusop
Private Consultant
Encik Fadzli Abdul Wahit

Private Consultant

Best Governance Practices
Risk management enables the standardisation of best governance practices within IRBM.
In accordance with the Prime Minister’s Directive No. 1 of 2009 entitled, “An Initiative to
Consolidate the Integrity of the Malaysian Government’s Administration Management
System : Establishment of a Committee on Governance Integrity”, which was issued on
November 30th 2009; ministries, departments and agencies are required to practise
risk management techniques prior to the implementation of projects or programmes,
especially those with high risks in order to minimise risks during their implementations. Thus,
IRBM has complied with this directive as part of the effort to strengthen its administration
management system.

CORPORATE PERFORMANCE
REVENUE COLLECTIONS
IRBM has successfully collected direct tax worth RM133.700 billion in 2014 with a 3.70%
increase as compared to RM128.933 billion in 2013. The achievement is a result of
integrated and continuous effort of IRBM’s workforce among Hasilian in collecting the
targeted direct tax through the implementation of respective functions in addition to the
economic factors which also contributed to the increase in the collection.
Contribution of Gross Direct Taxes To The Federal Government’s Revenue
RM (billion) 60.43%
59.40%
250 225.094 213.370
200
150 133.700 128.933 % of Gross Collection
100 Gross Collection
50 Federal Government’s Revenue

0
2014 2013
Nett direct taxes are gross direct taxes deducted from Tax Reimbursement Fund amounting
to RM7 billion. There is an increase in total nett direct tax collections even though there is a
slight decrease in the percentage of the government’s revised forecast collection in 2014.
Contribution of Nett Direct Taxes To The Federal Government’s Revised Forecast

96%
RM (billion) 95%
150 133.148
126.700 121.933 127.020
120
90 % of Nett Collection
60 Nett Collection
30 Federal Government’s Revised

0 Forecast
2014 2013
Income tax components such as company, individual and petroleum tax are among the
major contributors in the collection of government’s direct tax revenue in 2014, where each
components are represented by total percentage of 52.32%, 19.94% and 20.17% compared
to 2013 which were 50.49%, 23.08% and 19.09%. Companies and individuals taxes are higher
compared to the petroleum tax in 2014. This is due to the growth of employment and a
steady wage as well as Monthly Tax Deductions (MTD) updates by employers, while crude
oil price’s experienced a slight decline.

Other direct taxes comprise of stamp duty, real property gains tax (RPGT), Labuan business
activity tax and other taxes contribute to respectively, 4.83%, 0,92% 0.02% and 0.021%. An
increase in direct tax revenue was due to the growth of these positive real estate sector
with property values are high, the stock market and the insurance sector as well as the
impact of the increase in the rate of RPGT announced in budget 2014.
2014 2013
133,700.11 128,932.69
(RM million) (RM million)
Direct Tax Component 2014 (RM million) Direct Tax Component 2013 (RM million)
Companies 69,948.08 Companies 65,103.80

Petroleum 26,971.47 Petroleum 29,753.12
Individual 26,654.91 Individual 24,607.91
Cooperative 170.11 Cooperative 286.25
Withholding Tax 2,205.10 Withholding Tax 2,012.57
Stamp Duty 6,459.57 Stamp Duty 6,330.75
Labuan IOFC* 26.85 Labuan IOFC* 20.34
RPGT** 1,235.36 RPGT** 787.29
Others*** 28.66 Others*** 30.66
* IOFC (International Offshore Centre)

** RPGT (Real Property Gains Tax)
***Others (inclusive of Payment Section 124 ITA1967, court charges, bank interest, the legal results,
business registration and service fees Section 138B ITA 1967)
TAX MANAGEMENT EFFICIENCY
Overall, a collection cost of RM1.03 is spent for every RM100 of tax collected in 2014.
This given ratio is relatively lower as compared to the yearly KPI which did not exceed
RM1.14 for every RM100 of tax collected. The lower ratio as compared to the targeted KPI
is a significant indication of the planning effectiveness and the implementation of IRBM’s
activity made with emphasis on improving the quality of activity and the effectiveness of
prudent cost control.

TAX COMPLIANCE
Tax Audit
IRBM has given priority to the strengthening and implementation of tax audits (field and
desk audit) in order to increase the level of voluntary tax compliance among taxpayers
and the national revenue collection whilst carrying out audit focus which is one of the
strategies and initiatives in the Public Finance Reform; aimed to overcome the leakages
of nation’s revenue. The performance of tax audits settlement for company and non-
company are as below:
Tax Audits Settlement Performance
5,041.41
4,477.42
2,000,000
1,771,317
1,674,827
1,500,000
1,000,000
Tax and Penalties (RM million)
500,000 Company Cases
98,615 83,093
Non Company Cases
0
2014 2013
Field audits are carried out at taxpayers’ businesses’ premises. It involves the review of
business records and also the involvement of non-business record for single ownership.
Taxpayers will be notified prior to an field audit conducted by IRBM’s officers. The
performance of field audits are as follow:
Field Audits Performance
1,092.14
50,000
740.62
40,216
40,000
30,000 28,676
20,000 18,384 Tax and Penalties (RM million)

13,452 Audited Cases
10,000
Resolved Cases
0
2014 2013

Desk audits are done in IRBM’s office. It involves simple issues or tax adjustments which
can be resolved through correspondence or taxpayers are asked to the office if more
information is needed. In general, desk audits involve inspection on all income and
expenditure as well as information on variety of claims made by taxpayers in their Income
Tax Return Form. Desk audits performance is as below:
Desk Audits Performance

3,385.28 4,300.79
2,000,000
1,746,967 1,729,244
1,500,000
1,000,000
Tax and Penalties (RM million)

500,000
Resolved Cases
0
2014 2013
Transfer Pricing Audit
In line with the introductory of revised Law of Transfer Pricing under Section 140A and
Section 138C of ITA1967, effective from 1st January 2009, IRBM has emphasis on the issue
of transfer pricing of external borders and other issues relating to tax leakages such as the
transition of profit that should be reported in Malaysia to foreign countries or better known
as base erosion and shifting profit (BEPS).
In addition to the audit activities and transfer pricing compliance check are among
the contributing factors to the increase of cases settlement in 2014 as compared to the
previous year. The performance of resolved transfer pricing audit cases is as below:
Resolved Transfer Pricing Audit Cases Performance
156.60 160.67
200
160 156
150
100 Total Collection (RM million)

Total Resolved Cases
50
0
2014 2013

Monthly Tax Deductions (MTD) Audit
MTD audit program is performed concurrently with tax audit, aiming to examine employers’
compliance rate in imposing tax deductions from employees’ salaries and remitting it to
IRBM based on the rules stipulated in the Income Tax (Salary Deduction) Rules, 1994. MTD
audits are conducted by inspecting employees’ payroll records at the employers’ premises.
2014’s MTD audit statistic as per below:
MTD Audit
Year No. of Non-Compliant Insufficient Compounds Total Tax & No. of
Employer’s Employers Tax (RM million) Compounds Offences
Audited Total % Deductions (RM million) Charged
(RM in Court
million)
2014 70,331 16,780 24 % 100.41 13.03 113.44 1,427
2013 62,717 12,479 20 % 59.42 8.00 67.42 1,505
HASiL Friendly Visit
HASiL friendly visit is one of operations carried out by IRBM periodically at national level
and at IRBM State Director’s Offices nationwide. HASiL friendly visit is a specialised tracking
activity and as an initiative to enhance the effectiveness and the ability of IRBM in its effort
to boost up the revenue collection.
Throughout 2014, a total of three (3) HASiL friendly visits were carried at national level as
well as other operations at the state level and branches. Operations in 2014 have taken a
friendly approach by providing tax education to taxpayers. Badges with tagline “Hasil Your
Tax Education Partner” are also worn by all officers involved during operations.
Positive feedbacks were received from taxpayers when they had the opportunity to ask
questions and seek advices directly from IRBM officers. Tax pamphlets were also supplied
during the visits which helped taxpayers to understand matters relating to taxation.

ENFORCEMENT AND EXECUTION
Investigation Programme
Investigation programme is one of the enforcement procedures undertaken by IRBM to

curb tax evasion, identify responsible person for tax evasion and to execute. In addition,
it is also intended to increase voluntary tax compliance, provide justice to taxpayers
who comply and collect proper amount of tax. Starting 2013, investigations are done in
accordance with the procedure of criminal investigation, in which prosecution action will
be taken to enhance the effectiveness of the investigative activities on tax evasion cases.
Apart from the provisions of the Income Tax Act (ITA) 1967, investigations also adapt
provisions appearing in the RPGT Act, Petroleum Act 1976 (Income Tax) Act 1967, Promotion
of Investments Act 1986, Stamp Duty Act 1949, Labuan Business Activity Tax Act 1990 as well
as Anti Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA).
A total of 36 investigation papers were prepared for the purpose of prosecution throughout
2014. Whilst tax and penalties collected are RM543.96 million, an increase of 6.38%
compared to collections in 2013 of RM511.33 million. The investigation performance is as
follows:
Investigation Performance
543.96
511.33
800
689
700 617
600
500
400 Total Collection (RM million)
300 Total Resolved Cases
200
100
0
2014 2013
Ban From Leaving The Country
The enforcement on a ban from leaving the country (Section 104, Income Tax Act 1967) will
be imposed on taxpayers who fail to settle their income tax and Real Property Gains Tax
(RPGT) liabilities as well as those who believed will escape/leave the country.
The following table shows the statistic on a ban from leaving the country in 2014.

Ban From Leaving The Country
Total Total
Total Total Total Total
Total No. Amount Amount Total No.
Amount Registered Cancelled Amount
of Cases of Tax of Tax of Cases
of Tax Cases Cases of Tax
Type of Tax Effective Involved Involved Effective
Involved (January – (January – Involved
(2013 & (RM (RM (Until
(RM December December (RM
Prior) million) million) 2014*)
million) 2014) 2014) million)
Income Tax 58,782 1,916.02 25,811 494.94 3,439 46.14 75,285 2,221.94
Real
Property
6,946 114.76 2,652 26.76 741 8.26 7,037 110.92
Gains Tax
(RPGT)
Total 65,728 2,030.78 28,463 521.70 4,180 54.40 82,322 2,332.86
*Inclusive of cases before 2014
Civil Suit Actions
Civil suit actions will be taken against taxpayers who failed to settle their dues or taxes under
the Income Tax Act 1967 or the Real Property Gains Tax Act 1976 by filing summons and
claim statement in court. Prosecution for collecting the outstanding tax liability is carried
out in certain courts depending on the amount of tax being claimed for each case.
COLLECTION
Monthly Tax Deduction (MTD)
Monthly Tax Deduction (MTD) is tax deducted by employers on eligible employees

according to income tax (deduction from remuneration) Rules 1994. It aims to reduce the
burden of employees to pay taxes in one lump sum during the submission of their Income
Tax Return Forms.
Apart from IRBM payment counters, MTD can also be collected at bank counters/post
office and internet banking. There is an increase of 0.54% in MTD collection from the total
revenue collection in 2014 as against 14.25% in 2013. Achievement of overall collection
through MTD compared to revenue collection is as follows:
MTD Collections Performance

14.79 14.25
150,000
133,700.11 128,932.69
120,000
90,000
Percentage of Contribution
60,000 Collections by MTD (RM million)
30,000 19,773.34 18,379.24 Revenue Collections (RM million)

0
2014 2013

Tax Collection Through Instalment Payment Scheme
There are two (2) categories of tax collection by instalment under Section 107B and 107C
of the Income Tax Act 1967.
Provision of section 107B shall apply to taxpayers of category other than companies,
cooperatives and trust bodies to pay taxes by instalment twice a month through an
instalment notice (Form CP500) issued by the Director General of IRBM.
While Section 107C is applicable to taxpayers of companies, cooperatives and trusts

bodies to pay taxes by submitting an estimated tax (CP204) on or before the deadline
allowed by period basis taxpayers.
Failure to adhere the instalment payment schedule for both categories as per above will
incur tax increase of 10% over the unpaid instalment balance. Below is the collection of
taxes through instalment scheme of CP500 and CP204 for 2014 compared to 2013.
Tax Collection Through CP500 and CP204 Instalment Payment Scheme
2,588 1,914
361,786 337,843
363,221 364,233
51,486 52,661
2014 2013
Total No. of CP204 Forms Received * Estimated tax stated in CP204 (company,
cooperative and trust body)is before any
amendment and payment made.
** CP500 instalment payment (categories other
Estimated Tax of CP204* (RM million) than companies) is before any amendments and
payment made.
Total No. of CP500 Issued
Form CP500 Instalment Payment (RM million)

Management of Revenue Arrears
Being the government’s primary tax collection agency, IRBM is responsible in ensuring
tax liabilities are collected efficiently and effectively to the government, to prevent the
occurrence of arrears in revenue. Managing the arrears in revenue has always been
prioritised and improved to reduce the amount of arrears in current cases to a minimal
level while avoiding the emergence of new arrears. As of December 31st 2014, a total of
692,253 tax arrears cases were successfully resolved. The achieved reduction in tax arrears
cases has led to a drop in the accounts receivable balance by 70.97% involving an amount
of RM5.94 billion.
Withholding Tax Collections
Withholding tax is an amount received by non-residents (individuals / non-individuals) and

paid to IRBM. Withholding tax collected in 2014 is RM2,205.56 million as per category below:
Withholding Tax Collection
Section
Section 109 /
Section 107A Section 109C 109D
Year 109B
(RM million) (RM million) (RM million)
(RM million)
2014 176.67 1,985.95 3.06 39.42

2013 157.54 1,820.18 4.40 30.80
CUSTOMER SERVICES
Refund
According to IRBM Client Charter, the process of refund of the current year takes 30 working
days via e-Filing. However, for every Income Tax Return Forms (ITRFs) received manually will
be processed within 90 working days.
Refund payment through Electronic Fund Transfer (ETF) is implemented solely for local
transfers, whilst Telegraphic Transfer (TT) is made for overseas refunds. The performance for
2014 refunds are as follows:

2014 Tax Refund Performance
2014 2013
Non Companies No. of Cases 1,712,361 1,537,177
Amount (RM million) 2,466.26 2,007.27
Companies No. of Cases 114,348 155,482
Amount (RM million) 5,701.46 5,714.94
Customer Service Centres (CSC)
CSC is functioned to provide tax services mainly through phone calls and emails. Taxpayers
may call IRBM using the toll-free number at 1-800-88-5436 (LHDN). Two (2) CSCs are located
in Petaling Jaya, Selangor and in Kuching, Sarawak. All calls received will be segregated
automatically to CSC Petaling Jaya or CSC Kuching.
Call-Out-Centre (COC) is an alternative for CSCs. It is a friendly approach of tax arrears

collection and capable to help taxpayers where they will be contacted and notified upon
any tax arrears. In addition, advices on payment procedures as well as legal action (Civil
Legal and enforcement Section 104) are also notified if payment is failed. This alternative
can help to reduce tax arrears and increase collections. CSC’s performance for the year
2014 are as follows:

Calls received: 376,094
Calls answered: 333,161
Emails received: 74,212

Emails replied: 74,212

Call Out: 546,389
Resolved Cases (Calls): 526,506
Resolved Cases (RM): 2,583,476,099.88

Revenue Service Centres (RSC)
Revenue Service Centres (RSCs) were established to delight taxpayers in services such
stamp duty, income tax consultations and any directed services by Ministry of Finance
such BR1M. Total number of RSC as of December 31st 2014 nationwide, are as follows:
Revenue Services Centres Nationwide (RSC)
Current RSC
19
24 Latest RSC (2014)
RSC In Planning
Performance of RSC‘s total collections in 2014 are:

Revenue Services Centres (RSC) 2014 (RM million) 2013 (RM million)
RSC Alor Gajah 1,832,578.60 1,223,146.05
RSC Batu Pahat 45,991,099.74 44,028,689.60
RSC Bentong 34,559,924.60 25,013,073.16
RSC Besut 2,345,010.15 2,138,608.70
RSC Cyberjaya 31,895,602.55 26,124,074.35
RSC Hulu Langat 133,007,749.66 102,187,702.46
RSC Jasin 2,061,712.60 1,914,685.85
RSC Jerantut 5,568,826.60 3,819,419.75
RSC Kemaman 10,148,062.75 8,567,179.10
RSC Kuala Langat 16,177,755.90 11,357,751.30
RSC Kuala Pilah 5,060,177.30 6,429,053.95
RSC Kudat 546,138.00 906,239.35
RSC Kulim 10,392,242.65 9,064,777.40
RSC Lahad Datu 2,646,617.85 3,749,614.65
RSC Langkawi 3,531,915.05 3,258,268.75
RSC Limbang 1,801,839.80 1,861,344.65
RSC Manjung 31,267,293.30 36,755,162.00
RSC Mukah 83,656.00 88,321.00
RSC Pontian 10,283,691.50 12,347,713.70
RSC Seberang Perai 10,232,887.90 7,366,799.35
RSC Segamat 14,864,781.38 17,027,900.50
RSC Sri Aman 1,164,269.55 1,473,363.75
RSC Tampin 4,396,633.20 5,172,285.05
RSC Tanah Merah 2,422,493.70 3,126,374.50
RSC Kuala Kangsar* 729,891.25 -
*Operated on September 2nd 2014

Tax Payment Facilities
IRBM offers variety of facilities to taxpayers for tax payment purposes. Despite the current
IRBM payment counters located in Collection Branch of Kuala Lumpur, Kuching and Kota
Kinabalu, payments are made available at any appointed bank counters or via online
payments. Tax Payment Performance are as follows:
Tax Payment Performance

0.009
6,352.12
34,186.83
26,348.61
71,093.43 72,492.42
28,419.84 23,739.54
2014 2013
Payment Counters* and Mail (RM million) Online Banking (RM million)
Bank Counters (RM million) Others** (RM million)
* Payment Counters in Kuala Lumpur, Kuching and Kota Kinabalu.
** Inclusive of Stamp Duty, Estate Duty, IOFCs, business registration and others (excluding payments through internet banking)
One-Stop-Counters
One-Stop-Counters are operated by the HASiL Care Group Unit (formerly known as
Customer Service Unit) at all IRBM Branches including 7 Urban Transformation Centres (UTC)
counters and 25 RSCs nationwide.
This service allows taxpayers to manage tax matters in one location in a prompt, friendly
and comfortable environment. In an effort to improve the counter services, taxpayers are
given the opportunity to address any views and complaints via the feedback form online
at IRBM official portal, which are placed in all IRBM electronic service kiosk counters.
Customer service feedback via e-Rating can only be applied at Petaling Jaya and Kota
Kinabalu branches, which both are under MAMPU’s supervision.

TAX EDUCATION PROGRAMME
Tax Educational Programmes are designed to provide exposure and awareness on tax
related matters among individual taxpayers, corporations, tax agents, employers and
potential taxpayers pertaining to Malaysian Tax Laws. Furthermore, these programmes also
aimed to educate taxpayers on their rights and responsibilities to increase the level of
voluntary tax compliance.
Tax Education Programme
Towards helping taxpayers and the public in obtaining tax information at ease, accurate
and fast, IRBM has implement tax education programmes through talks, workshops and
briefings. These programmes are delivered by experienced IRBM staff for free at all IRBM
branches nationwide and taxpayers’ premises. Among the topics offered were Taxpayers’
Responsibilities (Resident and Non Resident), Employers’ Responsibilities, Monthly Tax
Deductions as Final Tax, Retirement Preparation, ezHASiL promotion (e-Filing, TaeF,
ByrHASiL, e-PCB, e-Data PCB, STAMPS, and others) Audit, RPGT, cooperation and other
related activities to tax education and awareness. Statistical overview of tax education
programmes are as follow:
Activities and Participants of Tax Education Programme

Year Total Activity No. of participants
2014 2,738 95,321
Business Support Services (BSS)
Business Support Services (BSS) provide small and medium traders who are not represented
by tax agents either “one-to-one” or no more than 10 participants in a session. Participants
gathered are resulted from IRBM’s Ops Mesra report, external audit, private agencies,
Pusat Giat MARA, chambers of commerce and business associations as well as taxpayers
who visited IRBM counters or list of employers based on the MTD records. The workshops are
inclusive of methods on business record-keeping, preparation of simple business accounts,
correct use of business codes as well as tax calculations and payments. The statistic of BSS
is:
Statistic of BSS Workshops and Participants
Year No. of Workshops No. of Participants
2014 609 5,283

Tax Relation Officer (TRO)
The appointment of Tax Relation Officer (TRO) among employers, government, private
and any organisations of high number of employees are function as an intermediate /
connector to other staffs in disbursing information, exercising as taxpayers and widening
tax knowledge/information. TROs appointed by the head of an organisations are among
the Human Resource executives and Public Relation officers who can easily be referred by
co-workers. In 2014, a total of 1,481 TROs were appointed and trained by IRBM.
HASiL4U Programme
Year of Assessment 2014: Income Tax Return Forms (ITRF) Campaign
Among the contents of HASiL4U programme are inclusive of ITRF Campaigns for the 2014
Year of Assessment via e-Filing or m-Filing (smart phone applications)
Campaigns and promotions were launched from March 1st to April 30th for BE Forms and
from June 1st to June 30th for B Forms held at IRBM Branches or any agencies’ premises
though instructions received from Corporate Services Department / State Director Offices.
Statistic of HASiL4U Counters 2014
No. of Counters 5,534
No. of Visitors 353,998
Exhibitions and Expos
ezHASiL counters were initiated for public at trade expos and exhibitions organized by the
government, statutory bodies and private companies, aiming to promote IRBM electronic
services. Among participated expos in 2014 were Mobile CTC / HR Open Day / SME ASEAN
Conference / National Tax Conference 2014.
Urban Transformation Centre (UTC)
HASiL4U programme were enliven through agencies participation at UTC. UTC is triggered
through the Blue Ocean Strategy (NBOS6), which became a landmark of government
services to the people, especially the urban societies.

As of December 31st 2014, UTC Branches are available at seven (7) states as per below:
i. IRBM UTC Malacca Branch

ii. IRBM UTC KL Branch
iii. IRBM UTC Perak Branch
iv. IRBM UTC Pahang Branch
v. IRBM UTC Kedah Branch
vi. IRBM UTC Sabah Branch
vii. IRBM UTC Johor Branch
Scope services provided by IRBM at UTC Branches are only for assessment / collection /
ezHASiL electronic services and tax consultation (without incurring the review of physical
files)
Tax Seminar
National Tax Seminar
Tax seminar is an organized annual activity aimed to give information in respect of any
changes in tax law. Participation is open to tax practitioners, company owners, professional
bodies, employers and the public. In 2014, IRBM has organized national tax seminar at 23
selected locations nationwide.
Collaborated National Tax Seminar
IRBM also hold seminars in collaboration with professional bodies and associations as
follows:
i. Round Table Discussion CTIM

ii. Annual Budget-CTIM Seminar
iii. Annual Budget Seminar-M.A.T. A
iv. Seminars IRBM-MEF
v. IRBM-CTIM Tax Forum
Types No. of Location Participants
Annual Budget Seminar - CTIM 10 2,105
Annual Budget Seminar - M.A.T.A 7 1,723
IRBM Seminars-MEF 2014 15 2,368
National Tax Seminar 2014 24 8,665
LHDNM-CTIM TAX FORUM 2014 6 526

IRBM Visits
Another continuous tax education activity conducted by IRBM throughout the year is visits
by students of Higher Education Institutions and external agencies throughout Malaysia
to IRBM headquarters and branches. The contents of the tax educational visit are in the
form of talks on IRBM including tax awareness, employment opportunities and a visit to
various IRBM service counters. Students are expose on employment opportunities in IRBM.
Additional activities such as quizzes are also combined specifically to our future taxpayers
from higher institutions to have more impact on tax awareness.
Kidzania Tax Office (KTO)

Kidzania is an education and entertainment theme park that provides an opportunity for
children to play in the world of employment in more than 60 industries and services. IRBM,
an agency under the Ministry of Finance is the first government agency in Malaysia to
become an official partner with Kidzania Kuala Lumpur. IRBM has placed a branch known
as “Kidzania Tax Office” (KTO) which has officially opened to visitors on September 14th
2013.
Partnership between Kidzania Kuala Lumpur and IRBM enables children to role play as an
assessment tax officer known as ‘Junior Tax Officer’ (JTO) which carry out the work in the
KTO.
Through this approach, children who are also the future generations will understand the
importance of taxes to the nation’s development and where tax revenue is spent. The
programme is able to inculcate awareness among younger generations to be responsible
citizens to the country.
Kidzania Tax Office Children Visitors In 2014
No. of Visitors
1,400
Girls 1182
Boys 1114
1,200
936 910
1,000
837
967
744
701 902
800 652 727
475 727
600 469 452
623 568
315 496 552
400
422 370
361
200 224
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Announcements and Publicity Through Media
Announcement and publicity programmes through media play a significant role in

increasing the level of tax education and awareness among public. IRBM is continuously
conduct tax education and awareness activities and has succeeded in securing TV slots,
radio and local newspapers for free or at a minimum rate throughout 2014.
The electronic media has played a pivotal role in assisting IRBM to promote the submission
of Income Tax Return Form campaign and encourage usage of IRBM’s electronic services
campaign besides other information on taxation matters. The publicity generated has
indirectly further lifted the image of IRBM while simultaneously improving public awareness
and attitude to the importance of paying tax. The significance of publicity is proven based
on the yearly increase in e-filing users.
IRBM also disseminate information through their official portal www.hasil.gov.my. This portal
service has been enhanced with the newly introduced in house development portal.
They are equipped with interactive features and more user-friendly. IRBM also improve
customer feedback system for taxpayers to submit their complaints easily. Until December
2014, a total of 16 electronic services were offered using the brand ezHASiL via this portal.
In addition, IRBM also use Facebook and Twitter as an added value to the existing portal
service as well as reaching out to taxpayers through social media.
Statistics of Visitors and Information provided by IRBM
Medium Visitors
Facebook and Twitter 234,276
Official Portal 22,372,555

IRBM Publication

In 2014, IRBM has published several educational materials. Among them are:
• 19 types of Tax Brochures in Bahasa Malaysia and English. These tax brochures are
distributed to taxpayers and public through service counters across IRBM branches.
• 8 types of Taxation Posters in Bahasa Malaysia and English. These posters are distributed
to IRBM branches throughout Malaysia and displayed at IRBM service
counters for the purpose of channeling information to taxpayers and public.
• 1 guide book to the merchant entitled “I Am A Responsible Businessman”.
• Educational Flyers to taxpayers and public in accordance with time and service needs
throughout the year.
• Berita HASiL which is the official news magazine for internal distribution and external
agencies. It is issued three (3) times yearly.
These publications can be downloaded free via IRBM’s official Portal.

ELECTRONIC SERVICES
IRBM is constantly making innovations and improvements in electronic services offered

to customers and community. Known as ezHASiL, this service is helpful in generating high
amount of revenue collection and operational cost savings.
IRBM’s current e-services: e-Filing, m-Filing, e-Daftar, e-PCB, e-Data, and e-Lejar, e-Datapraisi,
e-SPC, ByrHASiL, STAMPS, TaeF, e-Kemaskini and Kalkulator PCB.
2014’s additional e-services: e-Bas, e-BNT C and MyTax
e-BaS
e-BaS is a method of sending e-forms by batch, via TAeF. It aims to facilitate the delivery by
tax agents. This facility is available to improve electronic services to users. It was launched
on March 1st 2014. These service can save time in terms of filling e-form, minimize the
incidence of errors in the initial data. The software provider meets the specification of IRBM
through XML checking format.
e-BNT C
e-BNT C is introduced in accordance with the amended provisions of subsection 77 (1A),

the Income Tax Act (ITA) 1967 effective from the assessment year of 2014, whereby a
company shall submit form electronically. e-BNT C is available for taxpayers to make their
own amendment (self-amendment) on information or assessment that has been previously
reported online. It was first implemented in December 2014.
MyTax
MyTax is a digital mailbox which features latest tax activities for individual. Taxpayers can
access by using a digital certificate. MyTax was implemented on July 10th, 2014. At the
beginning, MyTax was developed for taxpayers to view information such as the following:
i. Display announcements on related tax activities.
ii. The mailbox which displays the receivable status of the electronic form for e-Be, e-B, e-BT,
e-M and e-MT as well as notification of repayment made by IRBM.

The performance for e-Filing, e-Daftar and other e-services throughout 2014 are as follow:
e-Filing Performance
2,500,000 2,330,298
2,058,395
2,000,000
2014
1,500,000
2013
1,000,000
514,227 455,694
500,000
274,452 208,430
77,681 67,333 82,937 70,646
20,483 17,683
0
BE B C M P E
e-Daftar Performance
100,000
88,195 87,392
80,000 No. of Applications
60,000 Successfully Registered Applications
40,000
23,611 20,133
20,000
8,577
0
Individual Companies Employers
e-Services Performance (Others)

2,500,000
2,107,803
1,991,403
2,000,000 2014
2013
1,500,000
1,000,000
500,000 103,464 25,495 150,762 120,981

99,264 12,592 1,110
46,895 20,171 16,802 14,831 1,013
0
ByrHASiL STAMPS e-PCB e-Data PCB e-Kemaskini e-SPC e-LEJAR

WIDENING TAX BASE
IRBM also serves to widen the country’s tax base in ensuring that every eligible taxpayers are
included in the tax network. In achieving this objective, IRBM has put the implementation
of Business Census Programme and identification of taxpayers’ information from various
sources. Business Census Programme is conducted at taxpayers’ business premises to
increase the level of compliance, widen the tax base and collect taxpayers’ basic
information. Tax advisory services covering record-keeping, laws and tax regulations as
well as education on accurate tax deduction are also provided to taxpayers.
The number of visited taxpayers’ premises in 2014 are lower compared to 2013. The focus
on the quality of the visits are no longer on chasing the number of premises, instead
emphasis to the understand taxpayers’ responsibilities. While friendly visits were carried out,
tax education tax advisory services were also provided to taxpayers.
The performance of HASiL friendly visits in 2014 are as below:
HASiL Friendly Visit Performance
New Non- Non- Cases

No. of Visited
Year Registered Compliant E/ Compliant Referred To
Premises
Files BN Forms MTD Field Audit
2014 22,775 2,962 11 30 217
2013 32,058 3,857 136 46 240
TAXPAYERS’ RIGHTS
Tax legislation allows taxpayers the right to submit their disagreement or appeal over an
assessment within 30 days from the date of the issuance of the assessment notice. If taxpayers
are not satisfied with IRBM’s decision, they may appeal to the Special Commissioners of
Income Tax (SCIT) by filling in Form Q and the Director General of Inland Revenue will
submit the case to the SCIT for a decision. Both sides can appeal to the High Court and
subsequently to the Court of Appeal if they disagree with the SCIT’s decision.

Form Q
Income Tax
Objection Companies Individual* RPGT
2014 2013 2014 2013 2014 2013
In Process (b/f)** 67 13 4 1 2 0
Filed in Year 331 194 40 22 27 8
Total 398 207 44 23 29 8
Resolved 208 140 34 19 23 6
In Process (c/f)*** 190 67 10 4 6 2
Appeal
High Court of Federal
SCIT
Appeal Court Appeals Court
2014 2013 2014 2013 2014 2013 2014 2013
In Process (b/f)** 288 199 34 29 35 40 4 1
Filed in Year 189 100 22 23 12 16 7 6
Total 477 299 56 52 47 56 11 7
Resolved 125 63 8 20 19 28 2 2
In Process (c/f)*** 352 236 64 32 28 28 9 5
* Inclusive of trust body, organisation and partnership.

** b/f: brought forward from previous year.
*** c/f: carried forward to the following year.
CORPORATE SERVICES RESPONSIBILITIES (CSR)
The CSR programme was held to enhance the image and reputation of IRBM, as well as to
benefit the well-being and interests of society and the organization. Until the year 2014, the
implementation of CSR programmes were expanded to the State level and IRBM branches
to benefit the local. Corporate Services Department was responsible in performing all CSR
activities based on the following dimensions:
Stakeholders –
IRBM
Internal, Environment Education Community
CSR
External

Among the programmes / activities done throughout 2014 are as follow:
Stakeholders – Internal (Hasilian)
Minggu Sihat Hasil 2014
Minggu Sihat Hasil was held on June 23rd to 27th 2014 with the theme of “A Healthy
Culture and Driving Productivity”. This programme was conducted in collaboration with
Risk Management Division to create awareness among Hasilian on healthy and safe
work culture. Among the activities involved were free health screening, health talks and
exhibitions. In addition, the Skuad Sihat Hasil from IRBM branches were appointed to carry
out activities in each branch so the programme can be done as a whole and not just
concentrated at IRBM headquarters only.
Stakeholders – External (Taxpayers)
The ‘extra miles’ service is done by providing mobile phones to the Customer Care Officer
(CCO) of IRBM for taxpayers to get direct services from CCO easily.
Education
2014 Advance Pricing Arrangement Seminar (APA)
The Advance Pricing Arrangement Seminar (APA) was conducted twice on August 28th
2014 in Johor Bahru and on November 25th in Cyberjaya. This seminar is aimed to create
awareness among companies in Malaysia regarding services provided by IRBM relating to
Advance Pricing Arrangement. Among the services are:
- To promote Advance Pricing Arrangement to multinational companies for cross border
transactions;
- To explain in detail on Section 138C of Income Tax Act 1967;
- To explain the Income Tax Rules (Pricing Arrangement) 2012;
- To explain the Advance Pricing Arrangement Guidelines
Environment
CSR Marine, Sabah
2014 CSR Marine, Sabah was held on January 11th 2014 at Manukan Island, Sabah.
IRBM collaborated with Sabah Parks in coral conservation campaign to produce coral
ecosystems through new construction and reduction of units coral frame and concrete
block at Manukan Island, Kota Kinabalu, Sabah. This is to facilitate the planting and growth
of the coral reef to replace coral that has been damaged.

Kelestarian Alam Hijau Programme
Kelestarian Alam Hijau Programme was held on May 14th and 15th 2014 at Persiaran
Multimedia, Cyberjaya, Dengkil, district of Sepang. It was a collaboration with Setia
Haruman Sdn. Bhd., a subsidiary of Emkay Group. This programme is also a support to the
government’s efforts to make Cyberjaya, a city of low-carbon by 2025.

Community
Jom Shopping Raya Programme
Jom Shopping Raya was held on June 28th 2014 at AEON Wangsa Maju in collaboration
with Skuad Sayang Hasil, Wangsa Maju branch. A total of 30 orphans from Orphan Care
Centre Sri Kundang were selected where they were brought to buy eidul-fitr clothes. AEON
Wangsa Maju has generously gave special discounts for the orphans to choose the clothes
they liked.

Ihya’ Ramadhan Programme
Ihya’ Ramadhan was held on July 24th 2014 in collaboration with IRBM’s PERKIS. Contribution
to the orphans, people with disabilities and those in need were presented during break
fasting. This programme is aimed to increase awareness among Hasilian towards the
disadvantaged communities who needed assistance. Besides that, it is also to receive
blessings during Ramadhan.
Sri Kundang’s Orphanage Field Trip to Kidzania
The field trip was held on January 14th 2014 in collaboration with the Skuad Sayang
Hasil Klang Valley, to handle 36 orphans of Sri Kundang. This programme has provided
opportunities for the orphans to learn new world in Kidzania. The activities can help them
to explore the working world and indirectly exposed to their future ambitions.

INTERNATIONAL NETWORKING
DOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA)
DTAA and International Taxation Development.
Until 2014, Malaysia has 74 Double Tax Avoidance Agreement (DTAA) and a Tax Information
Exchange Agreement (TIEA). TIEA is an agreement executed by the specialized countries
for the purpose of national collaboration in matters of taxation through the exchange of
information. In 2014, four (4) DTAA were held namely negotiations with Azerbaijan, Chile, Fiji
and the Republic of China.
In Phase 2 Peer Review conducted by the Global Forum on Transparency and Exchange of
Information for Tax Purposes, Malaysia has been valued as Largely Compliant. In addition,
Malaysia has stated a commitment to implement new information exchange standards
through the Declaration on Automatic Exchange of Information in Tax Matters where the
first information exchange will be done by Malaysia in 2018.
The exchange of information under Foreign Accounts Tax Compliance Act (FATCA) will
take effect in 2015. For that purpose, Malaysia has reached an agreement in substance in
June 2014 and is set to finalize an agreement with the United States.
Malaysia is also actively involved in meetings and international forums. Malaysia is a

member of the Forum on Tax Administration (FTA), the Committee on Fiscal Affairs (CFA),
OECD and attend meeting of Working Party No. 1 (Tax Conventions and Related Questions),
Working Party No. 6 (Taxation of Multinational Enterprises), Working Party No. 10 (Exchange
of Information and Tax Compliance) and Working Party No. 11 (Aggressive Tax Planning).
Through this involvement, Malaysia has participated in the drafting of regulations and
discover solutions to issues that becomes the ultimate focus among world tax administrators
which is on Base Erosion and Profit Shifting.
International networking
IRBM has received invitations from tax administrators and organizations to share knowledge
and expertise in various fields. Throughout 2014, General Department of Taxation Cambodia,
Sri Lanka Institute of Development Administration, Revenue Mobilisation Allocation
and Fiscal Commission of Nigeria and Ministry of Finance India have involved in a total
of 46 delegates were present at IRBM to learn few aspects on information technology,
information processing, tax administration and revenue collection management.
IRBM and Amsterdam Centre for Tax Law (ACTL), University of Amsterdam have organized a
Regional Integration of Different National Tax Systems Conference: The EU Experiences and
its Lessons for ASEAN. The conference was attended by tax administrators, policy makers,
professional experts and academic scholars locally and internationally, in particular the
ASEAN member countries to discuss on tax issues as well as development policy on ASEAN
tax regulations based on European Union experiences.

IRBM officers also serve to share their knowledge internationally as specialists in training
programmes organized by IBFD and The Netherlands Tax Administration, to train officers
from Rwandese Tax Authorities apart from programmes organized by OECD at Malaysian
Tax Academy (MTA) which was attended by tax officials from various countries.
The success of IRBM’s administration is proven when the Department of Inland Revenue of
Sri Lanka (IRDSL) has given their trusts for IRBM to provide training to more than 1200 officers
through 11 training series on Training On E-Governance And Change Management that
lasted from October 2014 until September 2015. The excellence of IRBM’s CEO drive the
transformation of IRBM is recognised as he was invited by international tax administrator to
share the recipe of his success through briefing on Transformation Experience in Malaysia
to General Department of Taxation Cambodia and General Department of Taxation of
Mongolia as well as att he briefing of Tax Administration Reform in Inland Revenue Board
of Malaysia at the 5th IMF-Japan High-Level Tax Conference For Asian Countries-Emerging
Tax Issues in Asia.
IRBM remain active in various international organisations such as OECD, SGATAR, JICA,
ATAIC, CATA, IBFD and others. The empowerment of officer’s knowledge and expertise
continues to be the aspect that was emphasized by IRBM. For that purpose, throughout
2014 IRBM has sent a 241 officers to participate in a wide range of benchmarking visits,
courses, trainings, seminars and international conferences organised by tax administrator
and international tax organisations.
Mutual Agreement Procedure (MAP)
In 2014, seven (7) cases of MAP were conducted which involved transfer pricing issues,
interpretation and application of DTAA, technical fees and Bilateral Advance Pricing
Arrangement Application.
Abbreviation:
ATAIC : Association of Tax Authorities Islamic Countries
CATA : Commonwealth Association of Tax Administrators
IBFD : International Bureau of Fiscal Documentation
JICA : Japan International Cooperation Agency
OECD : Organisation for Economic Corporation and Development
SGATAR : Study Group on Asian Tax Administration and Research

ORGANISATION DEVELOPMENT
HUMAN RESOURCE DEVELOPMENT
The main objective in the implementation of the IRBM Strategic Planning in terms of
human resources is to produce competent human capital, professional, with integrity and
dedication. Core values based on competency should be embedded on each individual
to ensure the vision, mission and direction set is to be achieved effectively. Hence, one
competency model has been created and developed according to three (3) competency
groups namely Meta, Generic and functionality.
The competency model set is important in IRBM as it is closely related to human resources
management, particularly in human resources planning, selection and appointment,
succession planning and development, performance management, training and
development, remuneration and employee relationship management.
The total staffing and vacancy according to each field position for the year 2014 are as
follow:
Total Staff, Filling and Vacancy According To Field Position

Field Post Filling Vacancy
Top Management 33 31 2
Assessment 6,581 6,348 233
Information Technology 284 279 5
Legal 103 102 1
Accounting 303 301 2
Administration* 3,745 3,557 188
Total 11,049 10,618 431
*Inclusive of engineering, administration, services, group posting, safety, psychology & others
Internal Training Programmes
IRBM also have training institution known as Malaysian Tax Academy (MTA), which
responsible for planning and implementing quality training for officers in order to create
more knowledgeable human resources, high-performance, multi-skilled, integrity, creative
and innovative. The scope of training available coverd the whole field of investigation,
management, audit practices as well as public relations. Various training programmes
conducted by qualified instructors through training center as follows:
1. Accounts and Audit Training Center

2. Legal Training Centre
3. Investigation Training Centre
4. Management Training Centre
5. International Tax Training Education Centre
6. ICT Development and Training Centre

Training Programmes Performance
Throughout 2014, MTA has managed to handle a total of 243 (87.7%) courses as planned.
This amount does not include ad-hoc courses and courses organised by external parties.
This achievement has exceeded the targeted quality objectives carried out of at least 85%
scheduled courses in the Annual Training Programme. Performance training programmes
are as follow:
Training Programmes Performance

No. of No. of No. of Percentage of Targeted
Year Officer Planned Implemented Achievement Quality
Trained Training Training (%) Objectives (%)
2013 14,409 273 273 100.0 85
2014 10,043 277 243 87.7 85
International Training Programmes
International Training Center, Research and Innovation (ITCRI) is one of the training center
in MTA. In line with the quality policy of MTA to enhance skills of human resources through
effective training, ITCRI is committed to continuously develop human capital through tax
education and dynamic, quality international courses. ITCRI is responsible in handling
joint venture programmes with foreign organisations, Malaysian technical cooperation
programmes and also tax education.
To expand the perspective and knowledge of IRBM officers as well as foreign participants
related to international issues, MTA has collaborated with international organisations
such as the Commonwealth Association of Tax Administrators (CATA), the Organisation
for Economic Cooperation and Development (OECD), the International Bureau of Fiscal
Documentation (IBFD), and the Japan International Cooperation Agency (JICA). The
course was organised and implemented by ITCRI.
Collaborative Courses throughout 2014.
No. Courses Duration
IRBM-OECD: Taking Advantage Of The Mac And

1 17 – 21 February 2014
Automatic EOI
2 IRBM-OECD: Negotiation Of Tax Treaties 10 – 14 March 2014

No. Courses Duration
3 IRBM – OECD: Advanced Auditing MNEs 7 – 11 April 2014
LHDNM – IBFD: Anti-Money Laundering And Tax

4 14 – 18 April 2014
Evasion
5 IRBM – OECD: Advanced Auditing SMEs 5 – 9 May 2014
IRBM-MTCP- JICA Third Country Training

6 Programme For Cambodia, Lao Pdr And 2 – 13 June 2014
Myanmar - Tax Administrative Course
IRBM - CATA: Workshop On Taxation Of
7 9 – 27 June 2014
International Transactions (TOIT)
8 IRBM-CTIM: National Tax Conference (NTC) 12 – 13 August 2014
IRBM-MTCP: General Tax Administration

9 18 August – 5 September 2014
Course
10 IRBM – IBFD: Taxation Of Financial Markets 25 – 29 August 2014
11 LHDNM – KPM: Kem Cerdik Cukai 2014 8 – 12 September 2014
IRBM – OECD: Transfer Pricing Aspects Of

12 22 – 26 September 2014
Extractive Industry
IRBM-MTCP: Introduction To The Application 27 October – 7 November
13
And Negotiations Of Tax Treaties 2014
14 IRBM – OECD: Case Studies In Transfer Pricing 1 – 5 December 2014

HIGH PERFORMANCE
WORKING CULTURE
Implementation Of IRBM’s 2014 KPI
IRBM has implemented its 2014 performance measurement through IRBM KPI 2014 based
on five (5) strategic targets which contain ten (10) components; two (2) components on
tax collection and refund, two (2) components to measure compliancy achieved, one
(1) components measure enforcement function, another two (2) to gauge delivery of
services and two (2) other components to appraise operation cost. As a whole IRBM has
successfully achieved all ten (10) components of the predetermined KPI.
2014 KPI
Objectives Main Process 2014 KPI
Performance
Gross: Gross:
Tax collections
RM140.148 billion RM133.700 billion
Reduced Reduced
To collect Accounts Non 56.20% from ANR by 70.97% :
the right amount of Receivables (ANR) (RM8,365 million) RM5.937 billion
taxes due fairly and at 1/1/2014
equitably
Not exceeding
RM1.03 for every
Collection cost RM1.14 for
RM100.00 tax
efficiency every RM100 tax
collected
collected.
Company files Company files

(C/CS/TA/TC/ (C/CS/TA/TC/
TR): 12% from TR):17.37% from
567,662 active 567,662 active files:
files: 68,119 cases 98,615 cases
Individual files Individual files

(OG/D/TP/F/ (OG/D/TP/F/
FA/J): 22.53% from FA/J): 29.59% from
1,775,333 active 1,775,333 active
Audit (Field Audit files: 400,000 cases files: 525,349 cases
& Desk Audit)
To instil public trust Employment files Employment files
in the fairness and (SG): 20% (SG): 27.73%
excellence of the from 4,492,192 from 4,492,192
tax administration active files: active files:
system 898,438 cases 1,245,968 cases
PCB Employer:
PCB Employer: 11%
15.34% from
from 457,550 active
457,550 active files:
files: 50,331 cases
70,177 cases
No. of resolved Number of resolved

Investigation
cases: 554 cases cases: 689 cases
Solved 99.85%
Solved 94% of of refund
Refund
refund applications applications:
1,826,709 cases

2014 KPI
Objectives Main Process 2014 KPI
Performance
3.02% increase on 5.12% increase on
To widen the tax 7,292,737 active 7,292,737 active
All types of file
base files: files:
220,000 files 373,612 files
To modernise the
systems and work
IRBM’s electronic 2,800,000 tax return 3,300,078 tax return
procedures in
services e-Filing forms received forms received
accordance with
current needs
Implemented Implemented
94% from 277 MTA 87.7%from 277 MTA
Training
To produce training programs: training programs:
competent, 260 courses 243 courses
professional, At least 60% from At least 79.34%
integrity and 10,701 from 10,701
dedicated human Competency of
IRBM officers IRBM officers
capital IRBM’s personnel
achieve 56 achieve 56
hours of training: hours of training:
6421 staff 8,490 staff

Client Charter
IRBM is committed in enchancing the service delivery system on an ongoing basis and
providing fair and equitable treatment to customers in all affairs based on the following
standards:
Non -Con-
Conform to Achieved
No. Client Charter forming
Charter Status
Charter
To prepare current income Tax Return
Forms for :
• Individual taxpayers - by end of 100 0

1 February
• Non- Individual taxpayers - by end of 100 0

April
To provide electronic means of

2 submitting Income Tax Return Form 100 0
To refund overpaid income taxes for

complete and correctly-filled Income
Tax Return Forms within the following
time from the date of receipt :
3
• e-filing - 30 working days 98.95 1.05
• By mail or hand - 90 working days 99.12 0.88
To issue tax clearance certificates

4 within 10 working days of receipt of the 96.74 3.26
completed and relevant documents.
To act on property transfer instrument for

stamp duty assessments as follows :
• To submit Form PDS 15 for assessment 99.08 0.92

- 8 working days
• To issue the assessment notice upon 96.03 3.97

5 receipt of the evaluation report
- 8 working days
• To endorse Form KTN 14A upon 93.40 6.60

receipt of payment - 3 working days

To assess instruments other than property
transfer instruments for :
• Official assessments - 5 working days 99.97 0.03

6
• Unofficial assessments - 1 working day
limited to 30 instruments per
application
To resolve appeals/objections other

7 than Form Q within 60 days provided 90.99 9.01
complete information is received
To process Form Q for submission to the

Special Commissioner of Income Tax
8 within 5 months of receipt 77.22 22.78
Note:
Commencing from 1.1.2009, unofficial assessment have been cancelled according to the revised
Stamp Act 1949.
Indicator
More than 70%
50% - 70%
Less than 50%

AWARDS & RECOGNITIONS
LISTS OF AWARDS/ RECOGNITIONS
IRBM has received recognition through the ISO/IEC 27001:2005 and MS ISO/IEC 27001:2007
for the Information Security Management System For Operation Of e-Filing System scope at
the Data Centre IRBM, Cyberjaya by the SIRIM QAS International Sdn. Bhd.
The period for this certification is for a period of January 10th 2014 - September 30th 2015.
Date: January 10th 2014
The new record-holder in The Malaysia Book of Records under the category of LARGEST
CORAL PLANTING EVENT through the 2014 Marine CSR Program Manukan Island, Sabah.
With the strength of a total of 107 Professional Divers IRBM (Hasil Divers), 12 Professional
Divers from Sabah Parks and 10 Dive Masters, a total of 3040 coras have been successfully
grown in coral biodiversity Device.
CEO of IRBM YBhg. Kolonel (K) Tan Sri ‘ Dr. Hj. Mohd Shukor Hj. Mahfar has been invited
as the personality invitations at Teh Tarik Talk programme organised by Yayasan Inovasi
Malaysia (YIM). The programme with the title “SUPER CEO The Renaissance of the IRB” is a
recognition to the CEO for his leadership and innovation.
Inland Revenue Board of Malaysia (IRBM) and Universiti Utara Malaysia (UUM) has signed a
Memorandum of Understanding (MoU) to strengthen, promote and develop co-operation
between the two parties.
The MOU was signed by YBhg. Kolonel (K) Tan Sri Dr. Hj. Mohd Shukor Hj. Mahfar, Chief
Executive Officer of IRBM and Professor Dato’ Wira Dr. Mohamed Mustafa Ishak, Vice-
chancellor of UUM IRBM at the headquarters in Cyberjaya.
Date: February 5th 2014

IRBM has received recognition from SIRIM QAS International Sdn. Bhd. through MS ISO
9001:2008 for 2 scope, namely:
a) the process of preparing Individual Refund of employment in cases of e-Filing/e-Filing;

and
b) the implementation of the External Audit: Company (Focus Audit)
The certification process has been implemented at Headquarters and involves 4 branches
as the implementor of refund and the three (3) branches as the implementor for field audit.
The period for this certification is for the period February 28th 2014 - February 27th 2017.
Date: February 28th 2014
YBhg. Kolonel (K) Tan Sri Dr. Hj. Mohd Shukor Hj. Mahfar, CEO of Inland Revenue Board
Malaysia has been specially awarded for Service Excellence Award by Universiti Malaysia
Perlis (UniMAP).
The award was officially launched by DYTM Tuanku Syed Faizuddin Putra Ibni Tuanku Syed
Sirajuddin Jamalullail, Chancellor of UniMAP on March 19th 2014 in conjunction with Seri
Gemilang UniMAP Awards 2013.
This award is given to the CEO of IRBM in recognition of his contributions and his ideas in the
development as well as UniMAP’s development over the years.
Date: March 19th 2014
Inland Revenue Board of Malaysia has awarded as a recipient for 2012-2013 Corporate
Award-Public Sector, Category 1 from The Institute of Internal Auditors Malaysia in a
ceremony organised by the organisation. This prestigious award is given on a continuing
commitment by IRBM in Continuous Professional Development Programme for 2 years in a
row.
Date: March 21st 2014
United Nations Public Service Awards: 2014 (UNPSA 2014)

The nomination of the Assessment and Payment System (STAMPS) project under the
category of ‘Improving the Delivery of Services’, has succeeded to the final stage of
assessment for this prestigious award.
Although STAMPS are not selected as the project award winner, however the success over
the three (3) stages of evaluation, comprising of international experts panels, competing
with projects presented by other countries in the world is a distinctive recognition and
achievement by IRBM.
Date: May 14th 2014 (the date of the announcement of the results)

YBhg. Kolonel (K) Tan Sri Dr. Hj. Mohd Shukor Hj. Mahfar, CEO of IRBM has maintained his
position as the President of Statutory Bodies for the 2014-2016 session.
The success of maintaining this position by unanimous decision of the members of the
statutory bodies reflects their confidence in the leadership and vision of Tan Sri.
Date: June 21st 2014
Promoted as Honorary Kolonel: YBhg. Kolonel (K) Tan Sri Dr. Hj. Mohd Shukor Hj., CEO of IRBM
Entire Hasilian express sincere congratulations to YBhg. Kolonel (K) Tan Sri Dr. Hj. Mohd
Shukor Hj. Mahfar, CEO of IRBM in conjunction with the ceremony honorable army senior
officer rank promotion which was completed by the Hon. Minister of defence on July 1st
2014 at the Ministry of Defense (Mindef).
Date: July 1st 2014
CEO: Recipient Of The Honorary Doctor Of Management (UNITEN)
YBhg. Kolonel (K) Tan Sri Dr. Hj. Mohd Shukor Hj. Mahfar, CEO of IRBM was awarded the
Honorary Doctorate of Management by Universiti Tenaga Nasional (UNITEN) at the 17th
UNITEN’s Convocation.
This was a recognition for his contribution and excellence as the CEO in leading IRBM,
which has greatly helped the Government to drive the country towards realization of vision
2020: High-income developed Nation.
Date: August 17th 2014
1st Place Palm Potraits Photography Competition 2014
Mr. Jalias bin Ali, Executive Officer (Assessment) G41, State Director’s Office of Selangor
has won the 2014 Palm Potraits Photography Competition organised by Malaysian Palm
Oil Council (MPOC).
A total of 1500 entries involving participants from Malaysia, Philippines, Indonesia, the
United States and some other countries have been received by MPOC and Mr. Jalias has
won first place for the category People & Potraits who offered the gift of USD 3000.
Indeed, the success is very meaningful and also praise the name of IRBM
Date: September 4th 2014

2014 CAPAM International Innovations Awards Nomination (IIA)
Stamp Assessment and Payment System (STAMPS), which was nominated under the
category of ‘Innovative Use of Technology in the Public Service’, has managed to be
nominated in the semi-finals.
Although STAMPS is not selected as the project award winner, the success beyond semi-
finals and was selected as one of the 50 best project from 150 nominations received from
Commonwealth member countries is a distinctive recognition and achievement by IRBM.
Date: September 8th 2014
5 star rating (SSR) 2013-2014
Inland Revenue Board of Malaysia (IRBM) was awarded for the 5-Star Rating for star rating
Assessment (SSR) Public Sector agencies in 2013-2014 for category “Front-line Agencies”.
The award was made during the 2014 Public Sector Innovation Awards on October 9th 2014
(Thursday) and was officiated by YBhg. Tan Sri Dr. Ali Hamsa, The Chief Secretary.
Indeed, this award is a recognition of excellence among Hasilian in strengthening the

service delivery system to all IRBM’s customers, in line with the tagline HASiL Your Feel Good
Partner.
Date: October 9th 2014
CEO of IRBM, the recipient of the Most Eminent Brand Icon Leadership Award for Visionary
Icon Category-2014 Brand Laureate Awards
CEO has been awarded The Brand Laureate’s Most Eminent Brand Icon Leadership Award
2014 on a theme “I Did It My Way by Asia Pacific Brand Foundation (APBF)”, a reputable
body that recognizes The Best Brand including the aspects of Leadership for the Asia Pacific
region.
Date: November 6th 2014

The Appointment of IRBM in Industry Excellence Center (ICOE) Financial Services Cluster
IRBM has received a letter of appointment during the Launching of Financial Services
Cluster. The Annual Conference Of Industry Centre Of Excellence (ICOE) was held on
November 6th 2014 at Palm Garden Hotel IOI Resort City, Putrajaya.
Dikir Barat Mega Competition Among Malaysian statutory bodies 2014
IRBM has won in the 2014 Dikir Barat Mega Competitions among Malaysian Statutory
Bodies, Kelantan.
Sri Lubalang Hasil has managed to take home a cash prize of RM3,000, a trophy and
certificate of participation.
In addition, Sri Lubalang Hasil also won the best performance and the best category of
Best Tok Jogho won by Mohd Shabini bin Ibrahim.
Congratulations Hasilian: Chief Secretary Award (Management)
Innovative Creative Team from Cheras Branch ‘Ocean 10’ has successfully won the Chief
Secretary Award under the Management category during the Innovative and Creative
Convention (ICC) for Public Service of 31st National Level 2014.
Indeed this is a contribution of victory by Hasilian Cheras Branch to promote the image of
IRBM as a leading tax administrator.
Date: December 4th 2014

NATIONAL HIGHER EDUCATION FUND
CORPORATION AGENT (PTPTN)

COLLECTION OF PTPTN
Apart from collecting, assessing and enforcing ITA 1967 and other related acts, on July
1st 1997, IRBM was appointed as the collecting agent on behalf of the National Higher
Education Fund Corporation (PTPTN) and started collecting student’s loan’s repayment on
August 1st 1999.
Performance of Collecting Repayment of PTPTN:
Collecting Repayment of PTPTN
200,000,000
147.22 152.30
150,000,000
100,000,000
50,000,000
62,937 64,046
0
2014 2013
Collection (RM million)
No. of Payers
Payment instruments for PTPTN loan repayment in 2014 are as follow:
Type RM
Cash 357,738
Cheque/Bank Draft 41,477,440
Remittance 41,043
Postal Order 19,701
Money Transfer 105,328,525
TOTAL 147.22 million

3.0
1MALAYSIA PEOPLE’S AID (BR1M) 3.0

1MALAYSIA PEOPLE’S AID (BR1M)
The 1Malaysia People’s Aid (BR1M) programme was announced by the Prime Minister for
its 3rd year implementation during the bill of supply (2014 budget speech) on October 25th
2013.
BR1M programme is spearheaded by the Ministry of Finance (MOF), and IRBM was duly
appointed as the implementing agency. IRBM is responsible for registration and processing
of applications for approximately 8.1 million application. BR1M registration started on
December 23rd 2013 till January 31st 2014 while BR1M appeals received by IRBM began on
April 1st 2014 to May 31st 2014 has been extended up till June 30th 2014.
To ensure this programme ran smoothly, IRBM has collaborated well with other government
agencies for applicants’ information verification purposes. IRBM also seek help from Pos
Malaysia Data Service Berhad for printing out forms and delivery of BR1M 2014 notification
letters to applicants.
For those who did not report any registered bank accounts, BR1M vouchers distribution
made at the voucher-giving ceremony is extended by State Secretary and JPP offices
nationwide. BR1M vouchers can be cashed in at any selected four (4) banks appointed
by MoF, which are Maybank, CIMB Bank, Public Bank and Bank Simpanan Nasional. Mobile
counters were also operated during the voucher-giving ceremony. However IRBM is not
involved in the payment processes.
In the success of BR1M, IRBM is fully utilised with professional and credibility and internal
experiences with the involvement of crucial departments such Tax Operational Department,
Information Technology Department, Procument and Asset Department, Human Resource
Department, Finance Department and Corporate Services Department. The enforcement
of BR1M is fully aided by State Director’s Offices, IRBM branches, Revenue Services Centre
and Urban Transformation Centre (UTC) nationwide.
Approximately 6,966,182 or 86% from 8.1 million applications received are qualified to
receive BR1M. BR1M registration and processes are definitely different from IRBM’s core
business; to collect revenue for the government. However, in this context, IRBM has
successfully capable in managing BR1M especially in fulfilling the expectations of those in
the low income group.

BR1M Application Status
10,000,000
8,113,287
8,000,000
6,491,204
6,000,000
4,000,000
2,000,000 1,147,105
474,978
0
Applications Applications Approved UnApproved
Received Approved Appeal
Eligible Amount Of BR1M
3,934,768
4,000,000
3,500,000
3,000,000
2,500,000 2,198,902
2,000,000
1,500,000
1,000,000
500,000 343,910 357,534
19,026 112,042
0
RM 650 RM 450 RM 300
Approved Applications
Approved Appeal

IRBM DIRECTORY
IRBM DIRECTORY
HEADQUARTERS
JOHOR
JOHOR BAHRU BRANCH

HEADQUARTERS INLAND REVENUE BOARD OF MALAYSIA
INLAND REVENUE BOARD OF MALAYSIA JOHOR BAHRU BRANCH
HASIL TOWER, LEVEL 18 HASIL TOWER
PERSIARAN RIMBA PERMAI NO. 1 JALAN PADI EMAS 1
CYBER 8 BANDAR BARU UDA
63000 CYBERJAYA 81200 JOHORE BAHRU
SELANGOR
MALAYSIAN TAX ACADEMY KLUANG BRANCH

PERSIARAN WAWASAN INLAND REVENUE BOARD OF MALAYSIA
43650 BANDAR BARU BANGI KLUANG BRANCH
SELANGOR NO. 11, LEVEL 2-7
WISMA BUNGA, JALAN LAMBAK
MALAYSIAN TAX ACADEMY KUCHING P.O BOX 523
JALAN TABUAN 86009 KLUANG, JOHOR
93200 KUCHING
SARAWAK
MUAR BRANCH
JABATAN CUKAI KORPORAT INLAND REVENUE BOARD OF MALAYSIA
INLAND REVENUE BOARD OF MALAYSIA MUAR BRANCH
TINGKAT 7, BLOK 11 WISMA TIAM LOCK
KOMPLEKS BANGUNAN KERAJAAN NO. 19-4, JALAN SUNGAI ABONG
JALAN DUTA 84000 MUAR
KARUNG BERKUNCI 11035 JOHOR
50990 KUALA LUMPUR
BATU PAHAT REVENUE SERVICES CENTRE
INFORMATION PROCESSING CENTRE INLAND REVENUE BOARD OF MALAYSIA
INLAND REVENUE BOARD OF MALAYSIA BATU PAHAT REVENUE SERVICES CENTRE
HASIL TOWER NO. 6 & 6A, NO. 7 & 7A
NO. 3, JALAN 9/10 SEKSYEN 9, JALAN MOHD KHALID
43650 BANDAR BARU BANGI OFF JALAN ABU BAKAR
SELANGOR 83000 BATU PAHAT
JOHOR
CUSTOMER SERVICE CENTER
INLAND REVENUE BOARD OF MALAYSIA
HASIL TOWER SEGAMAT REVENUE SERVICES CENTRE
PJ TRADE CENTRE INLAND REVENUE BOARD OF MALAYSIA
LEVEL 8 & 9 SEGAMAT REVENUE SERVICES CENTRE
NO.8, JALAN PJU 8/8A NO.1 GROUND FLOOR
BANDAR DAMANSARA PERDANA JALAN MUHIBBAH 2
47820 PETALING JAYA TAMAN MUHIBBAH
SELANGOR 85000 SEGAMAT
JOHOR
CUSTOMER SERVICE CENTER KUCHING
HASIL TOWER, LEVEL 14,
NO. 1, JALAN PADUNGAN
93100 KUCHING
SARAWAK

KEDAH KELANTAN
ALOR SETAR BRANCH KOTA BHARU BRANCH

INLAND REVENUE BOARD OF MALAYSIA INLAND REVENUE BOARD OF MALAYSIA
ALOR SETAR BRANCH KOTA BHARU BRANCH
HASIL TOWER HASIL TOWER
KOMPLEKS PENTADBIRAN KERAJAAN JALAN SULTANAH ZAINAB
PERSEKUTUAN, 15600 KOTA BHARU
BANDAR MUADZAM SHAH KELANTAN
06550 ANAK BUKIT
KEDAH DARUL AMAN TANAH MERAH REVENUE SERVICE CENTRE
SUNGAI PETANI BRANCH TANAH MERAH REVENUE SERVICES CENTRE
INLAND REVENUE BOARD OF MALAYSIA LOT G-1 & 1-1, JALAN TASIK
SUNGAI PETANI BRANCH BANDAR TANAH MERAH
HASIL TOWER 17500 TANAH MERAH
JALAN LENCONGAN TIMUR KELANTAN
BANDAR AMAN JAYA
08000 SUNGAI PETANI
KEDAH MELAKA
KULIM REVENUE SERVICES CENTRE MELAKA BRANCH

KULIM REVENUE SERVICES CENTRE MELAKA BRANCH
NO.12, GROUND & 1ST FLOOR HASIL TOWER MELAKA
KULIM BUSINESS PARK MITC, HANG TUAH JAYA
JALAN TUNGKU ASAAD 75450 AYER KEROH
SEKSYEN 6 MELAKA
09000 KULIM
KEDAH
JASIN REVENUE SERVICES CENTRE
LANGKAWI REVENUE SERVICES CENTRE JASIN REVENUE SERVICES CENTRE
INLAND REVENUE BOARD OF MALAYSIA JA 9968, GROUND FLOOR
LANGKAWI REVENUE SERVICES CENTRE BANDAR JASIN 3
LOT 59, LEVEL 1 77000 JASIN
KOMPLEKS PEKAN RABU MELAKA
KUAH
07000 LANGKAWI ALOR GAJAH REVENUE SERVICES CENTRE
KEDAH INLAND REVENUE BOARD OF MALAYSIA
ALOR GAJAH REVENUE SERVICES CENTRE
MP 5, JALAN PENGKALAN INDAH 2 UTAMA
TAMAN PENGKALAN INDAH
78000 ALOR GAJAH
MELAKA

NEGERI SEMBILAN BENTONG REVENUE SERVICES CENTRE
BENTONG REVENUE SERVICES CENTRE
SEREMBAN BRANCH NO. 13 & 14
INLAND REVENUE BOARD OF MALAYSIA BENTONG POINT BUSINESS CENTRE
SEREMBAN BRANCH JALAN TRAS,
ZURICH TOWER, LEVEL 15-23 28700 BENTONG
NO.1 JALAN LINTANG PAHANG
70200 SEREMBAN
NEGERI SEMBILAN
JERANTUT REVENUE SERVICES CENTRE
TAMPIN REVENUE SERVICES CENTRE JERANTUT REVENUE SERVICES CENTRE
INLAND REVENUE BOARD OF MALAYSIA NO. 39, GROUND FLOOR
TAMPIN REVENUE SERVICES CENTRE JALAN INDERAPURA 2
LOT. A-1-4 AND LOT. A-1-5 BANDAR INDERAPURA
TAMPIN SQUARE 27000 JERANTUT
73000 TAMPIN, PAHANG
NEGERI SEMBILAN
KUALA PILAH REVENUE SERVICES CENTRE PERAK

KUALA PILAH REVENUE SERVICES CENTRE
LEVEL 2, IPOH BRANCH
BANGUNAN TABUNG HAJI, INLAND REVENUE BOARD OF MALAYSIA
LOT 234, JALAN DATO’ UNDANG JOHOL, IPOH BRANCH
72000 KUALA PILAH, HASIL TOWER
NEGERI SEMBILAN NO. 128 JALAN TAMBUN
P.O BOX 250
30906 IPOH
PAHANG PERAK
KUANTAN BRANCH
INLAND REVENUE BOARD OF MALAYSIA TELUK INTAN BRANCH
KUANTAN BRANCH INLAND REVENUE BOARD OF MALAYSIA
LEVEL 4-6 TELUK INTAN BRANCH
BANGUNAN KUANTAN CENTRE POINT BLOK B & C
JALAN HAJI ABDUL RAHMAN KOMPLEKS PERNIAGAAN SKOMK
25600 KUANTAN LOT 956 & 957, JALAN MAHKAMAH
PAHANG PETI SURAT 82
36000 TELUK INTAN
PERAK
RAUB BRANCH
INLAND REVENUE BOARD OF MALAYSIA TAIPING BRANCH
RAUB BRANCH INLAND REVENUE BOARD OF MALAYSIA
NO. 5-9, TAMAN PERMAI TAIPING BRANCH
JALAN TRAS HASIL TOWER
27600 RAUB LOT 360 & 2051
PAHANG JALAN KOTA
PETI SURAT 91
TEMERLOH BRANCH 34008 TAIPING
INLAND REVENUE BOARD OF MALAYSIA PERAK
TEMERLOH BRANCH
NO.16-30, JALAN PAK SAKO 3
BANDAR SERI SEMANTAN MANJUNG REVENUE SERVICES CENTRE
28000 TEMERLOH INLAND REVENUE BOARD OF MALAYSIA
PAHANG MANJUNG REVENUE SERVICES CENTRE
NO. 16 & 17
JALAN SM1C/15
FASA 1C4, BANDAR BARU
32040 SRI MANJUNG
PERAK

PERLIS TAWAU BRANCH
TAWAU BRANCH
KANGAR BRANCH HASIL TOWER
INLAND REVENUE BOARD OF MALAYSIA 66, JALAN MESRA
KANGAR BRANCH OFF KM 2, JALAN KUHARA
HASIL TOWER PETI SURAT 44
PERSIARAN JUBLI EMAS 91009 TAWAU
01000 KANGAR SABAH
PERLIS
SANDAKAN BRANCH
PENANG INLAND REVENUE BOARD OF MALAYSIA
SANDAKAN BRANCH
HASIL TOWER
PENANG BRANCH BATU 7, JALAN PERSEKUTUAN A
OFF JALAN LABUK
PENANG BRANCH
PETI SURAT 1350
LEVEL 3-10
90714 SANDAKAN
BANGUNAN DEWAN PERNIAGAAN MELAYU
SABAH
LEBUH PANTAI, P.O BOX 660
10910 PULAU PINANG.
KUDAT REVENUE SERVICE CENTRE
BUKIT MERTAJAM BRANCH KUDAT REVENUE SERVICES CENTRE
LOT 3A, JAYA SHOPPING CENTRE
BUKIT MERTAJAM BRANCH
89057 KUDAT
NO. 20, LORONG PERDA SELATAN 2
SABAH
BANDAR PERDA
14000 BUKIT MERTAJAM
PULAU PINANG. LAHAD DATU REVENUE SERVICE CENTRE
LAHAD DATU REVENUE SERVICES CENTRE
SEBERANG PERAI REVENUE SERVICE CENTRE LOT G-3, TINGKAT BAWAH
BANGUNAN PLAZA USIA
SEBERANG PERAI REVENUE SERVICES CENTRE
JALAN TERATAI
NO. 59, JALAN DAGANGAN 2
91100 LAHAD DATU
PUSAT BANDAR BERTAM PERDANA
SABAH
13200 KEPALA BATAS
PULAU PINANG
SARAWAK
SABAH
KUCHING BRANCH
KOTA KINABALU BRANCH KUCHING BRANCH
INLAND REVENUE BOARD OF MALAYSIA ARAS 17, HASIL TOWER
KOTA KINABALU BRANCH NO. 1, JALAN PADUNGAN
HASIL TOWER 93100 KUCHING
JALAN TUNKU ABDUL RAHMAN SARAWAK
88600 KOTA KINABALU,
SABAH MIRI BRANCH
KENINGAU BRANCH MIRI BRANCH
INLAND REVENUE BOARD OF MALAYSIA HASIL TOWER
KENINGAU BRANCH LOT 2996, JALAN ADENIUM
BLOK H, LOT 68-72 TAMAN MDL
KOMPLEKS PERNIAGAAN ADIKA 98000 MIRI
JALAN MASAK , PETI SURAT 1721 SARAWAK
89008 KENINGAU
SABAH

BINTULU BRANCH SELANGOR
BINTULU BRANCH
WISMA DESTINY SHAH ALAM BRANCH
PARKCITY COMMERCE SQUARE INLAND REVENUE BOARD OF MALAYSIA
JALAN TUN AHMAD ZAIDI SHAH ALAM BRANCH
97000 BINTULU 9-13th FLOOR
SARAWAK PLAZA PERANGSANG
PERSIARAN PERBANDARAN
SIBU BRANCH 40000 SHAH ALAM
INLAND REVENUE BOARD OF MALAYSIA SELANGOR
SIBU BRANCH
WISMA VASTY KLANG BRANCH
NO. 15 JALAN PULAU INLAND REVENUE BOARD OF MALAYSIA
96000 SIBU KLANG BRANCH
SARAWAK FIRST TOWER
1st & 9-18th FLOOR
JALAN MERU
LIMBANG REVENUE SERVICES CENTRE 41050 KLANG
INLAND REVENUE BOARD OF MALAYSIA SELANGOR
LIMBANG REVENUE SERVICES CENTRE
LOT 1286, BANGUNAN LAKIL
JALAN WONG TSAP EN PETALING JAYA BRANCH
98700 LIMBANG INLAND REVENUE BOARD OF MALAYSIA
SARAWAK PETALING JAYA BRANCH
HASIL TOWER
PJ TRADE CENTRE,
MUKAH REVENUE SERVICES CENTRE NO 8, JALAN PJU 8/8A
INLAND REVENUE BOARD OF MALAYSIA BANDAR DAMANSARA PERDANA
MUKAH REVENUE SERVICES CENTRE 47820 PETALING JAYA
SUBLOT 51 (1207) LOT 924 & 927 SELANGOR
MUKAH LAND DISTRICT
96400 MUKAH
SARAWAK TERENGGANU
SRI AMAN REVENUE SERVICES CENTRE KUALA TERENGGANU BRANCH

SRI AMAN REVENUE SERVICES CENTRE KUALA TERENGGANU BRANCH
NO. 31, JALAN HOSPITAL WISMA PERMINT
95000 SRI AMAN JALAN SULTAN ISMAIL
SARAWAK PETI SURAT 65
20916 KUALA TERENGGANU
TERENGGANU
SARIKEI DUTY STAMPS CENTRE
SARIKEI DUTY STAMPS CENTRE KEMAMAN REVENUE SERVICE CENTRE
D/A PEJABAT DAERAH SARIKEI TINGKAT 8, INLAND REVENUE BOARD OF MALAYSIA
WISMA JUBLI MUTIARA KEMAMAN REVENUE SERVICES CENTRE
JALAN BERSATU LOT 13703, TAMAN CHUKAI UTAMA
96100 SARIKEI 24000 KEMAMAN
SARAWAK TERENGGANU
LAWAS DUTY STAMPS CENTRE BESUT REVENUE SERVICE CENTRE

LAWAS DUTY STAMPS CENTRE BESUT REVENUE SERVICES CENTRE
D/A PEJABAT DAERAH LAWAS NO. 1A & 1B, PERKEDAIAN 1 TINGKAT
JALAN GAYA MAJLIS DAERAH BESUT, PASAR KUALA BESUT
98850 LAWAS 22300 KUALA BESUT
SARAWAK TERENGGANU

FEDERAL TERRITORIES (KUALA HULU LANGAT REVENUE SERVICE CENTRE
LUMPUR) INLAND REVENUE BOARD OF MALAYSIA
HULU LANGAT REVENUE SERVICES CENTRE
NO. 73 LEVEL 3,
DUTA BRANCH KOMPLEKS PERHENTIAN KAJANG,
INLAND REVENUE BOARD OF MALAYSIA JALAN REKO
DUTA BRANCH 43000 KAJANG
GROUND FLOOR, 1 - 11, BLOK 8A SELANGOR
KOMPLEKS BANGUNAN KERAJAAN
JALAN DUTA
50600 KUALA LUMPUR CYBERJAYA REVENUE SERVICE CENTRE
CYBERJAYA reVENUE SERVICE CENTRE
KUALA LUMPUR PAYMENT CENTRE
HASIL TOWER, GROUND FLOOR
PERSIARAN RIMBA PERMAI
KUALA LUMPUR PAYMENT CENTRE
CYBER 8,
LEVEL 15, BLOK 8A
63000 CYBERJAYA
KOMPLEKS BANGUNAN KERAJAAN
SELANGOR
JALAN TUANKU ABDUL HALIM
50600 KUALA LUMPUR
NON RESIDENT BRANCH FEDERAL TERRITORIES (LABUAN)

NON RESIDENT BRANCH LABUAN BRANCH
3rd FLOOR, 6-8 BLOK 8 INLAND REVENUE BOARD OF MALAYSIA
KOMPLEKS BANGUNAN KERAJAAN LABUAN BRANCH
JALAN DUTA UNIT E.004 & E.005
JALAN TUANKU ABDUL HALIM 1ST FLOOR, ARAS PODIUM
50600 KUALA LUMPUR KOMPLEKS UJANA KEWANGAN
WILAYAH PERSEKUTUAN PUTRAJAYA JALAN MERDEKA
87000 W. P. LABUAN
KUALA LUMPUR BANDAR BRANCH
KUALA LUMPUR BANDAR BRANCH
LEVEL 8,9, 10, 11, 20 & 21
MENARA OLYMPIA
WISMA KWSG, JALAN KG. ATTAP
50200 KUALA LUMPUR.
CHERAS BRANCH
CHERAS BRANCH
LEVEL 8-12, MENARA PGRM
8, JALAN PUDU ULU, CHERAS
56100 KUALA LUMPUR
WANGSA MAJU BRANCH

WANGSA MAJU BRANCH
GROUND FLOOR, MEZZANINE & LEVEL 5-10,
KAUSAR TOWER
JALAN 3/27A, SEKSYEN 1
BANDAR BARU WANGSA MAJU
53300 KUALA LUMPUR

a
laysi
ri Ma
ge
m Ne
ala
lD
asi
ag aH
Lemb
HASiL DIARY
LAUNCHING CEREMONY
REVENUE SERVICE CENTRE
KUDAT
January 9th 2014
MEMORANDUM OF UNDERSTANDING
(MOU) CEREMONY BETWEEN IRBM AND
UUM
February 5th 2014

18TH HASIL DAY
March 3rd 2014
CEO TALK SHOW

April 29th 2014

2ND CONVOCATION
CEREMONY MALAYSIAN
TAX ACADEMY
May 20th 2014
LAUNCHING CEREMONY
BINTULU TOWER
June 13th 2014

DEPUTY MINISTER OF
FINANCE VISIT
July 22nd 2014
NATIONAL TAX
CONFERENCE (NTC)
August 21st 2014

KEM CERDIK
CUKAI
September 8-11th 2014
NATIONAL TAX
SEMINAR (NTS)
October 21st 2014

INNOVATION DAY
November 3rd 2014
REGIONAL INTEGRATION OF DIFFERENT

NATIONAL TAX SYSTEM CONFERENCE; THE EU
EXPERIENCES AND ITS LESSONS FOR ASEAN
December 15th 2014

C
R S
E H
A O
T W
I C
V A
E S
E
JANUARY
PROCUMENT AND ASSET

DEPARTMENT
C
R S
E H
A O
T W
I C
V A
E S
E
FEBRUARY
FINANCE DEPARTMENT

C
R S
E H
A O
T W
I C
V A
E S
E
MARCH
TAX POLICY DEPARTMENT
TAX RESEARCH DEPARTMENT
TAX MULTINATIONAL DEPARTMENT
C
R S
E H
A O
T W
I C
V A
E S
E
APRIL
CORPORATE TAX
DEPARTMENT

C
R S
E H
A O
T W
I C
V A
E S
E
MAY
INFORMATION TECHNOLOGY
DEPARTMENT
C
R S
E H
A O
T W
I C
V A
E S
E
JUNE
CORPORATE SERVICES DEPARTMENT
INTERNAL AUDIT DEPARTMENT
DEPARTMENT OF INTERNATIONAL
TAXATION

C
R S
E H
A O
T W
I C
V A
E S
E
JULY
HUMAN MANAGEMENT
DEPARTMENT
C
R S
E H
A O
T W
I C
V A
E S
E
AUGUST
LEGAL DEPARTMENT
INSPECTORATE & INTEGRITY DEPARTMENT
PETROLEUM DIVISION

C
R S
E H
A O
T W
I C
V A
E S
E
SEPTEMBER
REVENUE COLLECTION DEPARTMENT,
INVESTIGATION DEPARTMENT
DISPUTE RESOLUTION DEPARTMENT
C
R S
E H
A O
T W
I C
V A
E S
E
NOVEMBER
MALAYSIAN TAX ACADEMY

C
R S
E H
A O
T W
I C
V A
E S
E
DECEMBER
INFORMATION PROCESSING
DEPARTMENT

FINANCIAL STATEMENT
LEMBAGA HASIL DALAM NEGERI MALAYSIA
(Ditubuhkan Mengikut AKTA LEMBAGA HASIL DALAM NEGERI MALAYSIA 1995)
BALANCE SHEET
AS AT 31 DECEMBER 2014
2014 2013
Notes RM RM
PROPERTY, PLANT AND EQUIPMENT 3 1,465,756,936 1,333,501,773

WORK IN PROGRESS 4 41,992,509 275,054,409
LOANS TO EMPLOYEES 5 1,582,341 1,394,589
1,509,331,786 1,609,950,771
CURRENT ASSETS
Loans to Employees 5 598,925 544,205
Deposit and Prepayment 6 8,556,363 7,231,606
Payment Of Advances 7 144,149 182,096
Other Debtors 8 246,610 797,726
Accrued Interest On Investment 389,877 669,973
Fixed Deposits and Short Term Investment 9 331,000,000 330,000,000
Cash and Bank Balances 17,848,984 3,724,739
TOTAL CURRENT ASSETS 358,784,908 343,150,345
CURRENT LIABILITIES
Sundry Creditors 10 98,039,446 23,790,388
Term Loans 11 31,599,764 31,599,764
Finance Lease 12 2,369,917 -
Deposit 13 5,125,473 3,430,730
Provision For Doubtful Debts 665 -
Provision For Audit Fees 80,344 80,344
TOTAL CURRENT LIABILITIES 137,215,609 58,901,226
NET CURRENT ASSETS 221,569,299 284,249,119
1,730,901,085 1,894,199,890
Nota-nota di muka surat 115 hingga 141 merupakan sebahagian asas Penyata Kewangan ini.
The accompanying on pages 8 to 34 are in integral part of the Financial Statement.

BALANCE SHEET
AS AT 31 DECEMBER 2014
2014 2013
Nota RM RM
FUNDED BY:
Development Fund 14 853,281,529 865,526,415
Trust Fund 15 2,888,089 2,860,717
Other Fund 16 36,000,000 36,000,000
Asset Valuation Reserve 17 281,646,880 281,646,880
Accumulated Surplus 18 530,564,476 660,153,730
1,704,380,974 1,846,187,742
LONG TERM LIABILITIES

Term Loans 11 16,412,384 48,012,148
Finance Lease 12 10,107,727 -
26,520,111 48,012,148
1,730,901,085 1,894,199,890
4
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
2014 2013
Nota RM RM
Revenue 19 1,868,220,776 1,935,839,383
Other Operating Income 20 1,681,304 500,219

Staff Cost 21 (1,243,947,990) (1,328,213,935)
Depreciation / Impairment Loss Of Property,
Plant And Equipment 3 (111,623,266) (73,647,669)
Other Operating Expenditure 22 (645,421,720) (488,973,279)

Surplus / (Deficit) From Operations (131,090,896) 45,504,719
Finance Cost (15,559,783) (16,442,172)
Income From Investment And Loans 17,061,425 11,793,356
Current Year Surplus / (Deficit) (129,589,254) 40,855,903

STATEMENT OF CHANGES IN EQUITY

Asset
Development Trust Other Valuation Accumulated
Fund Fund Fund Reserve Surplus Total
RM RM RM RM RM RM
Balance
As At
1 Jan 2014 865,526,415 2,860,717 36,000,000 281,646,880 660,153,730 1,846,187,742
Current
Surplus /
(Deficit) (12,244,886) 27,372 - - (129,589,254) (141,806,768)
Land
Valuation - - - - - -
Building
Valuation
- - - - - -
Balance
As At
31 Dec
2014 853,281,529 2,888,089 36,000,000 281,646,880 530,564,476 1,704,380,974
Balance
As At
1 Jan 2013 856,659,122 3,793,808 36,000,000 74,256,465 619,297,827 1,590,007,222
Current
Surplus /
(Deficit) 8,867,293 (933,091) - - 40,855,903 48,790,105
Land
Valuation - - - 50,995,859 - 50,995,859
Building
Valuation
- - - 156,394,556 - 156,394,556
Balance
As At
31 Dec
2013 865,526,415 2,860,717 36,000,000 281,646,880 660,153,730 1,846,187,742
6
CASH FLOW STATEMENT

2014 2013
Nota RM RM
CASH FLOW FROM OPERATING ACTIVITIES

Received From Federal Government and Other Income 23 1,707,781,120 2,011,747,391
Payment To Suppliers and Staffs 24 (1,737,890,663) (1,752,095,138)
NET CASH RECEIVED / (USED) IN
OPERATING ACTIVITIES (30,109,543) 259,652,253
CASH FLOW FROM INVESTING ACTIVITIES

Purchasing Of Property, Plant and Equipment including
(9,262,413) (70,694,436)
Work In Progress
Received from Disposal Of Property, Plant and Equipment 125,019 104,612
Income From Investment and Loans 17,341,521 11,232,985
Loans to Employees (242,473) (51,576)
INVESTING ACTIVITIES 7,961,654 (59,408,415)
CASH FLOW USED FROM FINANCING ACTIVITIES

Development Fund 71,542,427 60,575,862
Trust Fund 411,610 (609,741)
Payment Of Terms Loan (31,599,764) (34,099,763)
Finance Lease 12,477,644 -
Finance Cost Paid (15,559,783) (16,442,172)
FINANCING ACTIVITIES 37,272,134 9,424,186
Net Increase / (Decrease) In Cash 15,124,245 209,668,024
Cash And Cash Equivalents At The Beginning Of The Year 333,724,739 124,056,715
Cash And Cash Equivalents At The End Of The Year 348,848,984 333,724,739
CASH AND CASH EQUIVALENTS

Fixed Deposits and Short Term Investment 331,000,000 330,000,000
Cash and Bank Balances 17,848,984 3,724,739
348,848,984 333,724,739
Nota-nota
The di muka surat
accompanying 115 hingga
on pages 141
8 to 34 aremerupakan
in integralsebahagian
part of theasas Penyata
Financial Kewangan ini.
Statement.

NOTES TO THE FINANCIAL STATEMENT

1. CORPORATE REVIEW
1.1 Related Act and Function
Inland Revenue Board of Malaysia (IRBM) was incorporated on 1st

March 1996 under INLAND REVENUE BOARD OF MALAYSIA ACT
1995, (Act 533).
IRBM acts as an agent to the government and providing services related

to the administration, assessment, collection and enforcement on the
payment of income tax, tax on income from petroleum, real property
gain tax, tax on income from Labuan offshore business activity, stamp
duty, estate duty and others tax.
1.2 Presentation of Financial Statements and Validation
Financial Statements For The Year Ended December 31, 2014 were
presented and approved by resolution of the IRBM Board of Directors
on 21 August, 2015.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basic of Accounting
The accounts of IRBM have been prepared in accordance with:
i. The historical cost; and
ii. The approved accounting standards by Malaysian Accounting

Standards Boards (MASB), which is Private Entity Reporting
Standards (PERS).
8
2.2 Property, Plant and Equipment and
Property, plant and equipment are accounted at cost less any

accumulated depreciation and any accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition
of the assets. Cost of repair, maintenance and renovation should be
recognised as an expense in the period in which it is incurred.
Property, plant and equipment, which cost not less than RM1,000 per
unit, shall be capitalised. However carpet, curtain and related items
acquired irrespective the cost shall not be capitalised.
Depreciation
Depreciation is calculated based on a straight-line method throughout

the estimated useful lives of the assets at the depreciation rates are as
follows:-
Land - Leasehold Period of lease

Building 2%-3%
Furniture and Fittings 20%
Motor Vehicles 20%
Computer 33.33%
Freehold Land and Work in Progress is not depreciated
The depreciation rate on purchase of completed building of which the

cost of land and building could not be specifically identified at the
acquisition stage will follow the depreciation rate of building which is at
2% per year.
At each balance sheet date, the residual values and useful lives of
assets are reviewed and adjusted if appropriate, and assets must be
assessed whether there is any indication of impairment.
Asset Revaluation
Revaluation on properties consisting of Land and Buildings will be made

once every five (5) years. Increases in carrying amounts arising from
revaluation are recognised in an asset revaluation reserve.
Decreases in carrying amounts that offset previous increases of the

same asset are recognised in the asset revaluation reserve. All other
decreases in carrying amounts are recognised in the income statement.

Revaluation surplus is transferred directly to accumulated surplus when

the asset is retired or disposed of. Revaluation date is deemed at
balance sheet date.
2.3 Impairment of Assets
Assets that are subject to amortisation are reviewed for impairment

whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable.
An Impairment Loss is recognised for the amount by which the carrying

amount of the asset exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and value
in use.
An Impairment Loss is charged to the Income Statement. In respect of

other assets, any subsequent increase in recoverable amount is
recognised in the Income Statement unless it reverses an impairment
loss on a revalued asset in which case it is taken to Revaluation Surplus.
2.4 Finance Lease

Leases in which the IRBM bears the risk and rewards of ownership are
classified as finance leases.
Property, plant and equipment held under finance leases are capitalized
and depreciated like any other assets as described in Note 2.2. The
corresponding obligations related to principal payments are accounted
for as liability and finance charges are charged to the income statement
over the period of the lease plan.
2.5 Loans To Employees
Loans to employees are stated at cost. Bad debt is written off in the
period in which they are identified. An estimate is made for doubtful
debts based on review of all outstanding amounts at year-end.
2.6 Debtors
Debtors are stated at cost less provision for doubtful debts.
10
2.7 Creditors
Creditors are stated at cost which is the fair value of the consideration
to be paid in the future for goods and services received.
2.8 Term Loans
Term loans are stated at cost.
2.9 Recognition of Received From Federal Government
i. Development Fund
Development fund provided by Federal Government for

financing the cost of development project is recognised as an
income in the Income Statement (Development Fund) in the year
it is incurred.
Federal Government Grant relating to the financing of capital

expenditures will be recognised as a deferred income and are
credited / charged to income statement based on depreciation
value of the asset for the year.
ii. Conveyance Loan Fund
Conveyance Loan Grant received from Federal Government for

financing the conveyance loan will be credited to the
Conveyance Loan Fund.
iii. Computer Loan Fund
Computer Loan Grant received from the Federal Government for

financing computer loans to employees are credited to the
Computer Loan Fund
iv. Trust Fund
Trust Fund Grant received from Federal Government for the

purpose of financing the activities carried out by Malaysian Tax
Academy will be credited to the Trust Fund.
Federal Government Grant relating to the financing of capital

expenditures will be recognised as a deferred income and are
credited / charged to income statement based on depreciation
value of the asset for the year.
11

v. Investment Fund
Investment Grant received from Federal Government for

investment purpose will be credited to the Investment Fund.
2.10 Revenue Recognition
Federal Government grants are the main revenue received for financing
the cost of operations. Revenue is recognised on the accrual basis
except for interest income from Al-Mudharabah Scheme, Insurance
Syarikat Takaful Protection Scheme and profit on Disposal of Property,
Plant and Equipment are recognised as an income when the profit is
actually received.
2.11 Foreign Currency Transaction
Income Statement items in foreign currency are stated based on the

transaction date exchange rate. The exchange difference is recognised
in Income Statement.
2.12 Cash And Cash Equivalents
Cash and cash equivalents in the Cash Flow Statement have been
prepared based on the Direct Method. Cash and cash equivalents
comprised of short term investments, fixed deposits and cash.
2.13 Financial Risk Management Policies
The financial risk management policy is to be ascertain that IRBM has

sufficient financial sources for operations by the related risk
management purposes. IRBM carried out the operations based on
policies that have been approved by the Government and IRBM itself.
The major financial risks faced by IRBM and the policies related to
principal operating activities are as follows:
i. Interest Rate Risk
IRBM would try to obtain loan based on fixed rate to diminish the
increase of interest rate and hence reducing the interest rate risk.
12
ii. Credit Risk
Credit risk is controlled through credit approval procedure, limits

and observation. Internal examination on the credit will be done
if the risks are material.
iii. Liquidation and Cash Flow Risk
Liquidity risk management implies maintaining careful cash and

the availability of sufficient funds to meet the budget commitment
of operating expenses and financial liabilities.
2.14 Employee Benefits / Staff Retirement Benefits
Employee benefits / staff retirement benefits are as follows:
i. Short Term Retirement Benefits
Salaries and allowances are recognised as expenses in the

Income Statement in the year the employees rendered their
services to IRBM.
ii. Defined Contribution Plans
Contributions made to the Social Security Organisation are for

eligible employees.
Contribution is made to Employees Provident Fund (EPF) for the

staff under the IRBM Remuneration Scheme or to Retirement
Fund Incorporated for those in the pension scheme.
The contributions are recognised as an expense in the Income

Statement in the year the employees rendered their services to
IRBM except for the annual bonuses are recognised as
expenses when it is actually received.
13

iii. Long Term Retirement Benefits
The types of long-term benefits are recognised as an expense in

the Income Statement in the year occurs are as follows:
a) Medical benefit for retirees
b) Cash award in lieu of accumulated annual leave
c) Gratuity for retirees
LHDNM Board of Directors Meeting Vol. 3 Year 2013 on June

26, 2013, has approved gratuity for retirees under the IRBM
Remuneration Scheme. It is an extension of the approval
from the Federal Government with regard to the grant of the
gratuity to 7 Statutory Bodies With Separated Remuneration.
Gratuity payment includes two phases:
1) First Phase
Payment for retirees who retired from April 1, 2013 until

December 31, 2014.
2) Second Phase
Payment for retirees who retired from March 1, 1996 until

March 31, 2013.
14
3. PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT - TOTAL
Motor Furniture &

Land Building Vehicles Fittings Computer Total
RM RM RM RM RM RM
Cost
Balance As At 1 Jan 2014 190,890,580 1,041,977,196 35,804,600 48,908,688 295,644,328 1,613,225,392
Additions 90,605 - 14,597,863 2,008,919 225,380 16,922,767
Disposals - - (1,111,402) (2,029,947) (6,348,215) (9,489,564)

- - 1,152,958 4,521,774 1,959,961 7,634,693
Adjustment
Transfer from Work In Progress 1,903,118 132,925,569 - 2,363,478 83,570,225 220,762,390

- - - - - -
Revaluation/Impairment Loss
Balance As At 31 Dec 2014 192,884,303 1,174,902,765 50,444,019 55,772,912 375,051,679 1,849,055,678
Accumulated Depreciation
Balance As At 1 Jan 2014 - - 32,821,242 34,230,975 212,671,402 279,723,619
Current Year Charge 807,122 24,041,057 2,637,649 4,220,085 79,917,353 111,623,266
Disposals - - (1,111,382) (2,018,084) (6,324,599) (9,454,065)
Adjustment - - 58,158 1,319,054 28,710 1,405,922
Revaluation/Impairment Loss - - - - - -
Balance As At 31 Dec 2014 807,122 24,041,057 34,405,667 37,752,030 286,292,866 383,298,742
Net Book Value
Balance As At 31 Dec 2014 192,077,181 1,150,861,708 16,038,352 18,020,882 88,758,813 1,465,756,936
Cost
Balance As At 1 Jan 2013
142,238,624 598,454,597 34,035,937 43,380,548 297,449,065 1,115,558,771
Additions
- - 1,994,934 2,487,294 2,552,428 7,034,656
Disposals
- - (226,271) (1,435,412) (8,936,890) (10,598,573)
Adjustment
(4,317,457) (83,763,804) - 754,144 321,268 (87,005,849)
Transfer from Work In Progress
1,973,552 370,891,848 - 3,722,114 4,258,457 380,845,971
50,995,859 156,394,556 - - - 207,390,415
Balance As At 31 Dec 2013
190,890,580 1,041,977,196 35,804,600 48,908,688 295,644,328 1,613,225,392
3,363,216 65,716,668 32,214,159 30,832,855 171,878,113 304,005,011
Current Year Charge
480,173 18,521,204 833,348 4,121,472 49,691,472 73,647,669
Disposals
- - (226,265) (1,418,010) (8,935,311) (10,579,586)
Adjustment
(10,933) 10,933 - 694,659 37,126 731,785
(3,832,456) (84,248,805) - - - (88,081,261)
- - 32,821,242 34,230,975 212,671,402 279,723,619
Net Book Value

Balance As At 31 Dec 2013 190,890,580 1,041,977,196 2,983,358 14,677,713 82,972,926 1,333,501,773
15

3.1. PROPERTY, PLANT AND EQUIPMENT - OPERATION FUND
Furniture
Land Building Motor Vehicles & Fitting Computer Total
RM RM RM RM RM RM
Cost
Balance As At 1 Jan 2014 129,088,452 566,088,434 35,804,600 37,004,801 51,274,321 819,260,608
Additions 90,605 - 14,597,863 1,831,040 225,380 16,744,888
Disposals - - (1,111,402) (1,992,807) (3,402,226) (6,506,435)
Adjustment (90,605) - 1,152,958 2,162,951 71,356 3,296,660
1,903,118 - - 58,464 8,160 1,969,742
Balance As At 31 Dec 2014 130,991,570 566,088,434 50,444,019 39,064,449 48,176,991 834,765,463
Balance As At 1 Jan 2014 - - 32,821,242 28,787,542 36,618,760 98,227,544
Current Year Charge 483,185 13,999,168 2,637,649 1,982,235 8,349,478 27,451,715
Disposals - - (1,111,382) (1,981,011) (3,379,246) (6,471,639)
Adjustment - - 58,158 1,338,940 (6,243) 1,390,855
Balance As At 31 Dec 2014 483,185 13,999,168 34,405,667 30,127,706 41,582,749 120,598,475
Net Book Value

Balance As At 31 Dec 2014 130,508,385 552,089,266 16,038,352 8,936,743 6,594,242 714,166,988
Cost
109,643,937 475,086,001 34,035,937 35,023,862 56,687,105 710,476,842
Additions
- - 1,994,934 2,239,346 2,039,628 6,273,908
Disposals
- - (226,271) (1,406,407) (5,198,636) (6,831,314)
Adjustment
(2,916,133) (32,595,066) - 875,896 (3,134,694) (37,769,997)
1,973,552 - - 272,104 880,918 3,126,574
20,387,095 123,597,500 - - - 143,984,595
129,088,452 566,088,434 35,804,600 37,004,801 51,274,321 819,260,608
2,102,717 54,748,541 32,214,159 26,798,392 33,494,110 149,357,919
Current Year Charge
339,348 9,563,491 833,348 2,598,592 8,280,971 21,615,750
Disposals
- - (226,265) (1,393,790) (5,197,891) (6,817,946)
Adjustment
(10,933) 10,933 - 784,348 41,570 825,918
(2,431,132) (64,322,965) - - - (66,754,097)
- - 32,821,242 28,787,542 36,618,760 98,227,544
Net Book Value

Balance As At 31 Dec 2013 129,088,452 566,088,434 2,983,358 8,217,259 14,655,561 721,033,064
16

3.2. PROPERTY, PLANT AND EQUIPMENT - DEVELOPMENT FUND

Motor Furniture
Land Building Vehicles & Fittings Computer Total
RM RM RM RM RM RM
Cost
Balance As At 1 Jan 2014 61,802,128 475,888,762 - 10,889,942 243,750,864 792,331,696
Additions - - - - - -
Disposals - - - (31,500) (2,922,750) (2,954,250)
Adjustment 90,605 - - 2,360,123 1,888,605 4,339,333
- 132,925,569 - 2,305,014 83,562,065 218,792,648
Balance As At 31 Dec 2014 61,892,733 608,814,331 - 15,523,579 326,278,784 1,012,509,427
Balance As At 1 Jan 2014 - - - 5,002,809 175,836,394 180,839,203

Current Year Charge 323,937 10,041,889 - 2,037,427 71,384,060 83,787,313
Disposals - - - (31,498) (2,922,121) (2,953,619)
Adjustment - - - (19,886) 34,953 15,067
Balance As At 31 Dec 2014 323,937 10,041,889 - 6,988,852 244,333,286 261,687,964
Net Book Value

Balance As At 31 Dec 2014 61,568,796 598,772,442 - 8,534,727 81,945,498 750,821,463
Cost
Balance As At 1 Jan 2013 32,594,687 123,368,596 - 7,589,439 240,655,617 404,208,339

Additions - - - - - -
Disposals - - - (27,755) (3,738,254) (3,766,009)
Adjustment (1,401,324) (51,168,738) - (121,752) 3,455,962 (49,235,852)
Transfer from Work In Progress - 370,891,848 - 3,450,010 3,377,539 377,719,397
Revaluation/Impairment Loss 30,608,764 32,797,056 - - - 63,405,820

Balance As At 31 Dec 2013 61,802,128 475,888,762 - 10,889,942 243,750,864 792,331,696
Balance As At 1 Jan 2013 1,260,499 10,968,127 - 3,767,041 138,317,091 154,312,758

Current Year Charge 140,825 8,957,713 - 1,348,866 41,261,165 51,708,569
Disposals - - - (23,408) (3,737,420) (3,760,828)
Adjustment - - - (89,689) (4,444) (94,133)
Revaluation/Impairment Loss (1,401,324) (19,925,840) - - - (21,327,164)
Balance As At 31 Dec 2013 - - - 5,002,809 175,836,394 180,839,203
Net Book Value

61,802,128 475,888,762 - 5,887,133 67,914,470 611,492,493
17

3.3. PROPERTY, PLANT AND EQUIPMENT - TRUST FUND
Motor Furniture
Land Building Vehicles & Fittings Computer Total
RM RM RM RM RM RM
Cost
Balance As At 1 Jan 2014 1,013,945 619,143 1,633,088
- - -
Additions - - - 177,879 - 177,879
Disposals (5,640) (23,239) (28,879)
- - -
Adjustment (1,300) - (1,300)
- - -
- - - - - -
- - - - - -
Balance As At 31 Dec 2014 1,184,884 595,904 1,780,788
- - -
Balance As At 1 Jan 2014 440,624 216,248 656,872

- - -
Current Year Charge 200,423 183,815 384,238
- - -
Disposals (5,575) (23,232) (28,807)
- - -
Adjustment
- - - - - -
- - - - - -
Balance As At 31 Dec 2014 635,472 376,831 1,012,303
- - -
Net Book Value

Balance As At 31 Dec 2014 - - - 549,412 219,073 768,485
Cost
- - - 767,247 106,343 873,590
Additions
- - - 247,948 512,800 760,748
Disposals
- - - (1,250) - (1,250)
Adjustment
- - - - - -
- - - - - -
- - - - - -
- - - 1,013,945 619,143 1,633,088
- - - 267,422 66,912 334,334
Current Year Charge
- - - 174,014 149,336 323,350
Disposals
- - - (812) - (812)
Adjustment
- - - - - -
- - - - - -
Balance As At 31 Dec 2013 - - - 440,624 216,248 656,872
Net Book Value

Balance As At 31 Dec 2013 - - - 573,321 402,895 976,216
18
4. WORK IN PROGRESS
Operation Development
Fund Fund Total
RM RM RM
Balance As At 1 Jan 2014 12,515,463 262,538,946 275,054,409
Additions 3,604,143 63,290,275 66,894,418
Transfer To Property, Plant and

Equipment (1,969,742) (218,792,648) (220,762,390)
Transfer To Development Fund - (80,257,770) (80,257,770)
Adjustment (940,888) 2,004,730 1,063,842

Balance As At 31 Dec 2014 13,208,976 28,783,533 41,992,509
Balance As At 1 Jan 2013 13,497,637 578,677,829 592,175,466
Additions 3,305,484 130,167,319 133,472,803
Transfer To Property, Plant and

Equipment (3,126,574) (377,719,397) (380,845,971)
Transfer To Development Fund - (68,395,086) (68,395,086)
Adjustment (1,161,084) (191,719) (1,352,803)
Balance As At 31 Dec 2013 12,515,463 262,538,946 275,054,409
19

5. LOANS TO EMPLOYEES
Conveyance Computer Education

Land Loan Loan Others Loan Total
RM RM RM RM RM
Balance As At 1 Jan 2014 553,823 722,675 746,873 - 2,023,371

Loans To Employees 216,801 589,100 41,248 47,700 894,849
770,624 1,311,775 788,121 47,700 2,918,220
Less : Repayment Of Loans By
210,423 408,149 4,406 31,799 654,777
Staff
Balance As At 31 Dec 2014 560,201 903,626 783,715 15,901 2,263,443
Less : Provision for Doubtful
77,209 4,968 - - 82,177
Debts
482,992 898,658 783,715 15,901 2,181,266
Reconciliation for Provision Doubtful Debts as follows :
Balance As At 1 Jan 2014 79,609 4,968 - - 84,577

Provision Increased - - - - -
79,609 4,968 - - 84,577
Less:
2,400 - - - 2,400
Provision Recovered
Balance As At 31 Dec 2014 77,209 4,968 - - 82,177
Balance As At 1 Jan 2013 488,905 806,238 679,052 - 1,974,195

Loans To Employees 256,400 349,166 359,735 - 965,301
745,305 1,155,404 1,038,787 - 2,939,496
Less : Repayment Of Loans By
191,482 432,729 291,914 - 916,125
Staff
Balance As At 31 Dec 2013 553,823 722,675 746,873 - 2,023,371
Less : Provision for Doubtful
79,609 4,968 - - 84,577
Debts
474,214 717,707 746,873 - 1,938,794
Reconciliation for Provision Doubtful Debts as follows :
Balance As At 1 Jan 2013 82,009 4,968 - - 86,977

Provision Increased - - - - -
82,009 4,968 - - 86,977
Less:
2,400 - - - 2,400
Provision Recovered
Balance As At 31 Dec 2013 79,609 4,968 - - 84,577
Loans To Employees Shown In The:

2014 2013
RM RM
Non-Current Asset 1,582,341 1,394,589
Current Asset (Receivable within 12 months) 598,925 544,205
2,181,266 1,938,794
20

6. DEPOSIT AND PREPAYMENT

2014 2013
RM RM
Water Deposit 52,210 52,210

Electricity Deposit 754,470 741,900
Office Rental Deposit 79,790 67,920
Prepayment of Health Insurance Premium 1,328,226 250,462
Prepayment of Supply And Services 6,332,318 6,114,858
Sundry Prepayment 9,349 4,256
8,556,363 7,231,606
7. PAYMENT OF ADVANCES
Emolument Staff Others Total

RM RM RM RM
Balance
As At 1 Jan 2014 9,978 11,370 160,748 182,096
Advances 69,346 871,804 7,329,878 8,271,028

79,324 883,174 7,490,626 8,453,124
Less:
Repayment of
Advance 58,295 819,598 7,431,082 8,308,975
Balance
As At 31 Dec 2014 21,029 63,576 59,544 144,149
Balance
As At 1 Jan 2013 - 66,170 45,715 111,885
Advances 20,253 386,045 14,949,339 15,355,637

20,253 452,215 14,995,054 15,467,522
Less:
Repayment of
Advance 10,275 440,845 14,834,306 15,285,426
Balance
As At 31 Dec 2013 9,978 11,370 160,748 182,096
21

8. OTHER DEBTORS
2014 2013
RM RM
Emolument Debtors 72,802 46,954

Trade Debtors 173,808 750,772
246,610 797,726
9. FIXED DEPOSITS AND SHORT TERM INVESTMENT
2014 2013
RM RM
Licensed Banks 331,000,000 330,000,000
10. SUNDRY CREDITORS
2014 2013
RM RM
Accrued Gratuity For Retirees* 81,601,019 -

Supply And Services 15,683,825 23,035,786
Accrued Interest On Terms Loan 754,602 754,602
98,039,446 23,790,388
* Accrued gratuity for retirees involves the provision of benefits to retirees

under the IRBM Remuneration Scheme who retired from March 1, 1996 until
March 31, 2013.
22

11. TERM LOANS
2014 2013
RM RM
Repayment Of Term Loans
- Within 1 year 46,927,764 46,927,764

- 1 to 5 years 24,514,717 71,442,481
71,442,481 118,370,245
Less: Service Cost On Term Loans 23,430,333 38,758,333
Current Value Of The Term Loans 48,012,148 79,611,912
2014 2013
RM RM
Term Loans Shown As:
Current Liabilities
- Within 1 year 31,599,764 31,599,764
Long Term Liabilities

- 1 to 5 years 16,412,384 48,012,148
Current Value Of The Term Loans 48,012,148 79,611,912
IRBM had received loans from Retirement Fund Incorporated. The details of
loan IRBM with Retirement Fund Incorporated are as follows:
Loan Administration Repayment

Year Amount Fee Period Building/Land
Year
RM % / Year
2008 103,800,000 6 8 Menara Hasil, Petaling Jaya, Selangor
(Fixed Rate)
2008 140,000,000 6.5 8 Akademi Percukaian Malaysia Kuching

(Fixed Rate)
23

12. FINANCE LEASE
2014 2013
RM RM
Repayment Of Finance Lease
- Within 1 year 2,983,860 -

- 1 to 5 years 11,185,571 -
14,169,431 -
Less: Service Cost On Finance
Lease 1,691,787 -
Current Value Of The Finance Lease 12,477,644 -
2014 2013
RM RM
Finance Lease Shown As:
Current Liabilities
- Within 1 year 2,369,917 -
Long Term Liabilities

- 1 to 5 years 10,107,727 -
Current Value Of The Finance Lease 12,477,644 -
IRBM bought motor vehicle for distribution to all IRBM branches at a cost of
RM14,597,863. The overall cost was financed through financial leasing.
13. DEPOSITS
2014 2013
RM RM
Special Deposits 4,354,256 3,308,966

Retention Money 136,182 95,450
Guaranteed Money 16,450 21,614
Other Deposit 618,585 4,700
5,125,473 3,430,730
24
14. DEVELOPMENT FUND
Development Fund is the fund which provided by Federal Government to

finance the development project.
2014 2013
RM RM
Balance As At 1 January
865,526,415 856,659,122
Received Cash From Federal

Government
140,408,242 112,660,000
Received Non Cash From Federal

Government 7,319,036 16,304,223
1,013,253,693 985,623,345
Less: Amortisation of Development

Grant
Cash Expenditure 76,184,851 68,388,361

Depreciation /Impairment
Of Property, Plant and
Equipment 83,787,313 51,708,569
159,972,164 120,096,930
Balance As At 31 December 853,281,529 865,526,415
15. TRUST FUND
Malaysian Tax Academy Trust Fund has been set up to account for revenue
and expenses related to the welfare of courses participants, training activities,
research and publications of the Malaysian Tax Academy. It also includes
programs involving international courses run by Malaysian Tax Academy in
collaboration with the Economic Planning Unit, Prime Minister's Department
under the Malaysian Technical Cooperation Programmed.
25

2014 2013
Malaysian Malaysian
Tax International Tax International
Academy Courses Total Academy Courses Total
RM RM RM RM RM RM
Revenue
Received From Internal

Resources 331,763 742,235 1,073,998 780,185 336,054 1,116,239
Less: Expenditure
Cash Expenditure 345,249 317,139 662,388 1,671,727 54,253 1,725,980
Depreciation Of
Property, Plant And
Equipment 384,238 - 384,238 323,350 - 323,350
729,487 317,139 1,046,626 1,995,077 54,253 2,049,330
Current Surplus / (Deficit) (397,724) 425,096 27,372 (1,214,892) 281,801 (933,091)
Accumulated Surplus /
From Previous Year 2,556,841 303,876 2,860,717 3,753,395 40,413 3,793,808
Adjustment - - - 18,338 (18,338) -
Accumulated Surplus
Carried Forward 2,159,117 728,972 2,888,089 2,556,841 303,876 2,860,717
16. OTHER FUND
2014 2013
RM RM
Investment Fund 18,000,000 18,000,000

Conveyance Loan Fund 14,000,000 14,000,000
Computer Loan Fund 3,000,000 3,000,000
Education Loan Fund 1,000,000 1,000,000
36,000,000 36,000,000
26
17. ASSET REVALUATION RESERVE
Operation Development
Fund Fund Total
RM RM RM
Balance As At 1 January 2014 206,616,518 75,030,362 281,646,880
Revaluation Of IRBM Property
Building - - -
Land - - -
Total Amount of Revaluation - - -
Balance as at 31 Dis 2014 206,616,518 75,030,362 281,646,880
62,631,923 11,624,542 74,256,465

Balance As At 1 January 2013
Revaluation Of IRBM Property
Building 123,597,500 32,797,056 156,394,556
Land 20,387,095 30,608,764 50,995,859
Total Amount of Revaluation 143,984,595 63,405,820 207,390,415
Balance as at 31 Dis 2013 206,616,518 75,030,362 281,646,880
27

18. ACCUMULATED SURPLUS
2014 2013
RM RM
Accumulated Surplus From Previous

Year 660,153,730 619,297,827
Surplus /(Deficit) of Current Year Income (129,589,254) 40,855,903
Accumulated Surplus Carried Forward 530,564,476 660,153,730
Deficit of current year income was due to the amount of gratuity to retirees
under the IRBM Remuneration Scheme who retired from March 1, 1996 until
March 31, 2013, which was accrued in the year 2014. This situation is also
contributed by the decrease in the amount of grants received from Federal
Government compared to year 2013.
19. REVENUE
IRBM main revenue is grant received from Federal Government in return for
services as set out in Section 10 of the Inland Revenue Board Act 1995. The
revenue also comprise of income from the following resources:
2014 2013
RM RM
Federal Government Grant 1,704,527,700 1,811,307,000

Amortization Of Development Fund 159,972,164 120,096,930
Amortization Of Trust Fund 1,046,626 2,049,330
Previous Year Repayment Received 1,051,182 1,050,600
Rental 807,865 798,109
Sales Of Others Printing Goods 464,307 84,740
Penalties 146,998 234,797
Profit Of Insurance Protection Scheme 107,856 84,306
From Takaful Company 86,311 53,734
Service and Service Payments 9,767 79,837
1,868,220,776 1,935,839,383
28
20. OTHER OPERATING INCOME
Other operating incomes consist of:
2014 2013
RM RM
Sale of Store Items 2,170 5,833

Profit On Disposal Of Property,
Plant and Equipment 90,222 79,350
Non-Cash Items (in assets form) 1,588,912 415,036
1,681,304 500,219
21. STAFF COST
Staff costs consist of:
2014 2013
RM RM
Salary 719,635,351 698,132,001

Fixed Allowance 89,557,780 83,080,514
Statutory Contribution 193,658,094 202,970,790
Overtime Allowance 7,963,159 7,980,816
Other Financial Benefit 233,133,606 336,049,814
1,243,947,990 1,328,213,935
29

22. OTHER OPERATING EXPENSES
2014 2013
RM RM
Expenditure and Subsistence 23,072,779 27,126,099

Transportation 3,204,850 1,616,541
Communication and Utility 61,062,569 49,038,285
Rental 84,791,006 70,877,734
Supplies and Materials For
Maintenance 1,800,222 1,556,018
Sundry Materials and Supplies 12,373,285 12,752,370
Maintenance and Minor Repairs 27,880,155 29,145,512
Professional Services and Hospitality 191,938,937 184,278,868
Audit Fee 80,344 80,344
Clinical and Medical Services 19,048,181 18,178,341
Grants and Fixed Payment Charge 123,837,996 5,296,889
Miscellaneous 19,484,157 18,911,937
Amortization Of Development Fund 76,184,851 68,388,361
Amortization Of Trust Fund 662,388 1,725,980
645,421,720 488,973,279
23. RECEIVED FROM FEDERAL GOVERNMENT AND OTHER INCOME
2014 2013
RM RM
Total Revenue (Note 19) 1,868,220,776 1,935,839,383

Other Operating Income (Note 20) 1,681,304 500,219
Amortization Of Development Fund (159,972,164) (120,096,930)
Amortization Of Trust Fund (1,046,626) (2,049,330)
Non Cash Received (1,588,912) (415,036)
Gain/(loss) On Disposal Of Property, (90,222) (79,350)
Plant and Equipment 576,964 (300,525)
Trade Debtors - 198,348,960
1,707,781,120 2,011,747,391
30
24. PAYMENT TO SUPPLIERS AND STAFFS
2014 2013
RM RM
Staff Cost (Note 21) 1,243,947,990 1,328,213,935

Other Operating Expenditure 645,341,376 488,892,935
Amortized cash expenditures for
Development Fund and Trust Fund (76,847,239) (70,114,341)
Sundry Creditors (74,249,058) 4,101,240
Deposit (1,694,743) (2,668,682)
Deposit and Prepayment 1,324,757 3,486,170
Advance Payment (37,947) 70,211
Emolument Debtors 25,848 43,630
Provision For Doubtful Debts (665) -
Provision For Audit Fee 80,344 70,040
1,737,890,663 1,752,095,138
25. CAPITAL COMMITMENT
2014 2013
RM RM
Approved and Contracted 71,488,098 245,516,806
26. FINANCIAL INSTRUMENT
26.1. Interest Rate Risk
Interest rate risk is where financial instrument will vary due to the
changes of market interest rate and the average effective interest rate
is based on the financial asset and financial liability as follows:
31

Total Effective
Brought Within 1 To 5 After 5 Interest
Value 1 Year Years Years Rate
RM’000 RM’000 RM’000 RM’000 %

2014
Financial Asset
Loans To Employees 2,181 599 1,582 - 4.0
Fixed Deposit and
Short Term Investment 331,000 331,000 - - 3.1 – 3.8
Cash and Bank Balances 17,849 17,849 - - -
Financial Liability
Term Loans 48,012 31,600 16,412 - 6.0 – 7.0
Finance Lease 12,478 2,370 10,108 - 5.0 – 5.7
2013
Financial Asset
Loans To Employees 1,939 544 1,395 - 4.0
Fixed Deposit and
Short Term Investment 330,000 330,000 - - 3.1 – 3.8
Cash and Bank Balances 3,725 3,725 - - -
Financial Liability
Term Loan 79,612 31,600 48,012 - 6.0 – 7.0
Finance Lease - - - - 5.0 – 5.7
26.2. Credit Risk
Maximum credit risk involving with financial asset identified as the

brought value as stated in the balance sheet. IRBM does not have any
specific deal towards the credit risk with any other parties.
26.3. Fair Value
The brought value for all the financial asset and financial liabilities of
IRBM on the Balance Sheet date is estimated at the fair value.
32

27. LOAN FUND POSITION
Conveyance Computer Education Total

RM RM RM RM
Approved Funding
Limits 14,000,000 3,000,000 1,000,000 18,000,000
Balance
As At 1 Jan 2014 13,446,178 2,277,325 253,127 15,976,630
Less:
Loans To Employees 266,900 589,100 41,248 897,248
13,179,278 1,688,225 211,879 15,079,382
Add:
Repayment Of Loans
By Staff 244,621 408,149 4,406 657,176
Balance
As At 31 Dis 2014 13,423,899 2,096,374 216,285 15,736,558
Balance
As At 1 Jan 2013 13,511,096 2,193,762 320,948 16,025,806
Less:
Loans To Employees 256,400 349,166 359,735 965,301
13,254,696 1,844,596 (38,787) 15,060,505
Add:
Repayment Of Loans
By Staff 191,482 432,729 291,914 916,125
Balance
As At 31 Dis 2013 13,446,178 2,277,325 253,127 15,976,630
28. INCOME TAX
Refers to the power of the Minister in section 127 (3) (b) of the Income Tax Act,
1967, IRBM has been granted exemption from payment of income tax in
respect of all income (excluding dividends) for the period from the year of
assessment 1997 until the subsequent years of assessment. The exclusion
order is a reference to the Income Tax (Exemption) (No. 20), 2000.
33

29. COMPARATIVE FIGURES
The comparative figures have been reclassified to suit with current year
presentation of Financial Statement.
30. GENERAL INFORMATION
The number of employees at the end of the financial year was 10,618
compared to 10,727 persons in 2013, a decrease of 109 people. The decline
in the number of employees is due to the employee who retired in 2014.
34
FINANCIAL STATEMENT ANALYSIS
2014’S FINANCIAL PERFORMANCE REPORT
INCOME
The total income of IRBM for the year end December 31st 2014 is RM1,886.96 million which
consists of:
Government Funding
IRBM’s main income is received from Federal Government funding comprising of

RM1,634.53 million (2013: RM1,781.31 million) allocation for management, RM70 million
(2013: RM30 million) for BR1M’s allocation while amortised grant totaling of RM161.02 million
(2013: RM122.15 million) comprising Provision of Development amounting to RM159.97
million and the rest for *the grant Money. The government funding is inclusive of 98.87% of
the IRBM’s total income.
Other Income
Apart from the government’s grant, IRBM’s income is contributed by other investment
income such as Interest and loans of RM17.06 million (2013: RM11.79 million), rental income
of RM0.807 million (2013: RM0.798 million), Repayment Received from Previous Years of
RM1.05 million (2013: RM1.05 million) and other income amounting to RM2.49 million (2013:
RM1.04 million).
Overall, IRBM’s income has decreased by 3% compared with RM1,948.13 million in 2013.
The decline in revenue is based on a reduction of the government grants for cost savings.
Chart 1: Income For The Year End December 31st 2014
RM70 million
RM17.06 million
RM4.35 million
RM161.02 million
Management Provision
Amortised Government Grant
BR1M Provision
Investment & Loan Interest

Others
RM1634.53 million

EXPENDITURES
Expenditure Summary
Total expenditure of IRBM for the year ending 31st December 2014 stood at RM2,016.55
million (2013: RM1,907.28 million). Two (2) major factors affecting the total expenditures are
staff costs: RM1,243.95 million (2013: RM1,328.21) and expenses incurred for professional
and hospitality services amounting to RM191.94 million (2013: RM184.28 million). Other
expenditures involved are depreciation/impairment property, plant and equipment cost of
RM111.62 million (2013: RM73.65 million), rental cost RM84.79 million (2013: RM70.88 million),
amortised development and trust expenditure totaling RM76.85 million (2013: RM70.11
million), communication and utility RM61.06 million (2013: 49.04 million), maintenance and
minor repairs RM27.88 million (2013: RM29.15 million) cost of living RM23.07 million (2013:
RM27.13 million), the granting of fixed charges RM123.84 million (2013: RM5.3 million) and
other expenditure totaling RM71.55 million (2013: RM69.54 million)
Chart 2: Expenditures For The Year Ending 31st December 2014
Staff Cost
RM123.84 million
RM23.07 million RM71.55 million Professional & Hospitality
Services
RM27.88 million
RM61.06 million Depreciation/Impairment of
Property, Plant and Equipment
RM76.85 million
Rental
RM84.79 million Amortised Cash Expenditure
RM111.62 million Communication and Utility
Maintenance and Minor

Repairs
RM191.94 million Living Cost and Expenses
Grant & Fixed Fees
RM1,243.95 million Other Expenses
Expenditure Analysis
IRBM has spent 62% of total expenditures to finance staff costs. Human resource is the
most valuable asset that guarantees to increase voluntary compliance rate as well as
being the prime mover in ensuring quality services delivery. The second largest expenditure
is on professional and hospitality services which includes computer license, fees other
emoluments part-time officers, legal services, printing services, advertising and others.

Expenditure Differences
Overall, the expense of IRBM has increased by 6% as compared to RM1907.28 million in

2013. The increase in this expenditure is contributed by the increase in the cost of rental
of RM13.91 million. The increase in rental cost is due to the transfer of few branches into
IRBM office or bigger spaces with conducive environment suitable to the increment
of employees and the number of taxpayers. In addition, the cost of depreciation/
impairment of property, plant and equipment also increased by 52% or RM37.98 million
in 2014. This is a result of the Computerization Project capitalisation in 2014 and purchases
of new vehicles for official use in IRBM. Expenses related to grant & fix fees increase to
RM118.54 million due to the granting of end of service consolation (STP) to IRBM staff
announced in 2013. The provision of STP is given to officers under the IRBM remuneration
system who ended their services commencing from March 1st 1996. However, the cost of
travel and living expenses showed a drop of 15% through suggested austerity policies have
been.
Table 1: Comparison Of IRBM Expenditure For 2014 And 2013

Item 2014 (RM) 2013 (RM)
Staff Cost 1,243,947,990 1,328,213,935
Professional & Hospitality Services 191,938,937 184,278,868
Depreciation/Impairment of Property,
111,623,266 73,647,669
Plant and Equipment
Rental 84,791,006 70,877,734
Amortised Cash Expenditure 76,847,239 70,114,341
Communication and Utility 61,062,569 49,038,285
Maintenance and Minor Repairs 27,880,155 29,145,512
Living Cost and Expenses 23,072,779 27,126,099
Grant & Fixed Fees 123,837,996 5,296,889
Other Expenses 71,550,822 69,537,723
Total 2,016,552,759 1,907,277,055
LOAN/EXTERNAL FINANCING
Throughout 2014, IRBM did not procure any loans or receive financing from any party
to support its management expenditure. However, there are still two outstanding loans
secured from the Retirement Fund (Incorporated) which was used for the acquisition of
office building in Petaling Jaya and the construction of MTA Kuching. Total remaining
loan paid throughout 2014 amounted to RM31.60 million. Until December 31st 2014, the
outstanding loan balance stood at RM48.01 million which consists of current liabilities
amounting RM31.60 million and long term liabilities totalling RM16.41 million which is
expected to be settled by 2016.

PERFORMANCE OF MANAGEMENT EXPENDITURE
IRBM’s fund provision is distributed accordingly to the six (6) major programmes comprising
eight (8) activities. Tax Services, Compliance, Policy, Tax Operation and Management
programmes are conducted at headquarters level, while State Programmes include
activities done at branches nationwide. Statistic for expenditure according to programmes
are as stated below:-
Table 2: Expenditure According To The Programme For 2014 and 2013

Tax Services 183,412,049 98,507,593
Compliance 101,172,419 95,741,263
Policy 29,095,275 31,752,329
Tax Operation 188,707,922 190,110,014
Management 187,329,063 163,156,864
State 1,100,584,206 1,144,107,032
Total 1,790,300,934 1,723,375,095
Expenses in Table 2 is not including depreciation/impairment of property, plant, equipment

and expenses BR1M.
Chart 3: IRBM Expenditure Performance According To 2014’s Programmes
RM101.17 million RM29.10 million
RM183.41 million
State
Tax Operation
RM187.33 million
Management
Tax Services
Compliance
RM188.71 million
Policy
RM1,100.58 million

Tax Service Programme
Tax Service Programme expenditure includes all activities such as research, corporate
service, internal audit, inspectorate, risk management, tax appeal, intelligence, special
investigation and financial management. Expenditure under this programme for 2014 has
increases to RM84.9 million, which RM81.6 million is for the Accrued Consolation for end of
service expenses. In 2014, IRBM has allocated a portion of the expenditure budget for tax
awareness programmes which involves advertising in relation to taxation awareness via
radio, television and tabloids.
Compliance Programme
Expenditure under the compliance program covers all expenses for activities such as
the formulation of policies relating to tax compliance, investigations, corporate tax
audit and taxation of multinational companies as well as petroleum. This enforcement
and investigations for related offences is the key element towards implementing tax
compliance. This program was implemented by several departments and divisions under
the headquarters in IRBM.
Policy Programme
The Policy Programme applies to all formulation of policy for tax operation at national and
international level. It also includes legal function such as handling court cases and act as
legal advisor to IRBM. This programme requires a minimalist expenditure of 1.63%. from the
bulk of the total expenditure in year 2014 and the major portion allocated towards staff
cost, travelling and subsistence.
Tax Operation Programme
Tax Operation Programme is the most important component to ensure efficiency of

the tax collection process in IRBM. Activities under this programme encompass all tax
operation activities, revenue collection and the required information technology. In 2014,
the expenditure for this programme increases to RM1.4 million compared to 2013. The
highest expenditure for this program involved an expense related to data processing and
computer services. This expenditure is intended to ensure the quality of best delivery system
to our customers.
Management Programme
Management Programme consists of activities involving the development of organisation,

human resource management and training courses, as well as the management of assets
including IRBM offices. IRBM gives emphasis to comprehensive training and human resource
development. The implementation of these activities is seen as a long term investment for
IRBM to produce officers of high competency to carry out the functions that have been
outlined.

State Programme
State programme contributed to the largest expenditure i.e. IRBM 61.47% of total expenses
and over 50% of this expenditure affecting the staff costs. Activities under the programme
state is as administrative activities in the State, Tax, Audit, Stamp Collection, customer
service and detection. Expenditure under the State programme have shown decreases in
2014 by 3.8% compared to the year 2013.
DEVELOPMENT EXPENDITURE PERFORMANCE IN 2014
The ceiling provision of Rolling Plan 4 (2014-2015) for the tenth Malaysia Plan (RMK10)
approved by the Federal Government amounted to RM246,596,103 for the implementation
of IRBM’s development projects. The details of the development project are as the table
below:
Table 3: Development RMKe-10 Project Performance (Rp3 2014-2015)

Budget Ceiling Annual
Budget Expenditure
RMKe-10 Expenditure
Item Year 2014 Performance
RP4 (2014-2015) 2014
(RM) (%)
(RM) (RM)
Computerisation 187,065,963 121,147,611 44,368,552 36.6
Building 39,164,140 10,552,389 8,371,825 79.3
SRI 20,366,000 19,366,000 11,411,475 58.9
Total 246,596,103 151,066,000 64,151,852 42.5
The approval of computerisation project was initiated to establish a competent and

efficient online taxation management system for taxpayers which will have positive
impact on the increase of tax revenue collection. Among the computerisation projects
implemented by IRBM are the development of e-Service system which facilitate tax system
chores such as e-filling while the Defection and Business Intelligence system identify and
detect new taxpayers. Apart from that, tax compliancy rate has been successfully elevated
amongst taxpayers through various systems such as upgraded networking capabilities,
upgraded mainframe system as well as other related systems.
Approved building projects stated in the table refers to the construction of IRBM office
building in Malacca and Teluk Intan. The main objective of this project is to provide customer
satisfaction with the service offerings while providing convenient and comfortable new
building surroundings to the taxpayers. Besides that, the construction of a building to serve
as a processing, production, warehousing and storage centre in Bangi is to enable a

more systematic and effective processing of tax forms from across the country which will
eventually elevate the work rate productivity of IRBM personnels. The construction of IRBM
buildings in Kota Kinabalu is to repair damage caused by subsidence of the land.
The Strategic Reform Initiatives (SRI) project is one of the strategy and initiative proposed
by PEMANDU to widen tax base and solicit new taxable sources to increase the nation’s
revenue. Among the projects implemented by IRBM includes the Customer Relations
Management System (CRMS); to facilitate complaints or enquiry received through its
One Stop Channel and guarantee the smooth transition of application in order to obtain
consumer feedback through effective customer service system.
OVERALL ACHIEVEMENT
Overall, the financial management of IRBM is carried out in a transparent, prudent and
‘value for money’ manner. All expenditures are designed to provide positive impact on
IRBM’s core function; to collect income tax revenue for the country. The increase of costs
by 6% (2013: 20.5%) compared to 2013 has given a positive outcome towards the financial
management in IRBM and consistent with IRBM’s achievement which was higher than
expected in all Key Performance Indicators (KPI) such as revenue collection, widening of
tax base, audited taxpayers, resolved investigation cases, reduced revenue arrears and
other KPI’s subjected to IRBM.


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2015 Publication

© Inland Revenue Board of Malaysia (IRBM) 2015

All Rights Reserved. Articles, illustrations and contents of

Malaysian National Library

HIGH PERFORMANCE WORKING CULTURE

AWARDS & ACHIEVEMENTS

NATIONAL HIGHER EDUCATION FUND CORPORATION AGENT (PTPTN)

1MALAYSIA PEOPLE’S AID (BR1M) 80

FINANCIAL STATEMENT 106

FINANCIAL STATEMENT ANALYSIS 144

Assalamualaikum W.B.T, greetings,

Once again, a ground breaking achievement for Inland Revenue Board of

1. Collect the appropriate amount of tax in action closed at 29.59% compared to

6 Annual Report 2014

Assalamualaikum W.B.T, greetings,

Alhamdulillah, grateful to Allah SWT to have the opportunity to lead this

Threats in the world economic environment

Hence, IRBM need to enhance various

The fact is, there is no more precious,

12 Annual Report 2014

Annual Report 2014 13

• Income Tax Act 1967

a. Federal Constitution 1957

a. Estate Duty Enactment 1941

Annual Report 2014 15

The Board of Directors of IRBM comprises of the following members:

a. Secretary General of Treasury cum IRBM Chairman

18 Annual Report 2014

ENCIK FADZLI ABDUL WAHIT

Annual Report 2014 19

DATUK SABIN SAMITAH

DATO’ ABD AZIZ HASHIM

20 Annual Report 2014

CHIEF EXECUTIVE OFFICER/

DEPUTY CHIEF DEPUTY CHIEF DEPUTY CHIEF DEPUTY CHIEF

BRANCHES BRANCHES BRANCHES BRANCHES

STATE DIRECTOR’S OFFICE (SDO)

Annual Report 2014 21

22 Annual Report 2014

IRBM Board Meetings

IRBM Special Meetings

Annual Report 2014 23

This statement provides an overview of IRBM’s risk management policies, internal

Risk management involves all operational activities in IRBM.

Risk Management Monitoring

Internal Policies & Procedures

-Compliance - Operations - System

IRBM Risk And Compliance Committees

Risk And Compliance Committee Members

Encik Fadzli Abdul Wahit

24 Annual Report 2014

Annual Report 2014 25

Contribution of Gross Direct Taxes To The Federal Government’s Revenue

100 Gross Collection

50 Federal Government’s Revenue

Contribution of Nett Direct Taxes To The Federal Government’s Revised Forecast

30 Federal Government’s Revised

28 Annual Report 2014

Companies 69,948.08 Companies 65,103.80

* IOFC (International Offshore Centre)

TAX MANAGEMENT EFFICIENCY

Annual Report 2014 29

Tax Audits Settlement Performance

Field Audits Performance