PETALING JAYA: Some 31,598 entities consisting of individuals, businesses, companies, and others, have yet to declare their income, says the Inland Revenue Board (LHDN).
LHDN said these entities led to leakages in tax collections amounting to an estimated RM665mil.
"These entities were identified through asset ownership and their ability to secure loans and securities valued at RM500,000 and above.
"The amount of tax losses suffered by the government is estimated to be RM665mil.
"This estimate is a significant amount, as it can give a negative impact on the nation's economic stability if not addressed immediately," said LHDN in a statement on Tuesday (June 14).
LHDN said the 31,598 entities, which consisted of 23,571 individuals, have a one-month grace period, from Wednesday (June 15) until July 15, to go to the nearest LHDN branch to register their income tax and declare their income.
"After this one-month period ends, LHDN will take tax enforcement action, such as audits, civil and criminal investigations on the individuals who failed to file the tax declaration form.
"Criminal investigation can be taken to court. Tax evasion can be charged under Section 112, 113 and 114 of the Income Tax Act 1967," added the LHDN.