KTP & Company PLT

In the tax world, that translates to this: not everyone who talks about tax is qualified to give tax advice.

But somehow, I keep hearing it: โ€œ๐— ๐˜† ๐—ฎ๐˜‚๐—ฑ๐—ถ๐˜๐—ผ๐—ฟ ๐˜๐—ผ๐—น๐—ฑ ๐—บ๐—ฒโ€ฆโ€

Just yesterday, a friend of mine shared that her auditor advised her on a tax deduction for commission.

The “auditor” suggested my friend issue a payment voucher to Mr. X and then pay herself.

My reaction? Eyes wide, head shaking. This is still happening?

If this had come from anyone else, Iโ€™d probably nod, smile politely, and think, โ€œWell, not my problem.โ€

But since it was a close friend, I couldnโ€™t hold back.

โ€œTell your auditor to go to hell! (ๅซไป–ๅŽปๆญป)โ€ I said, only half-joking.

I asked her straight: ๐—ช๐—ต๐—ผ ๐—ถ๐˜€ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฎ๐˜‚๐—ฑ๐—ถ๐˜๐—ผ๐—ฟ, ๐—ฎ๐—ป๐˜†๐˜„๐—ฎ๐˜†? ๐—”๐—ป ๐—ถ๐—ป๐˜๐—ฒ๐—ฟ๐—ป? ๐—๐˜‚๐—ป๐—ถ๐—ผ๐—ฟ? ๐—ฆ๐—ฒ๐—ป๐—ถ๐—ผ๐—ฟ? ๐— ๐—ฎ๐—ป๐—ฎ๐—ด๐—ฒ๐—ฟ? ๐—ข๐—ฟ ๐—ฎ ๐—ฝ๐—ฎ๐—ฟ๐˜๐—ป๐—ฒ๐—ฟ?

Because let me tell you my past experience, titles donโ€™t guarantee tax wisdom.

But hereโ€™s the real kicker: ๐—ช๐—ต๐˜† ๐—ถ๐˜€ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฎ๐˜‚๐—ฑ๐—ถ๐˜๐—ผ๐—ฟ โ€“ ๐—ป๐—ผ๐˜ ๐—ฎ ๐˜๐—ฎ๐˜… ๐—ฎ๐—ด๐—ฒ๐—ป๐˜ โ€“ ๐—ฒ๐˜ƒ๐—ฒ๐—ป ๐—ด๐—ถ๐˜ƒ๐—ถ๐—ป๐—ด ๐˜†๐—ผ๐˜‚ ๐˜๐—ต๐—ถ๐˜€ ๐—ฎ๐—ฑ๐˜ƒ๐—ถ๐—ฐ๐—ฒ?

Thereโ€™s a crucial difference here, one that too many businesses overlook.

Just because someone is an auditor doesnโ€™t mean theyโ€™re automatically qualified to advise on tax issues.

They may know the books inside out, but tax compliance? Thatโ€™s a specialized field, and itโ€™s why tax agents exist.

I also share with my friend that your “auditor” ๐—ฎ ๐—น๐—ถ๐—ฐ๐—ฒ๐—ป๐˜€๐—ฒ๐—ฑ ๐˜๐—ฎ๐˜… ๐—ฎ๐—ด๐—ฒ๐—ป๐˜ ๐—ถ๐—ป ๐— ๐—ฎ๐—น๐—ฎ๐˜†๐˜€๐—ถ๐—ฎ? ๐—›๐—ฎ๐˜ƒ๐—ฒ ๐˜€๐—ต๐—ฒ ๐˜ƒ๐—ฒ๐—ฟ๐—ถ๐—ณ๐—ถ๐—ฒ๐—ฑ ๐˜๐—ต๐—ฒ๐—ถ๐—ฟ ๐˜€๐˜๐—ฎ๐˜๐˜‚๐˜€ ๐—ผ๐—ป ๐˜๐—ต๐—ฒ ๐—œ๐—ฅ๐—•โ€™๐˜€ ๐— ๐˜†๐—–๐˜‚๐—ธ๐—ฎ๐—ถ ๐˜€๐˜†๐˜€๐˜๐—ฒ๐—บ?

I warn my friend ๐—œ๐—ฅ๐—• ๐—ผ๐—ณ๐—ณ๐—ถ๐—ฐ๐—ฒ๐—ฟ๐˜€ ๐—ฑ๐—ผ๐—ปโ€™๐˜ ๐˜€๐—ถ๐˜ ๐—ถ๐—ป ๐˜๐—ฟ๐—ฒ๐—ฒ๐˜€ or guess numbers in a haze of paperwork in todayโ€™s digital world. Everything is digitalized, and they know exactly where every ringgit goes.

Let me share a quick past story: once, during an audit, an IRB officer pulled out a photocopy of a cheque as evidence.

They had a record of the payment down to the last detail. If you think that issuing a quick voucher or taking shortcuts will get past them, youโ€™re in for trouble.

A legitimate tax deduction on commissions isnโ€™t about just โ€œissuing a voucher.โ€

Itโ€™s about proper documentation, compliance with tax regulations, and making sure the transaction holds up under scrutiny.

Fumbling around with vague advice could end up costing you in penalties or even a full-blown tax audit.

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I’m Koh Teck Peng

Welcome to my blog, Iโ€™m the founder and principal of KTP & Company PLT. My journey in the accounting profession has been driven by a passion for numbers and a dedication to helping businesses succeed. With over 25 years of experience, Iโ€™ve had the privilege of working with a wide range of clients, from small startups to large corporations, providing them with the financial insight and strategic guidance they need to thrive.

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