Bankrupt taxpayers still qualify for BR1M, Putrajaya says

BY YISWAREE PALANSAMY
Malaysian taxpayers who have been declared bankrupt can still qualify for government aid such as BR1M. — Reuters pic

KUALA LUMPUR, March 20 — Malaysian taxpayers who have been declared bankrupt can still qualify for government aid such as 1Malaysia People’s Aid (BR1M), the federal government said today.

“For whoever individual taxpayers who have been declared bankrupt and are registered with the Insolvency Department, they can still receive aid from the government such as BR1M,” said a parliamentary written reply from Prime Minister Datuk Seri Najib Razak, who is also finance minister.

The reply was in response to Putatan MP Datuk Marcus Mojigoh who asked the finance minister to state the Inland Revenue Board’s tax collection sum for last year and the amount yet to be collected.

He had also asked if Putrajaya intends to declare those who fail to pay their taxes as bankrupt, the number of those already declared so, as well as the type of government aid they are receiving.

In the reply, Najib said that up till December 31 last year, 116 bankruptcy cases were registered with the Insolvency Department, to be wound up by the Inland Revenue Board, involving unpaid tax amount of RM14.40 million.

"Of that number, 93 cases with RM11.32 million in due taxes involve individual taxpayers, whereas 23 other cases with an outstanding amount of RM3.08 million involves corporate taxpayers," he said.

For the same period last year, Najib said IRB managed to collect an estimated RM114.2 billion in taxes, whereas due and owing income taxes amount to RM6.81 billion.