KUALA LUMPUR: The Inland Revenue Board’s (LHDN) audit on more than half a million taxpayers netted RM3.7bil in additional taxes and penalties as of June, says Datuk Dr Abu Tariq Jamaluddin.

The LHDN chief executive officer said its main focus continued to be on high-net-worth individuals, the shadow economy, those suspected of aggressive tax planning, online activities, cross-border transactions as well as offshore financial assets.

“As of June 30, about 525,000 taxpayers have been audited and investigated for various non-compliance,” he said in his speech at the National Tax Conference 2024 here yesterday, which was officiated by Prime Minister Datuk Seri Anwar Ibrahim.

Abu Tariq added that Tax Administration 3.0, a tax administration system driven by technology towards efficiency, transparency and taxpayer convenience, served as guide for LHDN’s strategies as e-invoicing enhanced its capabilities.

“LHDN will also continue to focus on enforcement activities through audit and investigations to ensure that there are no leakages to the government’s revenue.

“George Osborne, during his tenure as the United Kingdom’s Chancellor of Exchequer (from 2010 to 2016), when stating that the United Kingdom was targeting tax evasions and offshore 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.

“So, I urge taxpayers who are in doubt of their tax treatment to come forward or seek guidance from LHDN to avoid penalties and fines as a result of being audited or investigated,” he added.

On e-invoicing, Abu Tariq said in the last few months, LHDN had been gearing up for the rollout of e-invoicing for the first category of taxpayers – those with a turnover of over RM100mil a year.

“We acknowledge that there are challenges to be overcome. We are committed to providing comprehensive support throughout this journey,” he said.

Abu Tariq had previously said companies and businesses need not fear hefty fines or jail terms if there is a “good reason” for non-compliance when mandatory e-invoicing starts Aug 1.

Under the rollout, businesses with revenue between RM25mil and RM100mil must implement e-invoicing by Jan 1 next year.

https://www.thestar.com.my/news/nation/2024/07/23/lhdn-nearly-rm4bil-in-extra-taxes-penalties-netted