The IRB states CP500 instalment notices are issued based on data from Income Tax Returns, urging accurate reporting to avoid incorrect assessments.
PUTRAJAYA: The Inland Revenue Board (IRB) has clarified that Instalment Payment Notices (CP500) issued to taxpayers are based on information reported in their submitted Income Tax Return Forms (ITRF).
In a statement, the IRB explained that CP500 is issued only to taxpayers who report income from both employment and non-employment sources, as stipulated under Section 107B of the Income Tax Act 1967.
The board acknowledged receiving complaints from taxpayers who received CP500 despite having only employment income.
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A subsequent review found that these taxpayers had made inaccurate reporting in their ITRF.
“Part of the employment income was reported as income from dividends, interest, rent, royalties, pensions, annuities and any other gains or profits,” the IRB stated.
For individual taxpayers with only employment income who have received CP500, the IRB advised submitting an Application Form for Amendment of Instalment Payments (CP502).
This form must be submitted together with the Form EA/EC (Statement of Remuneration from Employment) to the CP500 Help Desk via email.
The IRB reminded taxpayers to report income accurately in the ITRF to ensure efficient tax administration.
“The IRB remains committed to strengthening support and guidance for taxpayers to facilitate the transparent and efficient fulfilment of tax obligations,” it said. – Bernama
