How to Find the Right Tax Agent for Your Company? - Incorp

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How to Find the Right Tax Agent for Your Company?

January 15, 2022 incorp 0 Comments

Taxes aren’t something new… Especially when your company starts generating large sums of profits each month. This is when your company’s local tax agent makes a visit! These individuals are tasked with numerous responsibilities such as the general examination of income and expenditure of a business/organization plus more.

 

But can just about anyone become a tax agent, or how do you even appoint one? This written article is specially catered in shedding light on such topic! With that, let’s begin…

What are Tax Agents?

For those new on the subject of taxes, you may be wondering, what exactly are tax agents? Well, tax agents are technically professional accountants but unlike their standard counterpart, they are individuals who have been approved by the Minister of Finance, according to Section 153(3) of the Income Tax Act 1967. To be elected, potential tax agents must prove to the Minister that they have adequate exposure and experience in the field of tax.

 

The approval process in becoming a tax agent comes with a combination of several prerequisites to be fulfilled such as an application documenting the potential tax agent’s qualifications, professional experience, and more, along with an interview to establish and confirm their level of technical competence. 

Key Responsibilities & Requirements of Tax Agents

Pertaining to their key responsibilities and continuing from paragraph 1, tax agents specialize in the following tasks which are: –

i.  Impressing upon clients on their obligation to pay their dues as required by the law

ii. Communicating and liaising with tax authorities (Inland Revenue Board of Malaysia) on tax matters relating to their clients

iii. Attending Field Audit at client(s)’ premise

iv. Attending investigations, interviews, negotiations, and proceedings

v.  Filing appeals and attending negotiation hearings and further appeals

 

However, prior to even taking up their roles, individuals would be required to fulfill the following list of prerequisites prior to becoming officiated as tax agents such as: –

i.   Members of MAICSA with 5 years of practical experience in taxation works after being admitted as official MAICSA members, be it in the private or public sector (Section 153(3)(c) of the ITA

ii.  Attended the most recent Annual Budget seminar organized by IRB or CTIM or MATA

iii. Acquired 40 CPE/CPD within the previous one year

 

Regarding to the tax agent’s Code of Conduct as bore by the following three values, Integrity, Competency, and Professional Advice for more detailed information on them can be found via the given link: – Tax Agent’s Detailed Code of Conduct

 

That said, one should be cautious due to numerous cases of fraudsters posing as tax agents, verifying them to determine their status on whether they are classified as legitimate tax agents can be found through this link: – List of Active Tax Agents.

Process of Appointing Tax Agents

Finally, we come to the stage of appointing tax agents… To elect a tax agent, you’ll be able to proceed with either of the following two approaches: –

 

a. For Appoint of First Tax Agent(s): –

i.   Gather the Tax Agent’s information and the company’s E&C No.

ii.  The CoSec (company secretary) prepares the resolution and appointment letter

iii. The signed appointment letter is then submitted to the new Tax Agent

iv. Wait for confirmation of appointment from new Tax Agent

v.  Appointment of Tax Agent updated in CoSec records (Minutes Book)

 

b. For Appointment of Subsequent Tax Agent(s): –

1. Gather the appointed Tax Agent’s information and the company’s E&C No.

2. The CoSec (company secretary) prepares the resolution, appointment letter, and termination letter of the existing Tax Agent

3. The signed appointment letter is submitted to the new Tax Agent, while the signed termination letter to the existing Tax Agent

4. Wait for confirmation of appointment from new Tax Agent and Resignation letter from existing Tax Agent (if any)

5. Update the change of Tax Agent within the CoSec records (Minutes Book)

With that, appointing the right, legitimate tax agent for your company can be a rather important feat and investment, considering that many unlicensed and fraud tax agents are out there, which could spell financial ruin for both you and your company in the long run if proper caution isn’t taken in choosing one.

 

Instead, why not allow Incorp, your trusted go-to business partner take care of all the heavy-laden paperwork and process of appointing one? With 38 years’ worth of experience in corporate secretarial matters, we are deeply affiliated with a team of promising and highly competent professional tax agents, capable in providing you with honest and accurate corporate tax readings that you deserve!

 

Interested? Please kindly email us your queries via our email or WhatsApp located below and we’ll revert to you as soon as possible: –

Email: secretarial@elegant.com.my

WhatsApp: 017-2727118

 

 

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