The Inland Revenue Board Malaysia (IRB) confirmed today it had issued a letter to several international schools requesting relevant financial information on the parents of students studying in those institutions.
In a press statement, the IRB said the requests of the personal data of parents from several international schools was a lawful “routine procedure” to reduce the risk of tax leakages while ensuring the tax system is safeguarded.
“The request for information exercise is a routine procedure exercised by the IRB which aims at promoting voluntary tax compliance, reducing the risk of tax leakages and ensuring the tax system is safeguarded.
“The request for such information is pursuant to the provision of Section 80 and Section 81 of the Income Tax Act 1967,” it said in the statement.
Section 80 and 81 of the Income Tax Act 1967, grants the IRB access to any building in the country and the power to ask for any document and information, which must be provided.
On Wednesday, two email screenshots involving famed British international school Alice Smith and Gardens International School informing parents of IRB’s request went viral.
The two email notices stated that the IRB is seeking the release of personal information on the parents, including their identity card or passport numbers, name of student, payment details and total fees paid last year.
Yesterday, the Malay Mail reported that a couple of parents whose children are studying at the popular Alice Smith International School were upset that their financial information to IRB was released without prior consultation.
An anonymous ‘Datuk’ whose child attends the school had accused the school of breaching “privileged information” he had entrusted the school with.
The Datuk also believed a court order was necessary before the school can release any information to a third party and is not putting off taking legal action against the school if his lawyers advised him it was feasible to do so.
Another Alice Smith parent hailing from the United Kingdom complained that the data given to the IRB was without context.
The expatriate father who also spoke on condition of anonymity echoed the ‘Datuk’ in saying the school should have consulted their lawyer and informed the parents before furnishing IRB with the requested information instead of doing things the other way around. – MMO