BERNAMA – Taxpayers Urged To Disclose Non-compliance Voluntarily To Avoid Higher Penalties

KUALA LUMPUR, Sept 12 (Bernama) — The Inland Revenue Board (IRB) has urged all taxpayers to voluntarily disclose any non-compliance or errors in their tax information to benefit from lower penalty rates compared to those imposed via audits or investigations.

In a statement today, the IRB said it remains committed to continually increasing revenue collection to drive economic prosperity and the well-being of the people, in line with the government’s aspirations.

“From Jan 1, 2024, to Aug 31, 2025, a comprehensive tax risk analysis was conducted to detect tax non-compliance across various sectors.

“This was followed by audits and investigations based on information sources and the use of advanced analytical technology,” the agency said.

During this period, the agency identified a total of 1,033 companies with additional tax liabilities amounting to RM15.20 billion, and 321 individuals with RM1.75 billion in additional taxes, resulting in an overall additional tax, including penalties, of RM16.95 billion.

“This illustrates how effective strategies can tackle tax non-compliance, irrespective of business size or individual circumstances, thereby strengthening the national tax system,” the IRB added.

its chief executive officer Datuk Dr Abu Tariq Jamaluddin said the success was the result of a data-driven approach, the use of advanced technology, and strategic collaboration with various enforcement agencies that enhanced the agency’s monitoring and enforcement capabilities.

“I urge taxpayers not to wait until their non-compliance is detected through audits or investigations, as this will result in higher penalties.

“IRB always ensures that taxes are collected fairly and equitably from those who are eligible,” he said in the same statement.

Taxpayers should ensure that their tax information is always accurate, complete, and up-to-date to avoid heavier penalties and legal action under the Income Tax Act 1967 (ITA).

According to the Income Tax Audit Framework, the penalty rate for voluntary disclosures made before an audit begins is 15 per cent, as per subsection 113(2) of the ITA 1967.

Meanwhile, a 10 per cent rate applies to taxpayers who have submitted their first voluntary disclosure through an Amended Return Form and subsequently make an additional voluntary disclosure within six months from the due date for filing the Income Tax Return Form.

— BERNAMA

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