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Saturday, June 29, 2024

The e-invoice conundrum dilemma

 


Mandatory e-invoice countdown



CYBERJAYA: In just one week, the one-year countdown begins in earnest for all businesses in the country to switch to the mandatory electronic invoicing (e-invoicing) rule.

Ahead of its full rollout on July 1, 2025, the Inland Revenue Board (LHDN) will be officially launching a free software on June 1 to help businesses, both big and small, ease into the system.

LHDN chief executive officer Datuk Abu Tariq Jamaluddin (pic) said businesses could actually already use e-invoicing when the software was made available for free on May 15.

“The free programme will be officially launched on June 1. More than 60 pilot companies and service providers have committed to issuing e-invoices in a production environment by June 30 this year through the MyInvois integration,” Abu Tariq told The Star in a recent interview.

He added that on Aug 1, the first phase of the project will begin with about 5,000 companies, which record annual earnings of RM100mil and above, adopting the use of e-invoices.

The second phase will begin on Jan 1 next year for companies with annual earnings of between RM25mil and RM100mil.

ALSO READ: Give us time to adjust, urge small business

“The final phase is for all businesses or enterprises offering sales or services to come on board with e-invoicing by July 1 next year,” he added.

The gradual move by LHDN, Abu Tariq said, would help in the seamless transition to e-invoicing, while benefiting taxpayers and the board.

“It will also help stem billions in losses due to the shadow economy and is in line with the nation’s digitisation goals by 2030,” he added.

It was previously reported that the nation lost about RM70bil in tax revenue last year due to illegal activities and tax evasion.

Although a recent survey by LHDN showed about 98% of businesses accepting e-invoicing, Abu Tariq acknowledged that there was pushback from certain quarters, particularly small and medium enterprises (SMEs) and hawkers.

Among their concerns was the fine of between RM200 to RM20,000 for each breach of the e-invoicing regulations, he added.

He explained that companies earning less than RM100mil annually need not use e-invoicing this Aug 1 because they do not fall within the category.

“In general, at the initial stage of implementation, there is no need for taxpayers to get an e-invoice as proof of expenditure,” LHDN had said in response to a recent viral post by Datuk Seri Dr Wee Ka Siong.

The MCA president had questioned the manner in which e-invoicing was being “forced upon businesses, particularly petty traders and hawkers”.

Dr Wee, who is the Ayer Hitam MP, also questioned why businesses had to submit 55 data entry points under the system and whether their data was safe from hackers.

LHDN has since clarified that only six out of the 55 data entry points need to be filled up to complete the e-invoice for automatic appraisals.

Abu Tariq explained that e-invoicing can be filed once a month as a “consolidated invoice.”

The consolidated invoice, he said, represents monthly overall sales and services transactions instead of daily individual entries for each sale.

“This will make compliance easier for micro-businesses because they only need to submit their consolidated invoice once a month.”

However, he noted that consumers or buyers have the legal right to demand e-invoicing receipts once the system is fully implemented on July 1 next year.

“Action can be taken against the seller for failing to do so,” he said.

To allay worries, he said LHDN will deal with non-compliance on a case-by-case basis.

Other criticisms cited as impeding the use of the online filing system were the expected rise in operating cost, lack of mobile phone subsidy or aid, and poor signal coverage in rural areas.

Abu Tariq said LHDN is currently in talks with online platform providers providing cashless payment facilities on how best to capture sales transactions through their scanning or QR code systems.

With one year to go before e-invoicing is fully enforced, he said there is ample time for adjustments and improvements.

He also encouraged SMEs, petty traders and hawkers to start using the free e-invoicing software to familiarise themselves with the system and get their books in order by July 1 next year.

A look into the challenges of the new digital system which will be made mandatory in stages from Aug 1.

BY now, most of the business world is aware of the looming deadlines for the implementation of e-invoicing.

The thorny subject tends to elicit groans from company owners and their accountants and administrators.

But as the government is postulating, it is a necessary evil in order to ensure taxes are fully paid.

But then again, is it the only option? Is e-invoicing the best solution to having a more effective tax system?

It does seem that it is going to be a painful, expensive and time-consuming exercise, and hence, does the means justify the end?

In July 2023, the Inland Revenue Board (IRB) issued the first guideline under section 134A of the Income Tax Act 1967 for the implementation of e-invoicing.

Companies with revenues of Rm100mil or more will have to carry out e-invoicing from Aug 1. Those with a turnover of more than Rm25mil will be next, with their deadline being Jan 1, 2025. All companies are to be filing their e-invoices by next July.

Thannees Tax Consulting Services managing director S M Thanneermalai says even though there is about a month left before the first group needs to do the necessary, many of them are unprepared.

“Many companies are waiting to see what will happen to the first batch. The impression that many have is that the e-invoicing deadlines will be postponed, similar to what happened with the low-value goods and high-value goods taxes,” he says.

There are parties who disagree with the idea of e-invoicing, especially in a country which has had a goods and services tax (GST) regime in the past. The GST was introduced in Malaysia in 2015 and abolished in 2018.

Tan Sri Soh Thian Lai of the Federation of Malaysian Manufacturers (FMM) says the GST is the panacea for Malaysia’s debt woes.

“The GST is a timely lifeline for the country’s debt dilemma and a means to shore up adequate fiscal buffers to weather the next economic downturn,” he adds, adding that the problem is that the government lacks the political will to reintroduce the GST.

“The government is focusing on short-term measures rather than doing the right thing for the benefit of the nation in the longer term.

“As the GST is a broad tax base system which would increase indirect taxes, it will also give the government flexibility to reduce direct taxes (personal income and corporate taxes) to make the country a more attractive business destination,” he says.

Soh notes that some companies have voiced their apprehension of e-invoicing, considering the sheer size, volume and complexity of transactions involved.

“These include export and import transactions that require companies to self-bill for overseas purchases. They are also concerned about the readiness of their systems for implementation and compliance with e-invoicing,” Soh says.

So, how complex is e-invoicing going to be? Companies have two ways of digitally filing their invoices to the tax office. One is through the IRB’S own Myinvois Portal. But this means that companies need to manually do it and the understanding is that only companies with a small number of invoices can take this route.

This is why the IRB will be providing all companies with application programming interfaces (APIS), which then will allow companies’ own systems to directly connect with the tax office, thereby automating the submission process.

This will require companies to upgrade their own systems or invest in a new system. “Companies must automate their existing enterprise resource planning (ERP) systems or use a software that can directly speak to the IRB’S Myinvois Portal. Initially, for the first year, it can be a burden to businesses cost-wise, similar to the implementation of the GST back then.

“Companies either have to customise their existing systems (if they are not up to date) or find a suitable middleware. It is going to be expensive,” says Thanneermalai.

He notes that businesses may also need to hire consultants, particularly if they require help to navigate the e-invoicing process and understand the required documentation.

“The IRB can provide assistance, but it is already inundated with many questions, making it challenging for it to address individual concerns comprehensively. Hence, the IRB may offer generic answers which may not hold up during audits, potentially leading to problems in the future,” he says.

However, others do not think that the cost is going to be prohibitive.

Ernst & Young Tax Consultants Sdn Bhd tax managing partner Farah Rosley says the cost for MSMES in gearing up for e-invoicing will not be burdensome, as they can access the Myinvois Portal which is free.

“Larger corporations will typically have the necessary manpower and IT departments to integrate e-invoicing into their existing systems,” she adds. Meanwhile, the government has also announced a tax deduction of up to RM50,000 per year (up to the 2027 year of assess

“The cost for MSMES in gearing up for e-invoicing will not be burdensome, as they can access the Myinvois Portal which is free.” 

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The e-invoicing dilemma


The e-invoicing dilemma | The Star13 hours ago



This is the 'freedom' the US advocates: People who tell the truth have to plead guilty; US consolidate ties with Australia, strengthen small cliques in Asia-Pacific: expert

WikiLeaks founder Julian Assange walks through the US Federal Courthouse in the Commonwealth of the Northern Mariana Islands in Saipan, Northern Mariana Islands, on June 26, 2024 Photo:VCGAfter a years-long legal battle surrounding the founder of WikiLeaks, Julian Assange, a dramatic turn has finally arrived. He has obtained long-awaited "freedom," though at the cost of pleading guilty to a felony charge related to his alleged role in orchestrating one of the largest-ever breaches of US classified military and diplomatic documents. On Thursday, he landed back home in Australia, as a free man for the first time in 12 years.

People who tell the truth have to confess in exchange for "freedom" - the fate of Assange demonstrates that the "free beacon" of the US has ultimately collapsed. 

Founded in 2006, WikiLeaks exposed US military war crimes four years after its inception. Assange, the founder of the website, quickly became embroiled in lawsuits, with the US charging him with 18 counts, including violations of the Espionage Act. Arrested and imprisoned in the UK, Assange spent 1,901 days in a three-meter long, two-meter-wide cell, isolated from the world for 23 hours a day. Simultaneously, the US requested his extradition. The 52-year-old man now appears much older than his real age.

The US was determined to extradite Assange, ostensibly because he released what the US claimed was classified information related to national security and foreign affairs through WikiLeaks. However, in reality, it is a show to demonstrate that anyone who dares to challenge US hegemony and embarrass the US will be punished, Shen Yi, a professor at Fudan University, told the Global Times. By holding Assange accountable, the US government also hopes to set a strong precedent, demonstrating a zero-tolerance attitude toward leaking information that threatens its hegemonic status and reputation, and deterring other potential whistleblowers and leakers.

The seemingly sudden release of Assange can be seen as the most "dignified" choice for the US. The "plea deal" not only demonstrates the US' emphasis on the so-called national security, but also reduces the uncertainty of further legal battles, seemingly giving the US a "sense of victory," said Lü Xiang, a research fellow at the Chinese Academy of Social Sciences.

The US has displayed its double standard once again. Protecting human rights and freedom is something that US adversaries, not the US itself, should do. Speech that serves US interests, regardless of whether it is factual or logical, can get a free pass. But what the US does not like, especially the truths that would embarrass the US, are considered "guilty" or even a "crime." The narratives of freedom of speech swing with changes in US interests. 

Although the US can force Assange to "plead guilty" through various means, the atrocities exposed by WikiLeaks cannot be erased. WikiLeaks exposed a large number of US diplomatic cables and military confidential documents during the Afghanistan and Iraq wars, revealing US war crimes. The video of the US military "Apache" helicopter shooting civilians in Iraq will continue to be remembered by people.

In order to cover up its crimes, laws can become tools of the US government. The chilling effect it hopes to achieve on "whistleblowers" not only brings personal harm to Assange but also deepens the world's profound doubts about the values that the US boasts. 

A years-long international saga involving Assange may be over, but this history of injustice will always be remembered. Its impact will continue to resonate in the public and media spheres, reminding people of the US' trampling of freedom and human rights.
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Settling Assange's case helps US consolidate ties with Australia, strengthen small cliques in Asia-Pacific: expert

A demonstrator holds a placard reading Freedom for Julian Assange during a protest outside of the Royal Courts of Justice, Britain's High Court, on February 21, 2024. Photo: AFP

A demonstrator holds a placard reading "Freedom for Julian Assange" during a protest outside of the Royal Courts of Justice, Britain's High Court, on February 21, 2024. Photo: AFP

The curtain has closed on Julian Assange's saga as the WikiLeaks founder pleaded guilty to violating US espionage laws and walked out of court as a free man on Wednesday. Yet his case has exposed the hypocrisy of the US' long-flaunted freedom of speech and the ugliness of the country's relentless efforts to crush those who have "got in the way."

The US' gains from settling this high-profile case are multi-dimensional. Not only did the US intimidate people trying to expose US' dirty laundries, but it also removed one obstacle in its relationship with Australia, where Assange is from and where there has been advocacy for his release, observers noted. Consolidating coordination with Australia can help the US counter China's influence in the Western Pacific region through the creation of alliances, said experts. 

Assange walked free on Wednesday from a court on the US Pacific island territory of Saipan after pleading guilty to violating US espionage law, in a deal that allowed him to head straight home to Australia, per Reuters.

His release ends a 14-year legal saga in which Assange spent more than five years in a British high-security jail and seven years in asylum at the Ecuadorean Embassy in London battling extradition to Sweden on sexual assault allegations and to the US, where he faced 18 criminal charges.

Those charges stemmed from WikiLeaks' release in 2010 of hundreds of thousands of classified US military documents on Washington's wars in Afghanistan and Iraq - one of the largest breaches of secret information in US history.

During a three-hour hearing in Saipan, Assange pleaded guilty to only one criminal count of conspiring to obtain and disclose classified national defense documents but said he had believed the US Constitution's First Amendment, which protects free speech, shielded his activities.

"He [Assange] has suffered tremendously in his fight for free speech, for freedom of the press, and to ensure that the American public and the world community gets truthful and important newsworthy information," Assange's US lawyer Barry J Pollack said outside court in Saipan, Australian media reported.

The decades-long saga basically tells the world US political power can crush any form of freedom and legal terms, Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, told the Global Times.

Assange has endured a great deal over the past 14 years, yet his power and resources are too limited to effectively combat the US political machine, said Lü. While Assange's guilty plea is unjust and unfortunate, his experiences, along with WikiLeaks, have further exposed the real US to the world.

The case of WikiLeaks founder Julian Assange shows the world 
what US-style "freedom of the press" really is, said Wang Wenbin, then spokesperson for the Chinese Ministry of Foreign Affairs, at a press briefing in May.

Wang said the case shows the US believes exposure of other countries' secrets should be rewarded, but exposure of its own should be punished. The remarks came after Assange won a victory in his ongoing battle against extradition from the UK to the US, after the High Court in London granted him permission to appeal.

Secret diplomatic maneuvers 

Behind closed doors, an Australia-US-UK diplomatic dance opened the way for a plea deal to free the WikiLeaks founder, analysts and a diplomat previously involved in the case told AFP.

The tide shifted strongly in Assange's favor after Australian Prime Minister Anthony Albanese was elected in May 2022 and made his release a priority, a diplomat who did not want to be named told the AFP. 

Assange and his family had been advised previously that he should plead guilty and strike a deal because it would be difficult for the US to drop the charges, said the diplomat.

In February this year, Albanese said he hoped for an amicable end to the prosecution of WikiLeaks founder Julian Assange after Australian lawmakers ramped up pressure on the US and UK by passing a motion calling for Assange to be allowed to return to his home country.

The release of Assange has helped to remove a major obstacle between Washington and Canberra, strengthening their coordination. Washington had the current Asia-Pacific situation in mind when deciding to settle the case, Li Haidong, a professor at the China Foreign Affairs University, told the Global Times. 

The US and Australia have strong cooperation in both political and security aspects. Strengthening cooperation with Australia can help US counter China's influence in the Western Pacific region through the creation of alliances, Li explained. 

"I think part of the reason this has happened today is because it was becoming a significant issue for the relationship," Emma Shortis, senior researcher in international and security affairs at The Australia Institute thinktank, told media, noting that notably since London, Washington and Canberra agreed on a nuclear-powered submarine pact, AUKUS.

Li said after 14 years, the US has come to the conclusion that continuing to pursue the Assange case is no longer worth the effort. Therefore, Assange's confession and return to Australia are seen as a means for the US to save face and for the relationship between the US and Australia to be repaired.

What is even more tragic than Assange's guilty plea is that his fate is not the outcome of his own actions, but rather the result of a compromise and coordination among various governments for geopolitical reasons, said Li.

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Friday, June 28, 2024

A prescription for trouble

 


CLICK TO ENLARGE

PETALING JAYA: Curbing the sale of unregistered medical items online is still a challenge, although the Medical Device Authority (MDA) has been clamping down on distributors of these unapproved products.

Condoms and contact lenses are among the top items sold without proper registration.

Within the first six months of the year, the MDA conducted two raids in the Klang Valley area. 

ALSO READ: Experts: Avoid buying unregistered medical items

“The MDA works to ensure compliance. But challenges like unauthorised online sales still remain. The MDA has successfully resolved 19 cases since 2020.

“This year, we conducted two raiding operations in the Klang Valley area,” a spokesperson for the Health Ministry agency said when contacted.

The MDA conducts an average of four raids a year in relation to the sale of unregistered medical devices or businesses operating without a valid MDA licence.

“A total of four cases have been brought to court so far. Besides that, MDA has suspended 28 establishment licences and revoked six establishment licences for a variety of violations under Act 737 (Medical Device Act 2012),” said MDA.

Products worth RM1.5mil were seized in these operations.

The top five items seized include examination gloves, contact lenses, blood lancets, medical face masks, and condoms.

These items, said the MDA, also included those sold on ecommerce or social media platforms.

“Based on our market surveillance activities, unregistered medical devices are also found in pharmacies and convenience stores. This is because there are irresponsible distributors who are distributing unregistered medical devices without licence to pharmacies as well as convenience stores,” said the MDA.

The MDA received a total of 19,833 applications for the registration of devices. Of these 9,650, there were new registrations. A total of 18,136 applications were approved, including 9,153 new ones.

“The requirement for the registration of medical devices is stated in the Third Schedule of the Medical Device Regulations 2012,” the spokesperson said.

An approval should be obtained from MDA before medical device advertisements are published or broadcast in any medium or platform.

“Furthermore, the MDA will always monitor advertisements across all platforms from time to time to curb the sales of unregistered medical devices and unapproved advertisements,” added the spokesperson.

As unregistered medical devices are available on the market, the MDA advises the public to verify the device’s registration status before purchasing.

This can be done by keying in the registration number on the authority’s website.

When contacted, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said the regulation of medical devices falls under the purview of MDA.

However, if a medical device is found to have fake certification, the ministry can take the necessary action under the Trademarks Act 2019.

“If the medical device (appears) to have the approval of the MDA but the MDA confirms that it doesn’t, then we can take action according to the Trade Descriptions Act 2011.

“The ministry has not received any complaints in relation to this issue to date.

“However, a joint operation can be conducted to curb this according to the jurisdiction of the respective agencies,” she said.

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Thursday, June 27, 2024

Seniors, lift weights for one year to preserve your leg strength

 

Taking up resistance training using heavy weights can help seniors maintain their leg strength, which is a strong predictor of death in the elderly. — AFP

Lifting heavy weights around the time of retirement could preserve leg strength into older age, research suggests.

People naturally lose muscle function as they get older, and experts see faltering leg strength as a strong predictor of death in elderly people.

Previous short-term studies have shown that resistance training, which can involve weights, body weight or resistance bands, can help prevent this from happening.

New research has explored the long-term effects of a one-year supervised resistance training programme using heavy weights.

For the study, 451 people of retirement age were randomly split to undergo one year of heavy resistance training, one year of moderate-intensity training, or one year of no extra exercise, on top of their usual activity.

People in the resistance training group lifted heavy weights three times a week, while those doing moderate-intensity training did circuits, including body weight exercises and resistance bands three times a week.

Each exercise in the resistance training group involved three sets of six to 12 repetitions at between 70% and 85% of the maximum weight the person could lift for one repetition.

Bone and muscle strength, and levels of body fat, were measured at the start of the research, and then again after one, two and four years.

At the four-year mark, the full results were available for 369 people.

They showed that those in the resistance training group had maintained their leg strength over time, while those doing no exercise or at moderate intensity had lost strength.

Writing in the journal BMJ Open Sport and Exercise Medicine, the researchers concluded: “In well-functioning older adults at retirement age, one year of heavy resistance training may induce long-lasting beneficial effects by preserving muscle function.”

The researchers found, however, that there was no difference among the three groups in leg extensor power, which is the ability to kick a pedal as hard and as fast as possible; handgrip strength (a measure of overall strength); and lean leg mass (weight minus body fat), with decreases in all of these.

When looking at visceral fat stored internally around organs, levels remained the same in the resistance training and moderate-intensity exercise groups, but increased in the no-exercise group.

The authors, including from the University of Copenhagen in Denmark, said people in the study were generally more active (clocking up an average of nearly 10,000 steps a day) than the population as a whole.

But they concluded: “This study provides evidence that resistance training with heavy loads at retirement age can have long-term effects over several years.

“The results, therefore, provide means for practitioners and policymakers to encourage older individuals to engage in heavy resistance training.”

People at the end of the study were aged 71 on average, and 61% were women. – PA Media/dpa

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