PUTRAJAYA: The Inland Revenue Board (LHDN) has identified taxpayer non-compliance through its review of e-invoice data, prompting thousands of taxpayers to voluntarily regularise their tax affairs.
In a statement yesterday, the LHDN said it has been issuing reminder notices, or “nudges”, to encourage taxpayers to disclose any undeclared income or rectify errors in their tax filings.
As a result of this approach, 38,906 taxpayers have submitted their income tax returns, declaring a total of RM3.5bil in income, involving RM760.7mil in taxes payable.
The IRB said taxpayers who have yet to submit their returns despite receiving reminders may face further action, including audits and enforcement measures.
“In this regard, the IRB calls on all parties to fulfil their tax obligations by accurately reporting income and paying taxes accordingly,” read the statement.
To further strengthen compliance with the e-invoicing system, the LHDN conducted the 2026 National-Level E-Invoice Compliance Review Operation nationwide from April 20 to 24, reported Bernama.
During the operation, it was discovered that 108 taxpayers had not yet adopted the e-invoicing system, despite being mandated to do so under Phases 1 and 2 of the rollout.
Since the introduction of the e-invoice system on Aug 1, 2024, a total of 225,604 taxpayers have adopted it, issuing a combined 1.299 billion e-invoices.
The LHDN said this strong uptake reflects strong taxpayer support for digitalisation initiatives aimed at improving business operations and ensuring more efficient, systematic record- keeping.
