Tuesday 19 September 2017

Doctors said IRB was unfair to call them cheats (updated)


This is the latest on this issue,

IRB chief denies labelling doctors as tax dodgers


The other day, the Inland Revenue Board sorts of officially made it that doctors are the worst cheats in the country,

Doctors make up the bulk of tax dodgers: IRB 

Quite harsh, I think.

Did all those doctors intentionally try not to pay their taxes properly?

Anyway, I think this news would have been cheered especially by lawyers.

Suddenly they are no longer the worst when it comes to cheating people.

Yup, doctors are the worst, according to IRB.

A neurosurgeon hard at work saving life. The guy is my good friend who helps out at a government hospital. He almost quit doing that after being accused of cheating his taxes.
I think the accountants probably cheered too.

Well, I don't really know what to say, okay.

I have never been directly cheated by doctors, but I did lose quite a huge sum of money in the past because of some evil lawyers and accountants misled me (at a fee) to invest in some stupid shares and property purchases.

Anyway, let's be fair and hear what the doctors have to say about all these.

The following is a statement by President of Association of Specialists in Private Medical Practice Malaysia Dr Sng Kim Hock in relation to the matter,

“The Association of Specialists in Private Medical Practice Malaysia (ASPMPM) is deeply concerned and wishes to express its regret over the allegations made by the Chief Executive Officer of the Inland Revenue Board (IRB) Datuk Sabin Samitah that “Doctors make up the bulk of tax dodgers” which were published by the Sun Daily in an article entitled “Doctors make up the bulk of tax dodgers: IRB” on 17.9.2017.

We wish to clarify that over the past four decades, specialists in private medical practice in Malaysia have been advised by their respective accountants, many of whom are retired senior IRB officers and directors to file their taxes under ‘Sendirian Berhad (Sdn Bhd).

However, on 9.9.2016, IRB issued a ruling stating that services provided by specialists in private medical practice are no longer deemed taxable under ‘Sendirian Berhad’, but as a personal income.

This ruling will affect the income of specialists for three years, 2013-2015, and imposes a penalty of 15%.

Prior to the issuance of the said ruling, ASPMP and the MMA had a number of meetings with IRB. 

The outcome of those meetings were that all specialists with their accountants, need to do a self-audit which is based on the new ruling and resubmit their tax returns which includes a calculation of the said penalty, by 15.12.2016, failing which, IRB would impose a penalty of 45% or more.

That led to a massive exercise by many of the 3000 over specialists affected, which led to a collection of RM400 million, as revealed by the IRB CEO in another article published on the Utusan Malaysia online portal on 15.4.2017 entitled “Helah Doktor Pakar”.

It was therefore with much regret that we read the disconcerting statements published in the afore said articles that implied that all specialists in private medical practice in Malaysia are cheats.

The submissions of our tax returns are made upon the advice of our accountants, as well as certified tax agents and consultants, all of whom were approved by IRB prior to the said ruling. 

The allegations made are accordingly incorrect and unfair and we cannot allow such allegations to continue to be raised against specialists in private medical practice in Malaysia without taking the necessary steps to protect our reputation.

Moving forward, we wish to state that our doctors work hard for their earnings and should be allowed an opportunity to address any incorrect allegations. 

We also wish to take this opportunity to urge both the Chartered Tax Institute of Malaysia and Persatuan Insurans Am Malaysia to help clear the good name of doctors.


  1. Annie. This is not nice. Whatever they wanted they have gotten it. Now that the good doctors have complied with the new rulings sudahlah tak payahlah memburukkan suasana.

    Apa perlunya mengeluarkan kata-kata yang memecahbelahkan masyarakat lagi.

    1. Saje nak cari glamer... someone is trying to climb up higher on the ladder la

    2. Aduhai! Some in IRB have gone nuts: Call no one a cheat in this country until you lock up al-Criminal ala mdb!

    3. I thought the biggest cheater and tax dodger is a politican.

      For instance umno secretary general said he can't declare his wealth due to safety reason.
      Then how can IRB confirm that putrajaya guy didn't cheat without check and balance

    4. Someone will burnnn lah


  2. Imagine all those doctors who have been pursuit relentlessly to pay their taxes, guess who they gonna vote come GE-14?? wink..wink..revenge of the docs..

  3. Annie,

    "Tax efficiency" is a game which involves big bucks.

    It is the same anywhere in the world.

    Parliament passes tax laws.

    The Tax Man tries to collect taxes, in accordance to those tax laws, and the tax payer tries to be ...eeerrr... as efficient .. as possible with his tax payments, in accordance with those tax laws.

    For those tax payers who can afford it, there are always accountants and lawyers who can assist - for a hefty fee, tax deductible, of cos.

    All totally legal, all strictly in accordance with the tax laws as passed by Parliament.

    If the IRB is bitching about doctors not paying their taxes, the IRB should be asking which tax loopholes are being exploited and can those loopholes be closed off.

    It is no good pointing the finger at doctors and accusing them of not paying their taxes when, in fact, those doctors are, very likely, complying 100% with the tax laws- by paying big bucks (tax deductible) to lawyers and accountants, as they perfectly entitled to.

    And it is not just doctors who are ...eeerrr.. tax efficient.

    Lots of businesses are just as ...eeerrr... tax efficient.

    Also, has anybody wondered what our Top 100 tycoons really pay in taxes on the income they make?

    I will not be surprised if every single one of those Top 100 tycoons pay less tax than 90% of readers here!

    Note that I never used the phrase "tax avoidance" anywhere above because we all know that "tax avoidance" is illegal :)


  4. Ooops whack the doctors, the catalyst is Dr M...wink

  5. Nor Mohamad Yaacop resigns as Deputy Chairman of Khazanah..


    1. Welcome taib/bye bye yakop


  6. I'm sure IRB do not mind the Kleptocracy Government cheating the Rakyat through 1MDB-Jho Low.
    Not even a word came out from their mouth when RM2.6 million (+ RM42 million) got into Najib's personal account and RM2 million into Rosmah's. What about the RM128 million worth of Pink Diamond? Tax exemption too?

    1. Those ruling elite fat cats are exempted from paying tax RD. It is us who have to fork out day in day out to keep the government afloat. As long as revenues remain low as the result to lack of investments (investors don't want to come in to invest because the don't trust their money in the hands of kleptocratic government), IRB will be on overdrive mode collecting tax.

      There's a lot of IRB signboards suddenly mushrooming in town to guide the taxpayers where IRB office located. Taxes now become part of our daily life now. Everywhere you go you'd be hard press to be reminded of your duty to pay tax. The IRB gonna have a lot of work in the years to come so long as the country's revenue remain low.

  7. Annie. An excerpt from the above sharing on TS Nor Mohamed Yakcop:

    In a statement today, Khazanah Nasional said Nor Mohamed today submitted his resignation, effective September 30.

    It said Nor Mohamed would also vacate the post of Khazanah Research Institute chairman the same day.

    "The Board of Directors accepts his decision and we wish him well," it said.

    Khazanah Nasional chairman, Prime Minister Najib Razak, thanked the deputy chairman in the statement.

    “I would like to thank Tan Sri Nor Mohamed Yakcop for his contribution to Khazanah, in particular for his work on the 10-year Government-Linked Companies Transformation Programme which was led by the Putrajaya Committee on GLC High Performance," he said.

    Khazanah Nasional said Nor Mohamed was also instrumental to the success of numerous initiatives, including the revamp and transformation of Khazanah beginning in 2004, and the development of various economic corridors such as Iskandar Malaysia, Yayasan Hasanah, and Khazanah Research Institute.

    It said Nor Mohamad had contributed to these initiatives and others as a Khazanah board member and in his various capacities as economic advisor to the Prime Minister (2000 to 2003), finance minister II (2004 to 2009), and minister in the Prime Minister's Department, Economic Planning Unit (2009 to 2013).

    "The management and staff of Khazanah wish to record our most sincere appreciation and gratitude for Tan Sri Nor’s sterling contributions and service to Khazanah and the nation," it said.

    The 70-year-old Nor Mohamed’s 15 years of service on the Khazanah board of directors make him the longest serving board member"

    Another sad consequence of an act gone sour. The RCI. As always. There must be khair in it.

    1. This RCI.is like a double edges aword whichs can cur both sides
      When properly initiated can translate into votes during election
      However, this in particular is done in haste which claimed casualty in one of its own member
      In conclusion they lost both votes and a member
      How many votes will be lost in the coming future



  8. Semua olang atak tipu maa aa ,tatak kila siapa lea aa .

    Doktor atak tipu jugak maa aa ,manusia memang itu macam maa aa,atak lebih untung punya mesti mau maa aa .

  9. 'that implied that all specialists in private medical practice in Malaysia are cheats.'

    - who said so alamakkkk