10-point assessment of tax evasion

PETALING JAYA, Mar 15 (Sin Chew Daily) — Local taxation expert Koong Lin Loong said the Internal Revenue Department’s target was not wealthy people but tax evaders.
“Whether a person is evading tax is normally assessed with the ten-point criteria, and assets of unidentified origins will be their focus of investigation.”
Koong told Sin Chew Daily a taxpayer must ensure that his accounts are clear and that he keeps a good record of them while being alert that his statements could be checked every year.
“You may be blacklisted or barred from traveling overseas. If you have to pay fixed sums of loans every month, you will also need to check with CCRIS (Central Credit Reference Information System) to make sure you have not been blacklisted.”
The following are the ten-point criteria to assess whether an individual is a potential tax evader:
– Investing in and possessing a large number of properties
– High rental income
– Frequent purchase and disposal of properties
– High media exposure but unproportionately low declared income
– Possession of luxury cars and bidding of special plate numbers
– Most businesses declared as loss-incurring
– High dividend income
– Shareholder of many companies
– Frequent and generous donations
– Reported by third party individuals