We often hear or read about the importance of being transparent and declaring every source of income rightfully. Why? Because falsifying income intentionally would put one in jeopardy of wilful tax evasion which leads tax investigations by the Inland Revenue Board (IRB). Tax evasion is a criminal activity that is strictly prohibited under the Malaysia laws! ❌
Tax investigations are performed when a taxpayer is under the suspicion of fraud. IRB is authorised to raid business or personal premises with no prior notice to take necessary documentations. The penalties of being found guilty could be a hefty fine or imprisonment.
Tax audit is also performed by the IRB, however, those are more of a routine inspection on a taxpayers’ income. Hence, it’s important to keep all receipts and relevant documents for at least 7 years.
IRB Malaysia provides information on income tax filings and its penalties. However, if you need a tax specialist for tax planning, do get in touch with us at https://wa.me/60122192492.
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