In a recent parliamentary inquiry, Tuan Haji Abdul Nasir Haji Idris sought details from the Minister of Finance regarding the amount of penalties and non-tax revenue obtained by the Inland Revenue Board of Malaysia (IRB) through various measures aimed at recovering unpaid taxes and revenue during the years 2022 and 2023.
According to the Ministry of Finance response in a written parliament reply, the total additional taxes and penalties generated from audits conducted in 2022 and 2023 stood at a substantial RM8.2 billion and RM6.2 billion respectively.
“Furthermore, LHDNM has also taken civil legal action and prosecutions under the law to recover outstanding taxes.
The total taxes successfully collected, including compounds and fines, for the years 2022 and 2023 were RM709.7 million and RM465 million respectively.” MoF added in the statement.
Governtment has also introduced Special Voluntary Disclosure Program (SVDP) 2.0, to expand the taxpayer base and encourage tax compliance to boost national revenue.
Under SVDP 2.0, implemented by IRB, taxpayers are offered a zero percent penalty rate for voluntary disclosures made between June 6, 2023, and May 31, 2024.
“As of February 29, 2024, LHDNM has approved a total of 72,534 voluntary disclosure cases, with an estimated tax assessment of RM652.5 million reported, of which RM284 million has been successfully collected.” MoF revealed.
MoF highlighted the governement’s proactive approach in tackling the shadow economy through efforts to enhance tax compliance rates, curb revenue leakage, and build public trust in the national tax system.
“The Government is always proactive in addressing the issue of the shadow economy through methods to increase tax compliance rates, curb revenue leakage, and ultimately enhance public trust in the national tax system.
Various measures and initiatives have been formulated and are being implemented by IRB in efforts to expand the taxpayer base and increase tax revenue collection.
To address tax non-compliance issues, IRB conducts continuous audit and investigation activities to recover taxes and revenue previously uncollected, focusing on taxpayers with high tax risk based on company file categories, as well as companies, payroll, and employers.” MOF said.
