KUALA LUMPUR: The Inland Revenue Board (IRB) should be made answerable to Parliament rather than remain under the Ministry of Finance, Datuk Seri Dr Wee Ka Siong proposed on Tuesday.
Wee, the Ayer Hitam MP, said the tax collection agency should operate as an independent statutory body, with a clear separation from the executive, to safeguard it from political interference and fiscal pressures. He made the call in the Dewan Rakyat during the debate on the 13th Malaysia Plan, describing the move as “an important parliamentary reform”.
Citing international examples, Wee noted that in the US, the Internal Revenue Service reports directly to Congress, while in the UK, His Majesty’s Revenue and Customs functions as a non-ministerial department, reporting to Parliament via the Treasury minister.
His proposal comes in the wake of a high-profile dispute between Tenaga Nasional Bhd (KL:TENAGA) and the IRB over billions of ringgit in additional tax assessments, a case that was decided in favour of the IRB by the country’s highest court. Following the ruling, Tenaga announced it would seek deductions through another allowance, the approval of which rests with the finance minister.
Wee, who is also MCA president, expressed concern about a possible conflict of interest involving Finance Minister II Datuk Seri Amir Hamzah Azizan, who was Tenaga’s CEO from 2019 to 2021. Amir had previously sought tax relief on behalf of the utility and now, as finance minister, is in a position to review that same decision.
“Is this a fair and transparent system?” Wee questioned, stressing the need for structural reforms at the IRB, whose powers he described as “too broad”.
