Imposition Of Penalties And Increases Of Tax

Disposer

1. Penalty under subsection 29(3) of the RPGT ACT 1976
   
   Penalty under subsection 29(3) of the RPGT Act 1976 may apply if the disposer or acquirer :
   
   1. Fails to submit completed Form CKHT 1A / CKHT 1B within 60 days after the date of disposal of the asset;
   2. Fails to submit completed Form CKHT 1A / CKHT 1B after the extended date of permitted time; or
   3. The disposer fails to declare the disposal of a chargeable asset.

   
   Penalty can be charged up to 3 times the amount of tax charged.

2. Penalty under subsection 30 (2) of the RPGT ACT 1976
   
   1. Where a person makes an incorrect return or gives incorrect information on the disposal of asset, the DGIR may imposed penalties under subsection 30(2) of the RPGT Act 1976.
   2. The penalty may be charged equal to the amount of tax under declared (maximum of 100%).
3. Imposition under subsection 14(5) of the RPGT ACT 1976
   
   1. A disposer will be subject to an imposition under this subsection if making an incorrect return under subsection 13(6) of RPGT Act 1976 which causes the acquirer fail to remit the payment under subsection 21B(1) or (1A) of the RPGT Act 1976.
   2. The imposition is 10% on the amount of tax charged.

Acquirer

1. Imposition of Penalty Under Subsection 21B(2) RPGT Act 1976 and Civil Legal Action
   
   1. The acquirer may be subject to a tax penalty under subsection 21B(2) of the RPGT Act 1976 if they fail to retain and make payment of an amount under Section 21B of the RPGT Act 1976 within 60 days after the date of asset disposal. The penalty that may be imposed is equivalent to 10% of the amount that has not been paid.
   2. Tindakan guaman sivil di bawah Seksyen 23 ACKHT 1976 boleh diambil terhadap  pemeroleh ke atas tunggakan hasil yang gagal dibayar dalam tempoh masa yang telah ditetapkan dan ia menjadi hutang kepada kerajaan.