LHDN monitoring offshore accounts to ensure tax compliance

 

LHDN chief executive officer Abu Tariq Jamaluddin said if there is any indication of tax non-compliance, the case will be channelled to the audit and investigation team for further action. (Facebook pic)

KUALA LUMPUR: The Inland Revenue Board (LHDN) will monitor information on individuals with offshore accounts and ensure that they pay their taxes.

The board’s CEO, Abu Tariq Jamaluddin, said these measures are based on information received periodically from tax authorities across the world.

“Checks will be conducted to ensure taxes are paid on all offshore savings if these are derived from activities in Malaysia.

“If there is any indication of tax non-compliance, the case will be channelled to the audit and investigation team for further action,” he said at the LHDN engagement session with the media at Sunway Putra Hotel here today.

Abu Tariq said LHDN would also check the individual’s offshore accounts and domestic assets before comparing them with their tax declaration.

“If they don’t match with their assets and disclosures, we will conduct further reviews.”

On another matter, Abu Tariq said LHDN had received 65,000 voluntary declarations, with a total assessment value of RM573 million, through the special voluntary declaration programme 2.0 as of Jan 31.

“Taxpayers who sign up under this programme need not pay penalties. Their declarations are received sincerely and there will be no further review,” he said.

Abu Tariq said the government had also announced the mandatory implementation of e-Invois for taxpayers with an annual income or sales of more than RM100 million from Aug 1, 2024.

The deadline for taxpayers with RM75 million in sales is Jan 1, 2025. Others will need to use e-Invois from June 1, 2025, he added.

Abu Tariq said e-Invois would boost the efficiency of business operations, reduce errors and simplify tax reporting. - FMT