KUALA LUMPUR: About 525,000 taxpayers were audited and investigated for various compliance issues as of June 30, 2024, resulting in penalties and additional taxes totaling RM3.7 billion.
The Inland Revenue Board (LHDN) chief executive officer Datuk Abu Tariq Jamaluddin urged taxpayers to meet with LHDN officials for guidance if they have concerns regarding the penalties or additonal taxes levied.
He said this is important to avoid penalties due to audits or investigations.
"With Tax Administration 3.0 guiding our strategies and e-Invoicing enhancing our capabilities, we will continue to focus on enforcement activities through audits and investigations to ensure no shortfall in government revenue.Our priority remains on high-net-worth individuals, shadow economy, aggressive tax planning, online activities, cross-border transactions, and offshore financial assets," he said at the 2024 National Tax Conference, recently.
The two-day conference themed "Tax Renewal: Driving Growth and Empowering the Nation" was jointly organised by LHDN and the Chartered Tax Institute of Malaysia (CTIM) at the Kuala Lumpur Convention Centre.
It was officiated by Prime Minister Datuk Seri Anwar Ibrahim.
Meanwhile, Abu Tariq said Malaysia is now in the era of Tax Administration 3.0 where tax administration systems are driven by technology towards efficiency, transparency, and taxpayer convenience.
He said this evolution is not just because of technological advancement, but a fundamental shift in how the country approaches tax collection and compliance.
He said Tax Administration 3.0 is characterised by seamless integration of new technologies such as artificial intelligence, big data analytics, and blockchain.
"This innovation is designed to enhance LHDN's capabilities to collect taxes more effectively and accurately while reducing administrative burdens on taxpayers by helping detect anomalies, identifying patterns, and predicting potential risks.By leveraging data-driven insights and predictive analytics, it enhances our ability to detect and prevent tax evasion."
"We aim to establish a fair tax system for all, protect national revenue, enhance Malaysia's economic resilience, and pave the way for sustainable growth," he added.