Malaysian Leading Bank Launches Online Income Tax Payment Facility

by Mary Swire, Tax-News.com, Hong Kong

02 July 2001

The Bumiputra-Commerce Bank (BCB) has launched Malaysia's first income tax e-payment service via its business banking portal, BizChannel. Deputy Finance Minister Datuk Chan Kong Choy officiated at the launch on Thursday last week. In his speech Datuk Chan said that the initiative would help encourage companies to embrace new internet technology in conducting their business.

The Bank's new service is a joint initiative between BCB and the Inland Revenue Board (IRB). BCB's managing director and ceo, Dr Rozali Mohamed Ali, said the product is for businesses that are also employers providing them with the ability to implement their obligation to make payments for their employees under the monthly tax deduction scheme in a manner that is easy, direct, and safe.

He added that both the IRB and BCB share a common purpose in launching this initiative: they are fully appreciative of the need to provide customers with more convenient, better and high-quality services, and the e-payment service fulfils this objective.

The new service allows companies to decide when they wish to make the payment and executes the transfer instantaneously, avoiding delays and uncertainties, thus enabling them to manage their funds better. Companies' tax personnel can complete their transactions right in the comfort of their office, beyond banking hours in a quick, hassle-free, efficient and cost-effective manner.

However, Dr Rozali disclosed that in a larger context, there is a broader motive. He explained that as embodied in the Eighth Malaysia Plan, Malaysia is faced with an important challenge of transformation from a production-based to a knowledge-based economy. In order for Malaysian-based businesses to be active and confident players in the economy, and for them to become more competitive and agile, they will require efficient and secure business infrastructure. A key element of that business infrastructure is the Internet.

Dr Rozali stressed that the Bank had taken great care to ensure that all transactions are secure by investing in state-of-the-art digital certification and encryption technology with a leading provider of Public Key Infrastructure (PKI) systems. The PKI involves unique security features using a smart card or a Universal Serial Bus (UBS) security device (commonly called a token) which can be conveniently carried around.

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