KUALA LUMPUR: Some 525,000 taxpayers have been audited and investigated for non-compliance, with the Inland Revenue Board (LHDN) imposing RM3.7bil in additional taxes and penalties as of June 30, 2024, says Datuk Dr Abu Tariq Jamaluddin.

The LHDN chief executive officer said the board will continue to focus on high net worth individuals, shadow economy, aggressive tax planning, online activity, cross border as well as, transaction and offshore financial assets.

"In line with this, we will continue to ensure that the country’s revenue collection rises in tandem with Malaysia’s economic growth, which is projected at 5.8% in the second quarter of 2024," he said in his speech at the National Tax Conference 2024 on Monday (July 22).

The conference, which was held at the Kuala Lumpur Convention Centre, was launched by Prime Minister Datuk Seri Anwar Ibrahim.

Abu Tariq said the board’s enforcement activities via audits and investigations aimed to plug leakages in government revenue. He said much of LHDN’s strategies were driven by its 'Tax Administration 3.0' system to boost efficiency, transparency, and taxpayer convenience, as e-Invoicing enhances its capabilities.

"George Osborne, during his tenure as United Kingdom’s former Chancellor of Exchequer, when stating that the United Kingdom was targeting tax evasions and off-shore tax havens, had said that ‘everyone must pay their fair share’”.

"This also rings true for us. When the compliant pay their taxes and the non-compliant don’t, it creates an unjust society," he said.

"So, I urge taxpayers that are in doubt of their tax treatment to come forward or seek guidance from HASiL to avoid being faced with penalties and fines as a result of being audited or investigated," he added.

On the issue of einvoicing, Abu Tariq said in the last few months, LHDN had been gearing up for the roll-out of einvoicing for the first category of taxpayers, who are those with RM100mil turnover or more.

"We acknowledge that there are challenges that need to be overcome and therefore we are committed to providing comprehensive support throughout this journey," he said.

He had previously said that companies and businesses need not fear hefty fines or jail terms if there is a “good reason” for non-compliance with the mandatory einvoicing starting this Aug 1.

Under the rollout plan, businesses with revenue between RM25mil and RM100mil must implement einvoicing by Jan 1 next year.

https://www.thestar.com.my/news/nation/2024/07/22/rm37bil-added-taxes-and-penalties-imposed-for-non-compliance-in-1h2024-says-lhdn-chief