KUALA LUMPUR (Nov 11): Taxpayers who fail to settle outstanding taxes within six months and do not respond to notices from the Inland Revenue Board (IRB) may be barred from leaving the country, Deputy Finance Minister Liew Chin Tong said.

The tax authority may impose travel restrictions on individuals who fail to settle outstanding income tax or real property gains tax, under Section 104 of the Income Tax Act 1967 and Section 22 of the Real Property Gains Tax Act 1976, he told the Dewan Rakyat during the oral question-and-answer session on Wednesday.

However, Liew said failure to pay CP500 instalments does not warrant travel restrictions, as a taxpayer's actual tax liability is only determined after the submission of their income tax return for the relevant year of assessment.

The final tax payable is calculated after deducting CP500 instalments already paid. 

Only any remaining balance that is not settled within the stipulated period will be classified as outstanding tax, he noted.

CP500 is the IRB's bi-monthly tax instalment scheme for individuals earning non-employment income, including rental income, royalties and business profits.

Liew said travel restrictions were intended to trace debtors and taxpayers who had failed to settle their outstanding obligations despite reminders.

To avoid disruptions to overseas travel, the IRB advises taxpayers to check their outstanding tax status and whether they are subject to travel restrictions before making travel arrangements.

Taxpayers can check their tax arrears through the MyTax portal, while travel restriction status imposed by other agencies can be checked through the Immigration Department's website, he said.

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