Insight - Beware the tax audit microscope

With RM120bil direct tax collection targets announced in the pre-budget statement, we expect that the IRB will intensify tax audit activities into the taxpayer’s financial business affairs from 2022. This is expected to ensure that taxpayers are paying their taxes responsibly.

IN a pre-budget statement for Budget 2022, the Finance Minister caused a stir of interest when he mentioned that tax compliance is being considered as one of the measures to potentially increase Malaysia’s tax revenue.

In Malaysia, the introduction of the self-assessment tax regime in 2001 for companies and 2004 for businesses, partnerships, co-operatives and salaried individuals have effectively shifted the duty of computing taxpayer’s annual tax liabilities from the Inland Revenue Board (IRB) to the taxpayers.