Wee Proposes Making Irb Independent Body Under Parliament


 


PARLIAMENT | Ayer Hitam MP Wee Ka Siong has proposed that the Inland Revenue Board (IRB) be restructured into an independent statutory body under Parliament’s oversight, citing concerns over its powers and potential political interference.
Speaking in the Dewan Rakyat, the MCA president said the IRB’s wide-ranging powers warrant a comprehensive structural reform.
“IRB should not be seen as a political tool or operate under the direct control of the finance minister, as is the case now,” said Wee.
He stressed the need for a clear separation between tax enforcement and the executive branch to ensure neutrality and public confidence.
ADS“I propose that IRB be placed under Parliament’s supervision, free from political interests and fiscal pressure from the government. This should be part of key parliamentary reforms,” he added.
Ayer Hitam MP and MCA president Wee Ka SiongWee cited international examples where tax authorities operate independently of the executive.
In the United States, the Internal Revenue Service (IRS) is directly overseen by Congress, while in the UK, His Majesty’s Revenue & Customs (HMRC) operates under its own board without daily ministerial control.
A similar structure is in place for the Australian Taxation Office (ATO), which is accountable to Parliament.
Other concerns
Wee also raised concerns about IRB's tax claim against Tenaga Nasional Berhad (TNB), which he said stemmed from a dispute over whether the company should be taxed under Section 7A or 7B of the Income Tax Act.
He pointed out that 63 percent of TNB is owned by public-linked entities such as Khazanah Nasional, EPF, Permodalan Nasional Berhad, Retirement Fund Inc, and other government agencies, implying that ordinary Malaysians would ultimately bear the financial burden.
"If TNB’s application is ultimately denied, this is not just a tax grab- it will be daylight robbery of the people’s retirement funds, disguised in bureaucratic jargon," he stressed.
Wee's "daylight robbery" remark sparked a fiery exchange with Chong Zhemin (Harapan-Kampar), who invoked Standing Order 36(12) for allegedly misleading the august house.
Kampar MP Chong Zhemin"This matter has gone through the courts. The courts ruled based on existing laws - laws that were in place while the honourable member for Ayer Hitam was a minister.
"His statement about 'daylight robbery' is not just inaccurate, it misleads the House," said Chong.
On July 4, it was reported that TNB is facing tax arrears of RM5.05 billion after the Federal Court ruled it is ineligible to claim the reinvestment allowance (RIA), which is meant for manufacturers.
ADSThe dispute between TNB and IRB reportedly dates back to 2015. Between 2013 and 2021, the IRB issued RM9.25 billion in additional tax assessments to TNB.
After RM2.44 billion in penalties were waived through settlements, TNB’s net potential liability was reduced to RM6.81 billion.
The utility company paid another RM1.76 billion in December 2020, leaving an estimated RM5.05 billion outstanding. - Mkini


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