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Q: I have bought a company car in Year 2018, but I did not report benefit-in-kind (BIK) in my income tax return for Years of Assessment (YAs) 2018 and 2019, can I declare the BIK amount in Year of Assessment 2020? What are the consequences of not reporting the BIK in YAs 2018 & 2019?
A: The BIK should be declared for YAs 2018 and 2019 instead of YA 2020. If no BIK is declared, the Inland Revenue Board may disallow certain portion of the motorcar expenses at the company’s level for the personal usage portion.
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YYC Tax Guru