Running away from tax? Don’t show it on social media!

Anyone selling a property in Malaysia these days would have to pay the Real Property Gains Tax (RPGT) even if the period of holding has exceeded 5 years.  Here’s an earlier article how to calculate RPGT Selling a property may be easier to tax because these are documented. What happens for some things which are not documented? Or deliberately NOT documented? Well, the tax department may be looking at what we post in social media! How do they know? Well, if we show our new sports car worth RM1 million but our reported income was just RM100,000 a year? This will allow them to ascertain if you were hiding some ill-gotten wealth or even running away from paying tax.
Here’s the report in TheStar  France’s Budget minister Gerald Darmanin told weekly business TV show Capital  that the tax administrators will start searching through social media accounts in early 2019, a pilot project in the fight against tax avoidance. He said, “(The fiscal administration) will be able to see that if you have numerous pictures of yourself with a luxury car while you don’t have the means to own one, then maybe your cousin or your girlfriend has lent it to you … or maybe not.” This will be one measure which is part of a law France enacted last month designed to strengthen the authorities’ capacities to fight tax fraud and permit a wider use of online data to bolster fiscal controls. (WOW!) Here’s the report in TheStar 
Many years ago, many employers told me that they search the social media of the candidates they were about to hire. Those with questionable lifestyle will NOT be hired. I told them that it’s not that fair because many times, a professional at work does not mean they could not be a little more ‘lively’ after working hours. However, social media is firmly in the assessment for many employers these days and this is not just in Malaysia. Now… we have even the tax administrators who’s looking at what we post online. Perhaps what my close friend said many years ago is true today and tomorrow. “I do not wish information about my lifestyle available to people whom I do not know.” Happy posting… (not that new handbag maybe…)
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written on 13 Nov 2018
Next suggested article:Even taxi licenses are over RM4 million


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