KUALA LUMPUR (Nov 22): The Inland Revenue Board (LHDN) will continue to enforce compliance through audits and investigations to detect any non-compliance among taxpayers in Malaysia.

LHDN deputy chief executive officer (Compliance) Datuk Hisham Rusli said that all actions are carried out in accordance with the laws set forth.

He said that while tax compliance has been increasing every year, there are still taxpayers who take advantage of not paying the taxes they owe.

"Through audits, LHDN can detect non-compliance that may occur, including tax evasion, underreporting of income, or claiming unlawful deductions and exemptions.

"There is no issue of 'selective prosecution' in LHDN's actions. What is true is that LHDN acts under the authority of the Income Tax Act 1967 and other governing laws," he said when appearing as a guest on the "Ruang Bicara" programme titled "Tax Enforcement for the Benefit of All" aired on Bernama TV on Thursday night.

He noted that LHDN has driven much transformation and innovation in the tax administration in Malaysia and is one of the largest contributors to the country's revenue.

"Following the 2025 Budget presentation by Prime Minister Datuk Seri Anwar Ibrahim on Oct 18, it is clear that 41.8 per cent of the national revenue comes from income tax collections administered by LHDN.

"Therefore, LHDN's function is crucial as the country's direct tax revenue collector agency, helping the government ensure sustainable economic development and provide various assistance to the people of Malaysia," he added.

He also urged taxpayers to come forward and fulfill their responsibilities for the development and prosperity of the country.

"The audit action by LHDN is not something to be feared. With proper preparation, clear understanding, and a positive attitude, the audit process can be handled calmly and smoothly.

"Treat it as an opportunity to improve financial management and ensure that we are on the right track in complying with the law," he said.

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