The Malaysian 2024 Budget, which is themed “Madani Economy: Empowering the People”, was announced on...
The Inland Revenue Board (“IRB”) launched the Tax Corporate Governance Framework (“TCGF”) on 1 March 2022. Subsequently, the IRB issued a media release on 15 April 2022 announcing the publication of the TCGF and accompanying guidelines.
The introduction of the TCGF is part of the IRB’s initiative towards adopting a co-operative tax compliance process that is both fair and effective in Malaysia. The key takeaways of this programme are outlined below.
Tax Governance Framework
Corporate governance encompasses the rules, relationships, systems and processes under which decisions are made and authority is exercised and controlled within an organisation. It comprises the mechanisms by which businesses, office holders and those in control are held accountable.
Tax governance is a subset of corporate governance. A strong tax governance framework sets out the processes within an organisation to identify and assess tax risks, as well as the appropriate actions to mitigate the impact of those tax risks. An effective tax governance framework can cultivate a level of confidence that the organisation is reporting and paying the right amount of tax. This will provide greater certainty to the Tax Authority in terms of tax risk management and reporting by the business entity.
To-date, the IRB has published the following documents on its website on 15 April 2022.
- Tax Corporate Governance Framework dated 11 April 2022 (“Framework”)
The Framework intends to provide an overview of the IRB’s expectations on the Tax Corporate Governance process and structure that should exist in organisational settings. The Framework also sets out the processes and timeframe for the TCGF Programme.
- Guidelines to the Tax Corporate Governance Framework (“Guidelines”)
The Guidelines provide a detailed guidance to organisations in designing and implementing their TCGF. It is meant to supplement the Framework through a more in-depth explanation of the principles and processes in the Tax Corporate Governance practice.
Feel free to download the full version:
The Ministry of Finance has announced that the SVDP 2.0 will run from June 6,...