Saturday, March 11, 2006

Inland Revenue Board - Public Rulings 1 & 2/2006

Public Ruling 1/2006 - Perquisites From Employment

Date of Issue - 17 January 2006

This ruling, in general, explains the distinction between perquisites and benefits-in-kind (BIK), in relation to an employment, the types of perquisities, tax treatment and the employer's responsibilities upon granting of perquisites to the employee and the employee's responsibilities on receiving such perquisites.

Common perquisites given to employee:
  • pecuniary liability of employees paid by employer eg. income tax payment, electricity bills, water and telephone bills
  • credit card facilities
  • loan interest
  • recreation club membership
  • gardener, driver, domestic help or guard
  • scholarship
  • assets given FOC or sold at discount
  • gift vouchers
  • professional subscriptions
The value of perquisites received by employee is treated as his gross income.

Employer is required to report in Form E and the employee's Form EA & EC all such payments including benefits provided for the spouse, family, servants, dependent or guest of the employee, and to keep records and receipts pertaining to this for a period of seven (7) years.

Failure to comply will render YOU liable for prosecution or penalty.

Effective Year of Assessment : 2005

Public Ruling 2/2006 - Tax Borne by Employers

Date of Issue - 17 January 2006

This ruling explains the computation of perquisites relating to income tax of the employee borne by the employer and tax payable by the employee who is entitled to this perquisites.

Effective Year of Assessment : 2005

If you have submitted your tax returns, have you complied?

If you have not submitted your tax returns, ensure you comply!

Monday, March 06, 2006

Can Govt Spend 5% of RM4.4 Billion "Savings" On This?

Do you believe these photos were taken from a public toilet provided by a petrol station near Centrepoint, Bandar Utama? Had a culture shock when I walked in and almost every facility here is AUTO i.e. thermo-sensor installed and fully functional (including soap dispenser), only the doors are manual!




Malaysia Boleh?

Wednesday, March 01, 2006

Sweet Revenge With The Oldest Trick On Earth

In Lady V's humble opinion, there are two valid reasons why some people get to sit high up there, on the corporate ladder, doing what seems to be nothing much as all, whereas the rest of us get stuck at the bottom and slog our asses off.

And the reason is simple - those who sit up there are those who can handle stress, a big chunk of it, and they will have to, no matter what. In addition, they will also have to be prepared for all sorts of weapons being shot at them from whoever, wherever and whenever, albeit, when they least expected, and learn to deal with it, gracefully or not.

Lady V admits she is not one who possesses such essential qualities, however, she is definitely one who contributes to the tough learnings of these corporate elites, and one of them is none other than her devil in disguise manageress.

Knowing what she is capable of, Lady V loves to toy with this gift and play it to her advantage, and most of the time, its pay-back. Recalling the incident this afternoon, she couldn't help but smile inwardly at how she manifested the oldest trick to its fullest.

Conversation with Director over tea and chatting mindlessly:

D: How's work been in your department?

V: It's almost the same for me, other than the piling up work, I'm loving it. But I'm glad that I can be of help to my manageress, to share her burden.

D: What's wrong?

V: Nah, all I feel is that she is working too hard and needs to chill out. So by helping her with her share of work I hope she can leave the office earlier and have a social life. *smiling innocently*

D: *raises his left eyebrow*

V: Well basically, she needs to get hooked up with some man....I'm sure you know about her bad break up with that's really affecting her a lot. I suppose the least I could do now is to support her through this rough patch so that she won't break down and affect others working with her.

D: I see....*takes a sip of coffee from his cup and goes into deep thoughts with narrowing eyebrows*

Lady V really cherishes her afternoon tea with elites who have offices at top levels of corporate buildings because she could always flaunt her innocence that causes lethal disturbances to those deserving.