LHDN’s e-invoice review uncovers RM3.5bil in unreported income

 The Inland Revenue Board collects RM760.7 million in taxes through this exercise.

LHDN conducted the 2026 national-level e-invoice compliance review operation nationwide from April 20 to 24. (Bernama pic)

PUTRAJAYA:

 The Inland Revenue Board (LHDN) has identified non-compliance by taxpayers through its review of e-invoice data, prompting thousands of taxpayers to voluntarily regularise their tax affairs.

In a statement today, LHDN said it had 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 return forms, declaring a total of RM3.5 billion in income, involving RM760.7 million in taxes payable.

LHDN said taxpayers who have yet to submit their returns despite receiving reminders may face further action, including audits and enforcement measures.

“In this regard, LHDN 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, LHDN conducted the 2026 national-level e-invoice compliance review operation nationwide from April 20 to 24.

During the operation, 108 taxpayers were found to have yet to implement e-invoicing, despite being required to do so under Phase 1 and Phase 2 of the rollout.

Since the e-invoice system was introduced on Aug 1, 2024, a total of 225,604 taxpayers have adopted the system, issuing a combined 1.299 billion e-invoices.

LHDN said this strong uptake reflected positive support from taxpayers for digitalisation initiatives, which are aimed at improving business operations and ensuring more efficient and systematic record-keeping. - FMT