KUALA LUMPUR (Bernama) — The Goods and Services Tax (GST) will see accountants and tax agents play an important role before and after the new tax regime is implemented on April 1, 2015.
The implementation of GST has a wide-ranging implications on businesses and companies are required to get their businesses a GST-compliant financial system and GST-accounting sofware.
“All authorised accountants must acquire licence to conduct the GST calculation,” said the Royal Malaysian Customs Department GST Director Datuk Subromaniam Tholasy.
However, Subromaniam said more tax agents were needed before the implementation of GST to conduct courses and advice the businesses on procedures and the significance of the new tax system.
“Currently, we have 2,000 tax agents and we need another 3,000 agents…a total of 5,000 will be a good number,” he said.
He said that the Customs is working closely with Malaysian Association of Tax Accountants (MATA), Chartered Tax Institute Of Malaysia (CITM) and Malaysian Institute of Accountants (MIA).
He assured that the department could reach the targeted number of tax agents before the implementation date next year.
ONLY APPROVED TAX AGENTS CAN REPRESENT CLIENTS
When contacted by Bernama, he said that: “Under Section 170 (1) of GST Act Licensing, no person shall be permitted to act in Malaysia on behalf of any person for any matter under this act unless he is a tax agent provided that this subsection shall not prevent any other person to represent any party to an appeal under section 141 (representation at hearing).”
An individual who has his usual place of residence in Malaysia may apply to the Minister for an approval to be a tax agent in accordance with the prescribed conditions.
On top of that, companies especially those with turnover exceeding RM500,000 need to redouble efforts in preparing themselves for implementation of the GST next year.
The Executive Director, Tax Advisory and Management Sdn Bhd (TAMS) Yong Poh Chye said that only 50 per cent of the companies in the country were GST ready.
“Companies need to train their staff on GST, acquire GST compliant accounting software and commence trial runs by January 2015,” he said at the National GST Conference jointly organised by the Malaysian National News Agency (Bernama) and TAMS, recently.
BUSY YEAR FOR ACCOUNTANTS, TAX ADVISORS AND IT EXPERTS
On another note, The Chartered Tax Institute of Malaysia (CTIM) chairman, S.M. Thanneermalai said accountants, tax advisors or agents and IT experts would see significant workload increase in 2015.
“I would say they will experience a significant increase in activities and ultimately their businesses will also increase,” he said.
As their roles were interrelated, he said, these three professional groups of people would have to work closely before and after the GST implementation.
“The payment invoice that being issued now will not be acceptable under GST…also you have to change your accounting system charts to collect data that will go into tax returns.
“This is why all of them come in together,” he said.
At the moment, related professional bodies from these three main sectors are working closely to organise workshops, training and seminars before the implementation of GST.
“I think they will get to sort out 90 per cent of the issues and confusion at the initial stages of introduction by next September…by end of 2015 most will get to know how of the tax system,” he said.
— BERNAMA
