The Star Online: Business
The Star Online: Business |
- Achieving Budget 2012 goals
- UMW Toyota Motor’s new facility in Bukit Raja part of RM1bil investment
- French bank BNP Paribas sets up ops in Malaysia
| Posted: 12 Oct 2011 06:20 PM PDT BUDGET 2012 aims to reduce the budget deficit from the estimated 5.4% of GDP for 2011 to 4.7% for 2012. The deficit reduction will represent a big step towards a balanced budget, and bring Malaysia closer to the pre-2008 deficit levels (2008 budget deficit was 4.8%). This will have a positive effect on the perception of Malaysia, which is especially important in view of the uncertain global economic outlook for 2012. The budget has been termed an "election budget," and in some ways that is true with a little something for everyone. While there was a lot of discussion before the budget about the imminence of the good and service tax (GST), no new taxes were announced. Neither was there a significant increase in any of the existing taxes, be it income tax, duties, sales tax, excise, service tax or stamp duty. The exception was the proposed increase in real property gains tax (RPGT) rate from 5% to 10% for gains on disposals of real property interests held for two years or less. However, this was less a revenue-generating measure than it was a tool to help curb speculation for properties, noting that RPGT revenue for 2011 is expected to amount to a modest sum of RM369mil. In order to achieve the goal of a 4.7% deficit, without new taxes and direct measures to increase taxes, there will be a tendency to focus a lot more on how to increase the effectiveness and efficiency of the current tax administration; how to make the most of the existing tax regime. To quote the Prime Minister: " an effective and efficient tax administrative system is a precondition to widen the tax base and increase compliance by tax payers. Apart from strengthening the ICT systems of revenue collection agencies, enforcement measures will be enhanced through the implementation of integrated operations with other relevant agencies." This points towards a greater focus on strategic tax enforcement with: Greater use of ICT to elicit more systematic and targeted analysis of taxpayer profiles and history to better identify potential non-compliance; and More cooperation and sharing of information between regulators to increase the efficiency tax audits. There are also several proposed legislative changes to the tax legislation which enhance the powers for tax enforcement, including: To provide the director general of Inland Revenue (DGIR) the power to disregard any information which is provided late, past the time specified in the DGIR's notice demanding such information. Such information will also be barred from being used to appeal against a tax assessment, before the special commissioners of income tax or court. Presumably this proposal is to ensure a more speedy finalisation of taxes, but the implementation of this proposal needs to be even-handed and reasonable, lest taxpayers' basic rights are unfairly eroded. To extend the DGIR's powers of access to computerised data taxpayers must provide information such as the password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of the computerised data. To require specified information on payments made to agents, dealers and distributors, to be disclosed in a prescribed form and provided to the payees for tax purposes. One reason for this is to facilitate better monitoring of income reporting. To permit the DGIR to impose tax payments where a taxpayer has failed to furnish a tax return or where the DGIR has reason to believe that a return is incorrect. The scheme is novel in that the DGIR will have the power to collect taxes even before a tax assessment is issued. These measures are consistent with the trend observed in the last decade where the Inland Revenue Board's powers of access, enforcement and collections are enhanced. The challenge is to ensure the right balance is struck in the exercise of these powers by the relevant authorities. It would not be complete to mention several positive developments for taxpayers in the area of tax administration including:- Compensation of 2% on the amount of tax refunded late by the IRB, from year of assessment (YA) 2013; and Reduction in the time for tax audits from six years to five years, from YA 2013. This is an inclusive budget and has the interests of many needy sections of our society. The achievement of the goals would partly rely on an efficient tax administration, and it is hoped that more details on how these proposals will be implemented, in the interest of transparency and greater certainty for taxpayers. Yeo Eng Ping is the national tax leader of Ernst & Young Tax Consul-tants Sdn Bhd. Full content generated by Get Full RSS. |
| UMW Toyota Motor’s new facility in Bukit Raja part of RM1bil investment Posted: 12 Oct 2011 06:05 PM PDT KLANG: UMW Toyota Motor Sdn Bhd has allocated more than RM200mil to develop its new integrated quality hub (IQH) facility in Bukit Raja, Klang. The cost of the 35-ha IQH facility, aimed at improving the delivery lead time of vehicles to customers, is part of the company's RM1bil three-year investment plan until 2013. The IQH consists of a centralised vehicle stockyard, accessory centre, a 2.1-km test track, body and paint centre and a production parts warehouse. The centralised vehicle stockyard, which receives and delivers a total of 420 cars per day, has a capacity to stock 9,500 vehicles at any one time. The test track allows vehicles to be tested at speeds up to 140km per hour, and evaluation includes performance and handling, hill climbing and different road conditions. The accessory centre can fit 142 combination accessory items such as navigation and audio systems, and aerokits which are installed based on customers' requests. The centre allows customers to confirm their desired accessories five days prior to the delivery of vehicles to the respective outlets in Peninsular Malaysia. Final inspection of the vehicles is also performed at the IQH facility to ensure the Toyota quality standards are met. Much of the IQH facility has been completed, while the body and paint centre is due to commence operations by the first half of 2012. The IQH facility will be equipped with 57 work bays and state-of-the-art equipment. A production parts warehouse is expected to start operations by the second half of 2012. "We are confident that with this new facility, the improved processes and highly skilled staff would benefit our customers as well as improve customers' satisfaction. "We are also committed with the company's theme for this year, One Team - Customers First and will continue to produce high quality products and services in the future. "This will further strengthen our position as the top-selling non-national brand in the country," said UMW Toyota Motor chairman Tan Sri Asmat Kamaludin during a recent opening ceremony of the IQH. Also present were International Trade and Industry Minister Datuk Seri Mustapa Mohamed, his deputy Datuk Muhkriz Mahathir and Japanese ambassador Shigeru Nakamura. "The new facility creates additional job opportunities for 430 new team members," added Asmat. He pointed out that all the operations at the IQH facility were designed with the Toyota Production System in mind. The company also plans to launch a locally assembled Toyota Camry by mid-2012. Full content generated by Get Full RSS. |
| French bank BNP Paribas sets up ops in Malaysia Posted: 12 Oct 2011 06:05 PM PDT PETALING JAYA: French banking group BNP Paribas has set up its locally incorporated bank in Malaysia. BNP Paribas Malaysia Bhd was one of the five foreign banks awarded full commercial banking licence to operate in Malaysia, and became fully operational on June 1. "Our clients today are highly sophisticated and they want the freedom to conduct their business anywhere in the world. "We are proud of the unique nature of our bank where we can offer a global network to our local markets with diversified and best-in-class solutions," BNP Paribas group executive committee member Jacques d'Estais said in a statement. Headquartered in Kuala Lumpur, BNP Paribas Malaysia will focus on both domestic and multinational corporate and financial institutions to provide the full suite of banking products and services. It also intends to support its Malaysian clients in their overseas expansion by leveraging on BNP Paribas' presence in more than 80 countries. The bank was launched by Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz. The event was attended by its local and multinational clients, officials and senior management. BNP Paribas Malaysia chief executive officer Krishna Chetti said with the new banking licence, the bank aimed to become one of the best foreign banks in Malaysia. "We have recruited a very experienced team. The domestic experience, coupled with BNP Paribas' recognised product capabilities and global reach, make a compelling combination," he said. Full content generated by Get Full RSS. |
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