PETALING JAYA: The Inland Revenue Board (LHDN) says its audit process or investigation on individuals, including politicians, is conducted solely to ensure compliance with tax laws.

As the country’s main revenue collector, it said it remained committed to carrying out its responsibilities “without fear or favour”.

“LHDN is always fair, just and acts with integrity to all taxpayers and acts in accordance with the provisions of the country’s tax laws in an orderly and professional manner.

“In this regard, we wish to stress that each and every enforcement activity, including collection activities and civil litigation, is conducted in accordance with tax laws that are in place, as guided by the Tax Audit Framework and the Tax Investigation Framework which can be accessed through our official website, ” it said in a statement.

LHDN said its case selection system for enforcement action was based on the criteria of failure to comply with tax legislation, and did not store information on race, religion or the political affiliation of any individual in its database, adding that such information did not help in risk assessment of a case.

“The information of individuals or companies subject to audit and investigations is also not disclosed by LHDN as it is confidential.

“If the public, companies or organisations are not satisfied with the assessments raised, or feel there is an error in the tax imposed, an appeal can be made to the Special Commissioner for Income Tax (PKCP) by submitting Form Q which can be downloaded and printed from the official website.

“The completed Form Q and reasons must be submitted to the LHDN branch that handles that particular income tax file, ” it added.

LHDN said before Form Q was presented to PKCP, taxpayers could discuss with it through the dispute resolution proceedings platform to reach an out-of-court settlement.

If such a settlement could not be reached, it said Form Q would be presented and decided by PKCP.

“Taxes are the main revenue of the country and all parties must fulfil their responsibilities, ” it said.

https://www.thestar.com.my/news/nation/2021/03/09/lhdn-audits-done-to-ensure-compliance-with-tax-laws