Tax players worry that KL's tougher tack on dodgers blurs evasion line

Kuala Lumpur

MALAYSIA'S taxman has tightened the screws on tax dodgers to not just increase compliance but also to meet rising collection targets, say tax sector players.

But to do so, the Inland Revenue Board (IRB) is adopting a stricter interpretation of tax laws, they added.

They expect more measures to come, but are concerned about whether the taxman is blurring the line between tax evasion and avoidance.

Taxand Malaysia chairman Veerinderjit Singh said: "Warning of tougher penalties is fine; sensationalising issues gets the message across. But the message that companies or people are evading tax is not right, because they can be subjected to criminal penalties."

He said that tax errors often happen because of clerical oversight, for example, in the claiming of a deduction that is not allowed; or it could be a matter of interpretation, such as whether a payment is …