Life Certainties

They say two things in life are certain: death and taxes. I’m not sure if I am prepared for the first one but with a definite deadline on April 30th, I had to spend almost whole of last weekend going through my purchase receipts and financial papers before submitting my tax return form (Borang BE) on-line. It’s good that it’s now possible to fill our tax return form via the Internet, have our taxes calculated using on-line applications and even get confirmation receipt from the Inland Revenue Board (LHDN). This year LHDN expects more people to use the on-line applications and reduce congestion at its offices close to the deadline.

After 15 years of working life and slowly crawling up the salary ladder I finally find myself paying quite a substantial amount of tax. Like all sensible people, as much as legally possible, I tried to reduce my taxable income. I tried to claim reduction on every item in which I was entitled to. Yet after all the deductions, I still think that my tax amount was too much. With the kind of service I get, I feel I should pay much less.

To be quite honest, I will not have any qualms about paying taxes to the government if I know exactly where my money goes. If I know that my tax money is going to help the poor rakyat, I’m quite happy to contribute. But that is not the case for now. As long as there is no transparency in our government, we never know whether our money is being sucked into a black hole and enrich a few cronies. We see a lot of mega projects which don’t really benefit the people but put a lot of money into someone’s pocket. We see them build roads and highways but they collect tolls. They build five star airports and facilities but goods and service there are also 5-star. They distribute free goodies to kampong folks but only to people with certain political inclination. They use people’s money to pay for TV and radio but throw slanders on their political enemies. When will they ever learn that fairness and goodwill bring more support for them than hurling dirt on their enemies?

I’m not sure whether in the present circumstances taxpayers are getting their fair share. One way to make sure our hard-earned money go to the poor is by paying zakat. Zakat paid to a state religious authority is entitled to full rebate i.e. deduction from tax amount and not just from taxable income. We know zakat will be distributed to certain categories of Muslims who are entitled to part of our wealth and it does not include rich cronies. So it’s a way of fulfilling our religious obligation and at the same time also a really good way of preventing our money from going into the pocket of the rich. And with zakat you can pay it to any state government of your choice, not to the federal government, if that’s your wish. My zakat always go to the state which I think is poor and least corrupt. I would advise my friends to do the same. It does not matter which state you pay your zakat to, but make sure it will not go into enriching rent-seeking cronies.

There are ways not to pay tax. You can either migrate to a tax-free country like the Middle East or Brunei, or earn below the threshold, or put your money in a bag and carry it with you to Australia. Don’t worry too much about being caught. Even if you were, in Malaysia, you could still become a cabinet minister! Looks like for many of us there is not much choice not to pay income tax. So, despite all this anger, I still have my salary deducted every month by the LHDN and come April still have to file my tax return. It’s one of two certainties in life. No escape. Period.