Business

Deloitte Soothes Taxpayers’ Concerns Over LHDN’s Power To Directly Access Bank Accounts

Published

2 years ago

December 17, 2021

Deloitte Malaysia has stepped forward to reassure Malaysians that they need not be too worried about a recent amendment made to the Income Tax Act 1967, which grants the Inland Revenue Board (LHDN) direct access to taxpayers’ bank accounts. This is because the right will only be exercised if a garnishee order application is made in court.

For context, the government had recently passed the Financial Bill 2021, which introduced amendments to several Acts – one of which is the inclusion of a new Section 106A in the Income Tax Act 1967. Under this new section, LHDN will no longer be required to inform or obtain consent from taxpayers while requesting their bank account details for reviews or investigations.

According to the tax audit and investigation executive director of Deloitte Malaysia, Mohd Fariz Mohd Faruk, it is crucial for the public to first understand the specific conditions of the new Section 106A. “The power to call for bank account information must be for the purpose of making garnishee order application. One must be clear of the definition of garnishee proceedings,” he said in a statement.

Essentially, a garnishee proceeding is a court-approved process where creditors are allowed to recover money owed to them by requesting for a third party (who is indebted to the debtor) to hand over any of the debtor’s assets that are currently in the third party’s possession.

“This would mean that a civil proceeding must have been instituted against a person and a judgment has been obtained against that person for LHDN to be able to obtain the bank account information of that person from the financial institutions. The purpose of obtaining such bank account information is for LHDN to make the application to the court for a garnishee order (i.e. to recover tax due and payable by the person to the government),” Mohd Fariz explained.

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Mohd Fariz also stressed that the director-general of LHDN (DGIR) must have a notice if he wishes to request for any taxpayers’ bank account details. “The new Section 106A does not permit or extend the power to the DGIR to obtain such information for other purposes,” he said.

Additionally, Mohd Fariz addressed the matter of Subsection (2) in Section 106A, which prohibits banks from disclosing to taxpayers when such requests have been made. “This does not mean that LHDN has a free hand to ask for bank account information of a taxpayer from financial institutions in ‘secret’ or ‘private’ without the taxpayer’s knowledge,” he stated, adding that the personal and bank account information of taxpayers will still be protected by respective banking secrecy laws, such as the Personal Data Protection Act 2010 (PDPA).

Given these conditions, Mohd Fariz said that the public can have confidence in an ethical implementation of Section 106A, as it is ultimately intended to promote tax compliance and to provide the ability to recover tax debts due to the government. “The new power granted to LHDN can be seen as far-fetched but in reality, it may not be widely applicable or implemented to people on the street who have been complying with their income tax obligations,” he said.

Related Topics:Fariz Mohd Faruk LHDN’s

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Oando, Tantalizer, other equity investors lose N40bn

Published

23 hours ago

September 23, 2023

Seun Okerayi

On Thursday, the Nigerian stock market experienced sell-offs that caused losses in Oando, Tantalizer, and other companies before the end of trade.

After five hours of trading today, the sell-offs reduced the equity capitalisation by N40 billion, from N37.40 trillion to N37.36 trillion.

The All-Share Index, which had previously closed at 68,335.72 but fell by 64.58 basis points to 68,271.14 today, mirrored the fall.

On Thursday, investors transacted 7,949 deals totaling 1.12 billion shares worth N5.81 billion.

More than 8,201 transactions totaling 566.63 million shares worth N5.38 billion were made on Wednesday by shareholders.

With a N0.15 kobo increase in share price, John Holt moved from N1.57 kobo to N1.72 kobo per share, topping the list of gainers.

In comparison to its starting share price of N0.21 kobo, DAAR Comm increased by 9.52 percent to close at N0.23 kobo.

Omatek’s share price increased from N0.42 kobo to N0.46 kobo, a 9.52 percent increase.

Mutual Benefit’s share price increased by 9.30 percent, rising from N0.43 to N0.47 kobo per share.

Shares of Sunu Assurance ended trading at N0.96 kobo, up 9.09 percent from N0.88 kobo.

Oando topped the losers’ table after shedding N1.45 kobo to drop from N14.60 kobo to N13.15 kobo per share.

Lasacol’s share price dropped by N0.20 kobo to end trading at N1.86 kobo from N2.06 per share.

Chams lost N0.14 kobo to end trading with N1.32 kobo from N1.46 kobo per share.

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NNFM lost N1.55 kobo to drop from N16.80 kobo to N15.25 kobo per share.

Tantalizer’s share dropped from N0.35 kobo to N0.32 kobo per share after losing N0.90 kobo during trading.

Universal Insurance topped the day’s trading with 669.01 million shares valued at N134.20 million.

Oando followed with 100.68 million shares worth N1.45 billion.

Japaul Gold sold 43.73 million shares worth N43.38 million.

Access Corporation traded 40.14 million shares valued at N681.94 million, while UBA sold 32.45 million shares valued at N552.75 million.

Business

President Tinubu Meets With Nigerians In US

Published

2 days ago

September 22, 2023

Seun Okerayi

President Bola Ahmed Tinubu has met with members of the Nigerians in the Diaspora Community in the US

The President tasked Nigerians living in the US to bring their resources to invest in the Nigerian economy.

President Tinubu said this in a meeting organised by the Nigerians in Diaspora Commission (NIDCOM) on the sidelines of the ongoing 78th session of the United Nations General Assembly (UNGA).

The President who advised the community to overcome setbacks asked the citizens to adopt a new mindset.

He further told the gathering at the Town Hall meeting that their fatherland had become home for business opportunities.

“I want to give you a measure that will resonate with you. I was once a Diasporan. What you have been through, I have been through it. A change of mindset is necessary. Take it this night that Nigeria is home for business opportunities.

“Also, anywhere you stay, there is always going to be an opportunity in it and in everything you do, there is always going to be an opportunity, if you know how to search and put your mind to it.”

President Tinubu expressed satisfaction with their conduct lauding their exemplary conduct and how they had continued to succeed in their country of residence.

“You are lucky to be among those who are celebrated for good manners and behaviour and are operating acceptably.

“I’m very proud of you; I have also been a beneficiary of inspiration, determination, commitment and perseverance and that is all you need to pull through.

“But, we need you back home, Nigeria has arrived; forget the frustration of the previous years’ leaderships,” President Tinubu said.

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The Nigerian leader stressed that his administration is currently reviewing the challenges of out-of-school children, and the healthcare programme to change narratives, he identified the need to eradicate poverty.

“Sincerely, we don’t have any reason to be poor. We are just poor in some leadership areas. That is what I harped on during my campaign. It was a very gruesome campaign but I won the election. If I didn’t throw myself into it with strong determination and resolve, I wouldn’t have won,” President Tinubu added.

Business

World Bank pledges to reposition Nigeria’s irrigation farming

Published

2 days ago

September 22, 2023

Seun Okerayi

The World Bank announced its commitment to reposition Nigeria’s irrigation farming for sustainable economic development and for food security on Thursday in Abuja.

It announced the commitment when its team on Sustainable Power and Irrigation in Nigeria/ Transforming Irrigation Management in Nigeria, (SPIN/TRIMING) project officials visited the Minister of Water Resources and Sanitation, Prof. Joseph Utsev.

The officials were led by Mr Jun Matsumoto, the Team Lead. Matsumoto acknowledged the successful transformation of irrigation asset management in Nigeria through the establishment of water users associations.

He noted the pivotal role played by the associations in ensuring the sustainable management of irrigation resources and called for support in achieving the project’s objectives.
He emphasised the critical importance of collaboration in the upcoming SPIN project and elaborated on its core objectives.

Matsumoto said one of the objectives was the utilisation of existing water resources infrastructure to address Nigeria’s water resources and energy requirements.

He said the project would include comprehensive technical assistance studies focused on large-scale water resources management, and the development of multi-purpose dam hydropower projects.

Responding, Prof. Utsev said achievements already recorded in Nigeria’s TRIMING project was impressive.

He emphasised the integral connection between economic sustainability and food security underlining the TRIMING project’s pivotal role in enhancing food production.

The minister welcomed the proposal to replace TRIMING, set to expire in 2024, with SPIN, saying it would address Nigeria’s pressing challenges in the area of food sufficiency.

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Prof. Utsev reaffirmed Federal Government’s commitment to food security, improved irrigation techniques, and enhanced farming practices across the country.

He expressed gratitude to the World Bank for the remarkable progress recorded on the project over the past nine years and expressed optimism that it would yield even more significant outcomes.

TRIMING strengthened quality of and access to productivity-enhancing and market access services for 130,000 farmers in four rehabilitated irrigation schemes.

They are the Bakolori Irrigation Scheme in Zamfara, Middle Rima Irrigation Scheme in Sokoto State, Kano River Irrigation Scheme, and Hadejia Valley Irrigation Scheme in Jigawa state.

The project provides technical assistance to establish a Farmers’ Management Centre at each of the irrigation schemes.