KUALA LUMPUR: The Inland Revenue Board (IRB) has recovered RM5.2 billion in additional assessment tax raised due to unreported, under-declared and evasion of reported income by individuals and companies in 2023.

IRB said IRB does not practise favouritism or discrimination in acting against tax evaders.

"IRB will take measures under the provision of the Income Tax Act 1967 to combat tax evasion, including enhanced enforcement, legislation and taxpayer education.

"We are also committed to tackling tax evasion and at the same time, strengthening the tax net by broadening the tax base to address any existing leakages or gaps to make sure that everyone pays an equal share to the government without discriminating either individuals or companies," it said.

It said other measures taken to address tax evasion include the implementation of Tax Identification Number (TIN) and e-invoice.

Then-Deputy Finance Minister 1 Datuk Seri Ahmad Maslan last year said the initiatives were aimed at addressing shadow economy activities, estimated to make up 30.2 per cent of the country's gross domestic product (GDP) from 2000 to 2009.

The size of shadow economy activities had reduced to 18.2 per cent in 2019.

It was reported that the TIN will be assigned to Malaysians above the age of 18 as well as corporate entities to increase the number of registered taxpayers and reduce tax arbitrage activities.

The plan to introduce TIN was part of the 2020 Budget tabled by the then-Finance Minister Lim Guan Eng on October 11, 2019.

Meanwhile, the e-invoicing mechanism would require businesses to maintain a comprehensive record of their transactions and report fully to the IRB.

IRB said other measures taken to address tax evasion include data sharing and collaboration with government agencies to detect and prevent illegal activities, and promoting the use of digital payments and electronic transactions for transparency and traceability of economic activities.

Apart from working to simplify rules and procedures to reduce the burden on legitimate businesses and promote compliance, IRB said it would also educate taxpayers on their responsibility through the Awareness, Education and Services programme.

"IRB has reached out to taxpayers in a series of engagements with government agencies, business associations in various industries and non-governmental organisations (NGOs)."

https://www.nst.com.my/news/nation/2024/04/1040250/irb-rm52b-recovered-unreported-under-declared-income-2023-nsttv