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It Is Datuk Dr Ng Yen Yen Who Must Exercise Her Responsibility And Powers By Directing The Internal Revenue Board To Withold Legal Action Until The Finance Ministry Resolves The Chinese Cemeteries Must Pay Tax Controversy

Press Statement
by Lim Guan Eng

(Petaling Jaya, Wednesday): DAP is surprised that Deputy Finance Minister Datuk Dr Ng Yen Yen is asking Chinese cemeteries sued by the Internal Revenue Board(IRB) for not paying taxes to ask for a postponement of their cases in court to be heard next week. As the IRB is filing the suit and IEB is under the Finance Ministry, the Chinese community is mystified why Datuk Dr Ng can not direct IRB to withhold the legal suit until the Finance Ministry makes a final decision.  

Datuk Dr Ng and IRB must realize that the controversy that Chinese cemeteries can be profit-oriented and must pay tax was started by court action taken by IRB. Since Merdeka this has not been an issue, only after the big 90% victory by BN this became an issue. Clearly IRB and Datuk Dr Ng has a responsibility to undo the damage and resolve the problem they themselves created.  

In fact to prove their sincerity, Datuk Dr Ng should direct that all such legal action demanding RM 380,000 from Perak Han Chiang Association and RM 439,000 from  Kampar Ancient Temple Association be withdrawn. Where is the sincerity to discuss how to resolve the problem if Datuk Dr Ng and IRB continues with such legal action. 

DAP stresses that the furore over the taxing of Chinese cemeteries should not have arisen in the first place. There must be a Malaysian solution by declaring all cemeteries run by a management that are non-profit in nature should not be imposed taxes. In handling this controversy Datuk Dr Ng should be based on three principles:-

  • Are Muslim cemeteries imposed such taxes? If they are not, then why are Chinese cemeteries required to pay taxes.

  • If Muslim cemeteries are imposed such taxes, then there should be an amendment to the law that exempts all cemeteries that are non-profit-based from being taxed; and

  • Chinese Cemeteries that are run commercially should be taxed but those that are not and run by Chinese associations should be declared non-profit organisations.

Datuk Dr Ng appears confused by saying that some activities of Chinese cemeteries should be taxed even though they are non-profit in nature when the basic principle should be that non-profit organizations should not pay tax.

 

MCA should demonstrate that it is “the master/mistress of the house” by endorsing these three basic principles. The Chinese community will never accept that the Chinese cemeteries that have never been taxed in the past will be required to pay tax. Since history, the only way to avoid tax is death. The idea of being forced to pay taxes on Chinese cemeteries run by ancestral Chinese organizations is not only unjust and unfair but also disrespectful to the dead.  

(20/10/2004)

* Lim Guan Eng, DAP Secretary-General