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9.9 Tax Investigation Framework What is Tax Investigation Tax investigation is an inspection of taxpayer's business and / or individual books, records and documents. This inspection is to ensure the right amount of reported income and paid taxes required under laws and tax provisions. The investigation will be carried out only in cases where is suspected on the basis of precise and clear evidence that the tax payer is deliberately trying to avoid paying taxes or having committed an act of willful deceit under the Act, such as real property gains Tax Act ITA and 1976, the Petroleum(Income Tax) Act 1967, Promotion of Investment Act 1986, the Stamp Act 1949 and the Labuan Offshore Business Activity Tax Act 1990. There are two…show more content…
Where existing fiscal agent representing taxpayers a separate letter of authority required to work with IRBM and tax agent / representative statements taken during interviews / meetings with the IRBM can be used in litigation tax criminal investigation. Make sure all correspondence between the IRBM and fiscal agent / Representatives are in the "Without Prejudice" basis, with except in cases of criminal tax investigations they are allowing taxpayers to take notes of any conversations or interview and a copy of the licensing interview or discussion notes within the application, such as copy signed by both parties and the investigating officer shall explain all the facts, agreements, the issues discussed are confidential between the IRBM and the taxpayer or its appointed agent. In cases of criminal tax investigations, however, a copy of the interview / Note the discussions and recording the testimony of witnesses can not be given to the representatives of taxpayers or witnesses. (Hasil, 2007). 4. Finalisation of Tax Investigation Upon finalisation of a civil tax investigation case, a written settlement agreement will be entered into between the Director General of Inland Revenue (DGIR) and the taxpayer. The following information should
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