KUALA LUMPUR: The Inland Revenue Board (LHDN) will continue with its audits and investigations to detect any non-compliance among Malaysian taxpayers.

Its deputy chief executive officer (Compliance) Datuk Hisham Rusli said all actions are carried out following the law.

He said 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’ as LHDN acts under the authority of the Income Tax Act 1967 and other governing laws,” Hisham said on the Ruang Bicara programme titled Tax Enforcement for the Benefit of All that aired on Bernama TV on Thursday night.

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

“Following the Budget 2025 presentation by Prime Minister Datuk Seri Anwar Ibrahim on Oct 18, it is clear that 41.8% 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 providing various assistance to the people of Malaysia,” Hisham added.

He also urged taxpayers to come forward and fulfil their responsibilities for the development and prosperity of the country.“The audit by LHDN is not something to be feared. With proper preparation, clear understanding and a positive attitude, the 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.

https://www.thestar.com.my/news/nation/2024/11/23/lhdn-to-tighten-compliance-with-audits-probes