Deputy Minister of Finance, Lim Hui Ying, explained that the Malaysian government, through the Immigration Department, implements travel restrictions on individuals listed with outstanding debts and taxes under various agencies, including LHDN, the Royal Malaysian Customs Department, and the Insolvency Department.
“These restrictions aim to track down debtors or taxpayers who fail to settle their tax arrears despite appropriate warnings,” she said in Dewan Negara today (Apr 1), in response towards Ros Suryati Alang’s concern about the travel restrictions imposed by the Inland Revenue Board of Malaysia (IRB) on individuals or taxpayers who fail to renew their passports at the Immigration Department of Malaysia offices.
IRB enforced travel restrictions in accordance with the provisions of the Income Tax Act 1967 and the Real Property Gains Tax Act 1976.
Individuals with outstanding income tax or real property gains tax arrears are subject to travel restrictions.
Additionally, IRB also collaborated with the Immigration Department to prevent individuals or company directors who evade tax liabilities from traveling abroad.
“As of February 29, 2024, a total of 182,666 travel restriction cases have been implemented by LHDN.
Out of these, 171,571 cases involve individuals with outstanding income tax arrears, while 11,095 cases relate to individuals with real property gains tax arrears,” Lim Hui Ying said.
Before implementing travel restrictions, IRB initiated initial actions by sending several warning letters regarding tax payment demands, issuing tax arrears notification emails, and making phone calls to the involved taxpayers. Failure to settle tax arrears within the stipulated period results in taxpayers facing travel restrictions.
To prevent disruptions to overseas travel due to tax arrears, IRB advises all taxpayers to check their tax arrears status and travel restrictions before planning any trips abroad.
Taxpayers can check their tax arrears status via the MyTax portal and verify travel restrictions on the Immigration Department website.
“If taxpayers are restricted from boarding flights, immigration officers will refer them to LHDN public relations officers to facilitate clearance for overseas travel.
Upon reaching an agreement between taxpayers and LHDN officers, clearance will be granted immediately after settling tax arrears, either partially or in full,” Lim Hui Ying added.
