LHDN monitors data regularly to identify non-taxpayers, says CEO

CYBERJAYA: The Inland Revenue Board (LHDN) regularly monitors its data to identify companies and individuals who do not pay taxes, Datuk Dr Abu Tariq Jamaluddin said.

The LHDN chief executive officer pointed out that the revenue-collecting agency has a legal right to take stern action, such as conducting searches on premises.

“With companies, it’s always the same...but we do have methods to determine which of them are not paying taxes.

“We receive information from various sources and analyse it all year long to determine which cases need auditing and which cases need investigation.

“This is actually a continuous effort, but we are stepping up the game this year to identify companies that aren’t paying taxes," he said.

Abu Tariq said this on Tuesday (April 30) during the LHDN 2024: Echoes of Aidilfitri celebration at the agency’s headquarters here.

He said that the LHDN is not selective in handling its cases and would take action against those who evaded paying taxes.

“In some cases, searches (on-premises) are needed, but in lower-risk cases, an audit is sufficient.

“So for the more serious cases, yes, it is possible it will involve searches,” he added.

During last month's 2024 LHDN Day event, Prime Minister Datuk Seri Anwar Ibrahim told the agency to be firm and courageous in hunting errant taxpayers regardless of their position, rank and wealth.

Anwar said it is important for LHDN to ensure that no entity gets to evade tax obligations due to their influence.

Last year, LHDN recorded a tax collection of RM183.3bil, an increase of RM7.8bil from the previous year.

According to Anwar, the increase in tax collection has helped to improve the Sumbangan Asas Rahmah (SARA) programme, which has doubled its payments as the number of recipients jumped to 700,000 from 210,000 the year before.