•Prior
to 2000, income tax is assessed on the income earned in the preceding year and
is assessed by the IRB according to the official assessment system; and known
as preceding year assessment (PYA)
•Effective
on year 2000 onwards, Current Year Assessment (CYA) system being used to assess
the income tax based on the income earned in the current year. It means that
income derived in year 2000 will be assessed and liable to tax in the year
2000.
•Due
of that, Self- Assessment System (SAS) being introduced; where the taxpayer
works-out and pays his own income tax.
•Why?
i. to improve voluntary tax compliance
ii. To reduce administrative cost/ lessen
burden of the IRB
iii. To enable prompt collection of taxes
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