Don’t submit your income tax through E-Filing last minute

If you happens to be online, it is highly recommended you complete the LHDN income tax E-Filing now than on the 30 April 2007 deadline. If you do it last minutes, you should just fill up the paper document and drive to Inland Revenue Department to submit it.

In the States, one of the biggest online Tax filing system, Turbo Tax by Intuit, are brought to its knees due to last minutes submission. If you have done the income tax form filing before, you will notice it take times to bring you from one page to page. The form itself is not complicated, but it is the secure channel layer (SSL) that encrypt the traffics that slow thing down.

If you rarely go to side with secure connection that employ the HTTPS header, let me tell describe it in simple word. The secure layer HTTPS is a way to ensure the connection between your computer to the server(in this case, the LHDN – Lembaga Hasil Dalam Negara) are secure. When the connection establish, the LHDN e-filing server will do a strong mathematic process to scramble the information before sending to your browser. When it reach your PC browser, the browser will “unpack” it with some digital code that you get from LHDN server earlier. In short, such connection will take lots of computer processing power.

For Web development analyst, it is known that HTTPS connection will take lots of system resources. If a site is build to serve 10,000 normal web user in a second, it have trouble to serve 100 user on time if HTTPS is used. And to tackle this problem, the service provider must install additional hardware or “SSL accelerator”. And all this doesn’t come free. (The good news is, the cost of such application is only 1/10 of the cost compare to 5 years ago) So it is not a surprise that an Tax agents such as Intuit did not deploy equipment to cater for last minutes tax submission(it can be 1000 times more submission compare to normal day), the cost does not justify it.

Let me tell you why it is a bad idea try to submit the income tax E-Filing last minutes.

  1. The E-filing require a PIN number, come with the BE or B form. If you CANNOT do E-filing without it. So you better find out the PIN number NOW.
  2. The E-filing PIN number is not 100% failure prove. My colleague PIN number fail. And LHDN are not working 24 hours to attend the issue. He get the new number the next day. Imagine you found out the number not working during last minutes.
  3. The E-filing registration process is straight forward, but it
  4. E-filing require ActiveX to run on your PC. So better find it out NOW than later. Due to security reason, some company has policies to lock down the PC/notebook computer from executing ActiveX component.
  5. E-Filing require to enter 2 different password in a row. User not familiar with it might find out they can’t get into the E-filing system. And it is better to get the problem fix than late.r
  6. LHDN might not be able to attend all the user support call
  7. There is chance for LHDN E-filing server melt down on the 30 April 2007, due to massive HTTPS connection

E-filing will do all the calculation and formatting for you. It really save all the hassles and time to do the calculation. Why use the manual filing when there is a system ready for you. And don’t forget, you HAVE PAY YOU TAX MONEY for the system.

p/s: Yes, I am not happy with the tax rates, but that will be another blog topic.

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