Ten officers from the Inland Revenue Board (IRB) visited the office of Magnolia Sdn Bhd (Magnolia)...
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Ten officers from the Inland Revenue Board (IRB) visited the office of Magnolia Sdn Bhd (Magnolia) this morning without any prior notice. On arrival, they informed Magnolia's finance director, Rahmat, that the company is under tax investigation. As you are the tax adviser of Magnolia, Rahmat contacted you immediately. As he and his finance team are busy preparing for a corporate transaction, Rahmat is wondering whether it is possible to ask the IRB officers to come back at a later date. Required: Explain the difference between a tax audit and a tax investigation in terms of purpose and prior notice and whether it is possible for Magnolia Sdn Bhd to request the Inland Revenue Board (IRB) to defer the investigation procedure. (4 marks) Ten officers from the Inland Revenue Board (IRB) visited the office of Magnolia Sdn Bhd (Magnolia) this morning without any prior notice. On arrival, they informed Magnolia's finance director, Rahmat, that the company is under tax investigation. As you are the tax adviser of Magnolia, Rahmat contacted you immediately. As he and his finance team are busy preparing for a corporate transaction, Rahmat is wondering whether it is possible to ask the IRB officers to come back at a later date. Required: Explain the difference between a tax audit and a tax investigation in terms of purpose and prior notice and whether it is possible for Magnolia Sdn Bhd to request the Inland Revenue Board (IRB) to defer the investigation procedure. (4 marks)
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Tax audit is done to ensure that the information related to income expenditure a... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
Posted Date:
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