Dear
Sirs,
Is
the GST need to abolish or to replace with another form of GST model ?
Good
Service Tax can be interpreted the registered supply goods and services
That
made in the course or furtherance of any any business by a taxable person
incurred in Malaysia. Thus, in a simplified meaning, those product and services
are subjected to GST imposement due to the acquisition of stocks and converted
into saleable products and services, where every stages of the purchases and
saleable activities and phases would subjected to 6% of the GST rate imposition
by taken into account of inflation rate that is placed inside the leads and
substance of purchases and sales.
How
was the taxable and chargeable imposition of taxation rate ?
Where
every claim output and input tax would require net off figure claims in tracking all the purchases and sales entry
transaction. However, the rationale behind is just to want to capture the
output(sales) tax invoices@ 6% lump sum that incurred in the organization.
Where such GST liabilities would comprises of purchases material, overhead and
labour charges. Thus, it required quite troublesome administration cost and
overhead to track those records of input and output tax and just to arrive the
real good service tax (GST).
I
would like to protest this concept of GST Malaysia. It just because like an
supply of order of Teh Tarik, Kopi or
Milo in the OldTown Coffee shop. The supply of the water was being incurred and
paid to Jabatan Bekalan Air, however the supply of goods such as the Coffee,
Milo and Teh Powder already incurred and paid by the owners. Where such scope
of GST that are stated in the wording of “supply goods and services = It likes
the plain water and coffee powders” already paid and owned by the owner of the
shoplot of OldTown.
Can
I question to the IRB Malaysia whether such two element of the product and
services already had been paid out and discharged such risk and rewards to the
owners who make such payment. The controllable benefits already being
discharged by the owners of the SHOPLOT to collect the yield income that are
generated from that cup of Coffee, Milo and Teh Tarik ? Since the shoplot already paid the overhead and expenditure
that the supply and goods and services to the respective authority government
by OldTown. But Can I question that why those consumer that are ordered that
cup of Coffee is require to pay furtherance business in the ordinary course of
taxable person In Malaysia ?
Are
you referring this transaction is like a batch processing budget control costs
in calculate the material, labour and overhead by taken into accounts of individual
incremental value of the variable costs ? Answer is no, Why ?
It
just because the cup of Coffee, Milo and Teh Tarik is a completion product that
are made furtherance in the Coffee shop.
I
would like to challenge the futhereance of the cost of overhead is it just
referring the labour charges in making the mix and match powder and pour the
hot waters into the Coffee, Milo and Teh Tarik ? Answer is the labour also already incorporated into
the Owners of the Coffees Shops.
Therefore,
is the consumers paying additional incremental overhead to the government ? Or
it just to support the indirect income from the government for the addition 6%
from every shop lot businessman to earn such addition deferred tax assets
element to be collected on behalf by the
government and the shoplot owners
I
would like to say that the government does not have self-emphaty and altruisme
in incorporating such tax liabilities in lifting up as a corporate governance
Government Malaysia’s image. It does not have self-pity to those lower income
or just start-up capital businessman and also the senior citizen and nations of
Malaysia. This is because the Government Malaysia is acted like a big fish eat
the small fishes that are just giving born or those is still in struggling in
survival in the deep sea. Although we are showing sympathetic to those
omnipotence parties which considered easier to be bullied, hijacked and
sympathetic just to access the god’s throne for his own interest high priest –
from Malaysia Governement’s throne position. But as the Islamist Country, the
way he made me to become throne of grace is a glory and price to him and no
need fear for any enemy to him.
As
the current model of GST model, it seem like a bit unfair and reasonable by
just imposing to every business modes to be imposed 6% of the GST tax rates.
This is because government Malaysia is not aware and awake to those struggling
Small Medium Business (SMI), partnership, sole proprietor, branches, joint
ventures and etc method of financing business entities is still struggling in
walking into grace of the lord’s of Kingdom to have a leisure and relaxation
human organism structures to implement and launching the real corporate of
greenery governance codes in loving and care to the society.
The
more leisure time the nation of citizen they possesed, the more relaxation of
business structure in constructing the leisure in representing our soul and
heart in walking the greenery foot print of kingdom of lord of golden triangles
in reducing the strife, competition and the stressful of time span
management in increasing the profitability of the organization. This
is because the leisure element is also comprised of subsidy is a form of
financial aid or support extended to an economic sector (or institution,
business, or individual) generally with the aim of promoting economic and
social policy. ... Consumer/consumption subsidies commonly reduce the price of
goods and services to the consumer.
Given
the fact that, not all government is providing financial assistance in the form
of subsidy to all the companies and organization. But It allocated such fund to
prescribed criteria which is strategic, multimedia corridor, Labuan, research
and development which has the potential investment growing maturity which is not
included the SMI. It was quite poor that the SMI is not included in this
economic spectrum. I would like to voice out that this kind of financial
assistance would be quite unfair and reasonable is just because the size and
nature of the entity would be fairly burdened range up to the different size of
the organization with different scale rates of tax reporting purpose.
The
two differences of social comparison of the scale rate for more than RM500,000
paid up share capital would constitute 20% tax rate as per contrary to the less
than RM500,000 is to be reported as 28% tax rate. This two kinds of social
categories is constituted social comparison with different social categories.
If the income reporting is more than RM500,000 paid up share capital, it reported
the company is more rich, wealth and prosperity, where it considered as “big
firm” and enjoyed economic benefit from the economic consumption power .
However, the way social classification like that is to be considered as a sense
of humiliation. To those lower or less than RM500,000 is considered as
inferiority or low-self esteem, where the tax rate that need to paid out as 20%
of tax rates.
Although
this kind of two different scale rates is representing just and reasonable in
representing the economic consumption powers to reflect consumers earning
power. But bear in mind, in looking the inside orientation is looked like a
deferred taxation which the registered scale rate working capital is not the
same as big and small firm, rich and poor firm and etc meaning in
interpretation the deferred taxation to be meant to. I would like to take an introspective
exploration the differences of 8% is to be representing is the “subsidy of the
government Malaysia in compensating those small firm or underpaid subsidy
deferred tax liability”. It means that, the government actually already
incorporated subsidy to the big firm and small firm, without counting any kinds
or nature of the size of the entities.
But
the subsidy of the government is comprised of silence mode in the economic
views spectrum. I would like to protest this kind of social comparison is quite
suspicious and not objectivity. It just because the registered working capital
from one natures and size of the entities is unable to be comparable with apple to apple
comparison purpose, instead it just the mathematic calculation and without any
supporting calculus expert evidence and appraisal from the expertist.
Last
but not the least, I would like completely disagree the current GST model that
are launching that are based on april 2016. This is because only the monopoly
economic spectrum that are required in imposing the GST tax rate for a
prescribed standards. It was based on world income scope of the selected
special industries only. This is because the government Malaysia already provide
a certain provision of subsidy which is expressed in financial assistance to
the selected industries such as Airline, LRT, Schools, Hospitalization,
Government Agency and Bankers. Where the lump sum of the provision of subsidy
is considered as government grant which is to be debited to the deferred loan assets in the financial assets
and credited to the deferred loan to the financial liabilities.
Every
income received and liabilities would be treated as deferred income to be
generated in the firms. Therefore, although is the subsidy to the government
like a form of financial assets to be converted into the monopoly organization.
It would treated as liabilities to the firm and entities. This is because, this is still the loan to
the government and reflect substance owner form is a form of financial
liabilities.
Why
Financial liabilities require to impose GST tax rate but not those privasation
of the business and entities ?
This
is because the loan is still considered as reliance of dependency from the government agency
proforma obligation that required to
discharge the duty of care from the respective function and progress of the
different stages of investment in different nature and size of the entities.
This is because the government is incurring the debts in advance for collection
purpose, so government has the entitlement and righteous to collect the
government grant or subsidies on behalf to the government such as Highway
construction PLUS and etc multinational project.
This
is to promote not every company to be acted like big fish eat small fishes, but
not the rich company bully the small company. But we had to focus the emphasis
the satisfaction of the stakeholders in generating and pooling income using the
humanistic of way by not bullied instead won the heart of every stakeholders
company’s confidence and reliance and morale support in promoting the healthy
and greenery business of government corporate governance. It also another form intrinsic motivation to
the Malaysia government to love and care to the well-being of the society.
Therefore,
MNC need to impose GST tax rate !
But
not the SMI companies !
Prepared
By
Serene
Khoo Fei Chin
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