The Borders Are Now Open: Can You Really Go Overseas for a Vacation?
Published: Fri, 06/10/22
The Covid-19 pandemic has gone on for two years. More and more countries are opening up...
The Borders Are Now Open: Can You Really Go Overseas for a Vacation?
The Covid-19 pandemic has gone on for two years. More and more countries are opening up their borders and welcoming tourists. Malaysia has recently joined these countries as well. Now that our borders are open, we bet you
can’t wait to go overseas for that long overdue vacation.
Just imagine it. You’ve booked your flight and taken out your passport that has been collecting dust somewhere in your house. With a refreshing drink in one hand, you prepare to board the flight that will take you on that
long-awaited adventure. Just as you reach out a foot and prepare to take that much-anticipated step onto your plane, an immigration officer stops you.
“We are sorry. You are banned from leaving the country because you have overdue taxes that have not yet been paid,” said the officer solemnly.
When we go overseas, we do not just have to pack our luggage, we also have to check whether we are being imposed a “stoppage order” due
to taxes that have not been settled.
A stoppage order is a travel ban order at international exit points imposed by the Director General of the Inland Revenue Board (IRB) of Malaysia. Section 104 of the Income Tax Act of 1967 provides that individuals or
company directors who fail to settle their income tax, real property gains tax, or corporate tax will be forbidden from leaving the country.
How to check if you’ve been imposed a stoppage
order?
Under normal circumstances, a stoppage order certificate will be issued to the last address registered by the taxpayer with the IRB.
After that, submit your receipt to the IRB branch that handles your tax file. (Do make sure to submit the receipt 7 days before your travelling
date to prevent any delays in processing your submission.)
Solution 2: Apply for a temporary travelling release
The following conditions must be met for the application:
Present yourself at the IRB branch that handles your tax file 5 days before your travelling date.
Pay at least 50% of the outstanding tax payable.
Submit an application letter that includes the travel destination, the purpose of your travel, and the duration of your visit.
Solution 3: If you are stopped at the airport or any immigration exit, you can do the following
Contact the Emergency Contact provided by IRB for further assistance.
Penalties for Leaving Without Paying
Pursuant to Section 115 of the Income Tax Act 1967, if an immigration or police officer determines that an individual leaves, has previously left, or intends to leave the country without settling
taxes, the following penalties will be imposed on the taxpayer:
A fine between RM200 and RM20,000
Imprisonment for up to 6 months of both
The authority also reserves the right to arrest the taxpayer at any time they suspect the individual plans to not comply with Section 104 of the Income Tax Act
1967.
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