{"id":489,"date":"2011-05-20T12:00:21","date_gmt":"2011-05-20T04:00:21","guid":{"rendered":"http:\/\/www.nbc.com.my\/blog\/?p=489"},"modified":"2013-03-07T00:39:50","modified_gmt":"2013-03-06T16:39:50","slug":"increasing-tax-audits-irb-malaysia","status":"publish","type":"post","link":"https:\/\/www.nbc.com.my\/blog\/increasing-tax-audits-irb-malaysia\/","title":{"rendered":"Increasing Tax Audits by IRB Malaysia"},"content":{"rendered":"<p style=\"text-align: left;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft  wp-image-2870\" title=\"LHDN-1\" src=\"https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/LHDN-1.jpg\" alt=\"\" width=\"207\" height=\"155\" srcset=\"https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/LHDN-1.jpg 259w, https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/LHDN-1-105x78.jpg 105w, https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/LHDN-1-133x100.jpg 133w, https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/LHDN-1-24x17.jpg 24w, https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/LHDN-1-36x26.jpg 36w, https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/12\/LHDN-1-48x35.jpg 48w\" sizes=\"(max-width: 207px) 100vw, 207px\" \/>Following the implementation of Self Assessment Taxation System in Malaysia years ago, the Inland Revenue Board switches its focus and attention in doing tax audits to ensure taxpayers comply with the legal provisions and the current tax regulations.<\/p>\n<p style=\"text-align: left;\">Tax audits are conducted through\u00a0<strong>field audits<\/strong>\u00a0and\u00a0<strong>desk audits<\/strong>.\u00a0<!--more--><\/p>\n<p style=\"text-align: left;\"><strong><span style=\"color: #ff0000;\">TAX AUDITS<\/span><\/strong><\/p>\n<table class=\"alignleft\" width=\"360\" border=\"1\" cellspacing=\"0\" cellpadding=\"2\">\n<tbody>\n<tr>\n<td valign=\"top\" width=\"120\"><\/td>\n<td valign=\"top\" width=\"54\">\n<p align=\"center\"><strong><span style=\"color: #ff0000;\">2005<\/span><\/strong><\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"center\"><strong><span style=\"color: #ff0000;\">2006<\/span><\/strong><\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"center\"><strong><span style=\"color: #ff0000;\">2007<\/span><\/strong><\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"center\"><strong><span style=\"color: #ff0000;\">2008<\/span><\/strong><\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"center\"><strong><span style=\"color: #ff0000;\">2009<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"120\">\n<p align=\"left\"><strong>Number of cases resolved<\/strong><\/p>\n<\/td>\n<td valign=\"top\" width=\"54\">\n<p align=\"right\">7,204<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">6,741<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">279,175<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">1,052,939<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">1,399,660<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"120\">\n<p align=\"left\"><strong>Taxes and Penalties (RM\u2019Mil)<\/strong><\/p>\n<\/td>\n<td valign=\"top\" width=\"54\">\n<p align=\"right\">635.40<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">692.68<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">1,410.57<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">1,697.16<\/p>\n<\/td>\n<td valign=\"top\" width=\"60\">\n<p align=\"right\">3,054.95<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"ad-middle\"><script type=\"text\/javascript\">\/\/ <![CDATA[\ngoogle_ad_client = \"ca-pub-0977930978369856\";\n\/* 336x280 Large Rectangle (Content) *\/\ngoogle_ad_slot = \"2929322283\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/ ]]><\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\/\/ <![CDATA[\n\n\/\/ ]]><\/script><\/div>\n<hr \/>\n<p style=\"text-align: left;\"><strong>Field audits <\/strong>&#8211; A notice informing of a visit to the taxpayer\u2019s business premises and the information\/documents that have to be prepared is issued prior to field audit. (In 2009, 7,942 resolved cases or 0.6% of total resolved cases conducted via field audits)<\/p>\n<p style=\"text-align: left;\"><strong>Desk audits <\/strong>\u2013 On the other hand, desk audit is conducted at IRBM\u2019s office based on the information submitted. (In 2009, 1,391,718 resolved cases or 99.4% of total resolved cases conducted via desk audits)<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/05\/taxaudits.png\"><img loading=\"lazy\" decoding=\"async\" style=\"background-image: none; margin: 0px 4px 0px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; padding-top: 0px; border: 0px;\" title=\"taxaudits\" src=\"https:\/\/www.nbc.com.my\/blog\/wp-content\/uploads\/2011\/05\/taxaudits_thumb.png\" alt=\"taxaudits\" width=\"250\" height=\"251\" align=\"left\" border=\"0\" \/><\/a><\/p>\n<p style=\"text-align: left;\">From the diagram on the left, interesting to see that those tax audits resolved mainly arising from non-company cases (1.3 million cases in 2009) compared to company cases (only 68k cases in 2009).<\/p>\n<p style=\"text-align: left;\">Tax revenue contribution from companies in 2009 made up 46% of total tax revenue and individual tax revenue only made up of 18% in 2009. But when come to tax audits, it is the other way round. More tax audits cases on non-companies and recovered higher taxes. Are we saying more tax omissions or even evasions on the personal tax? Perhaps.<\/p>\n<p style=\"text-align: left;\"><em>(Source: THE INLAND REVENUE BOARD OF MALAYSIA \u2013 ANNUAL REPORT 2009)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following the implementation of Self Assessment Taxation System in Malaysia years ago, the Inland Revenue Board switches its focus and attention in doing tax audits to ensure taxpayers comply with the legal provisions and the current tax regulations. Tax audits are conducted through\u00a0field audits\u00a0and\u00a0desk audits.\u00a0<\/p>\n","protected":false},"author":6,"featured_media":2870,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,43],"tags":[25,8],"class_list":["post-489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-malaysia-tax-and-lhdn-irb","category-personal-individual-tax","tag-irb","tag-tax"],"_links":{"self":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts\/489"}],"collection":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/comments?post=489"}],"version-history":[{"count":0,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/posts\/489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/media\/2870"}],"wp:attachment":[{"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/media?parent=489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/categories?post=489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nbc.com.my\/blog\/wp-json\/wp\/v2\/tags?post=489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}