“It is not the practice of IRB to tax any individuals or companies based on perceived wealth or rumours of income,” he said in a statement this evening.
“Even if they had brought their income, which is derived from overseas, into Malaysia, this will be exempt from income tax.”
He said if any of their incomes were to be discovered to be subject to Malaysian tax, the agency had the power to assess them within five years, or at any time if fraud, wilful default or negligence was proven.
Johari had earlier today told the Dewan Rakyat that Low and Reza had not declared any income in the country, in response to Lim Lip Eng (DAP-Segambut), who asked if the duo had paid any income tax and if their financial sources were ever investigated.
In the follow-up statement that he issued, Johari said Malaysia’s tax collection system was based on the premise that if an individual or company derived income from the country, it would be subjected to income tax.
He said income derived from outside Malaysia and remitted into the country would be exempted from tax.
“This applies to all individuals or companies without any exceptions.”
Johari also said Malaysia has adopted a self-assessment system, where individuals and companies were required to determine and compute their chargeable incomes and tax liabilities.
“In the case where a person fails to make any declaration, IRB has a dedicated team to continuously analyse and identify this.
“Severe penalties will be imposed once IRB has ascertained that tax is payable,” he said.
Johari: Jho Low, Riza Aziz never declared income in Malaysia