This Ruling applies in respect of wilful evasion and other related offences under section 114 of the Income Tax Act 1967. This Ruling is effective from 1 January 2001.

Generally, where a false statement or false entry or deliberate omission of an entry is made in a return or in any books of account or other records maintained by or on behalf of any person, that person may be presumed to have made that false statement or false entry or deliberate omission with the intention to evade tax.

Wilful evasion of tax means any action or deed deliberately performed or done with the purpose or intention of evading or assisting any other person to evade tax, and (without necessarily displacing or superseding the general meaning of this statement).

A person who assists in, or advises with respect to, the preparation of a return where the return results in an understatement of the liability for tax of another person may be liable for prosecution and, unless he satisfies the court that the assistance or advice was given with reasonable care, is liable to a fine of not less than RM2,000 and not more than RM20,000 or to imprisonment for a term not exceeding three years or to both.

The above Public Ruling can be viewed and downloaded from the IRB’s website at the following link: http://www.hasil.gov.my/pdf/pdfam/PR8_2000.pdf