KUALA LUMPUR, Oct 20 (Bernama) -- Of late, there have been many discussions on how doctors, particularly those who are attached to private hospitals, are to be taxed. The core issue is whether the specialist income in prior years has been correctly taxed as company’s income or whether it would have to be reassessed under the individual. Managing these issues can be challenging given that 15 December 2016 is the deadline for affected medical practitioners to settle whatsoever outstanding taxes plus penalties on a voluntary basis so that the concessionary penalty rate could apply.

Against this background, Deloitte Malaysia organised a half-day tax workshop earlier today at the Deloitte office in Kuala Lumpur, discussing how medical practitioners can build a tax-aligned medical practice. During the workshop, various tax-sustainable strategies for medical practices were discussed, including the challenge of how the 15 December 2016 deadline could be met in a practical way.

Deloitte Business Tax Partner, Tan Hooi Beng explained that whilst the tax authorities have a very wide power under the tax legislation to disregard any transactions that are entered into with tax savings or avoidance as the main objective, he believes that the particular provision will not be simply used as “weapon of all seasons” by the tax authorities. He said it is trite law that if a transaction is capable of explanation by reference to ordinary business without necessarily being labelled as a means to avoid tax, then the arrangement does not come within the anti-avoidance provision.

Meanwhile, Deloitte Tax Controversy and Dispute Partner, Chow Kuo Seng emphasised the importance of getting the books in order so that an amicable solution could be achieved by 15 December 2016. He stressed on the importance of early preparation such as reviewing the existing service contracts and re-computation of tax position followed by a robust discussion and negotiation with the tax authorities, all of which will be key. Several important GST issues were also discussed by Deloitte GST Director, Chandran Ramasamy.

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SOURCE : Deloitte Touche Tohmatsu Limited 

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--BERNAMA