Taxation Policy in Malaysia

It used to be one of the most sophisticated tax regime in the world - Malaysia adopted the traditional British way denominating the government's revenue. Corporate tax to be collected way after companies report profit. What next, when companies chose to report otherwise. There are more than 1000 PLC and GLC. Both categories may report prudently and relatively close call to the actual number if not always on the positive side, and hence income tax governed. But what happened to those small and medium enterprise and even with large corporation, units of MNC in Malaysia that is not listed? These are the companies that to be cornered.

The numbers indicate that find tuning and manovering of account pay attention
Malaysia is paving its way to a more modernized and developed nations. In material of the words and jargons, the basic thing is that once must lower down the cost thereby increasing the net contribution of businesses.

The Government should establish conducive environment for the business community. Once has to seek 'Partnership' in this weathering economy crisis. Large percentage of corporate tax would make business people attempt to report lower profit hence lower tax payment. It is no point to employ more tax officers - locating the tax evaders. Instead, we should spend this money in paying the construction cost for highway and not toll expressway.

There are occasions in which, companies performed badly; thus not contributing any corporate tax. Where as the Government require to pay all general expenses to house the civil servants, maintenance of roads, hospitals, PBT, etc.... While the general business communities in routining their business activities, the Government may find that it is a "LOSE-LOSE" scenario.

Questionaires posted and the feed back is that: VAT is the preferred choice, together with lower corporate tax. Now, the question is 'how low is LOW?' and how much we got to charge on the VAT.. I believe MOF had done extensive research on the numbers. Well, let the number speaks by itself.

While globalization and borderless trade establishes, once must acquire competitivenes, not thru circling the border within, instead, seeking openess policy and let more people to transit here; and transacting their activities here. There is this idea come across to me that, this country: should it be corporate tax (zero) but GST/VAT of 10%, I wonder how much the government can collect every year.
Would like invite more comments....
Regards
Lam Chun Chang25.5.2009

Obama - the leading change

The wind of change continue to blow across the American Continent. The author analyse the broad picture of the Obama Scenario in America. Siding the voting pattern in this election, the Democratic camp has successfully cornered the young voters. Much attention has put into internet, and its blog.. facebook, website, etc; whilst successfully overshadowed those borderline states. Anyway, the traditional strong hold remain untouched by Democrate (such as Texas,Oklahoma,etc i.e. the centre part of US). While Democrate managed to hold on to the West Coast and East Coast States, it manages to foster strong support from Hispanic voters from Florida and New Mexico, plus the young voters age between 18-29, that's the killer shot.

Similarly, Pakatan Rakyat put high attention on the net, with blogger covering the thorough coverage and explosive publicity within, win over 5 States and denying 2/3 majority. I presume, given another 4-5 years, with the young voters catching up the 21 year old limit, there should be change within.

Bravo, do it best, manage carefully, do it prudently next few years, there should be landslide win next...

Lastly, I was a China-pek, now I am a Malaysian, I love this country, this is my motherland..I see the bright light in the future, keep it up YB, this country really need more young and energetic people like u; to change... Mind about what we can contribute to this country that we belong to, not what this country can do for you..