KUALA LUMPUR: The Inland Revenue Board has urged all taxpayers to voluntarily disclose any non-compliance or errors in their tax information to benefit from lower penalty rates.
The agency stated it remains committed to increasing revenue collection to drive economic prosperity and public well-being in line with government aspirations.
A comprehensive tax risk analysis conducted from January 2024 to August 2025 detected tax non-compliance across various sectors.
Audits and investigations followed using information sources and advanced analytical technology during this period.
The agency identified 1,033 companies with additional tax liabilities amounting to 15.20 billion ringgit.
It also found 321 individuals with 1.75 billion ringgit in additional taxes during the same timeframe.
This resulted in an overall additional tax including penalties totaling 16.95 billion ringgit.
The IRB stated this illustrates how effective strategies can tackle tax non-compliance regardless of business size or individual circumstances.
Chief executive officer Datuk Dr Abu Tariq Jamaluddin attributed the success to a data-driven approach and advanced technology.
Strategic collaboration with various enforcement agencies enhanced the agency’s monitoring and enforcement capabilities.
He urged taxpayers not to wait until their non-compliance is detected through audits or investigations.
Waiting for detection will result in higher penalties compared to voluntary disclosure.
The IRB always ensures that taxes are collected fairly and equitably from eligible parties according to the statement.
Taxpayers should ensure their tax information remains accurate, complete, and up-to-date to avoid heavier penalties.
Legal action under the Income Tax Act 1967 may follow non-compliance according to the agency.
The Income Tax Audit Framework specifies a 15% penalty rate for voluntary disclosures made before audit commencement.
This rate applies under subsection 113(2) of the Income Tax Act 1967.
A 10% rate applies to taxpayers submitting their first voluntary disclosure through an Amended Return Form.
The lower rate applies when making additional voluntary disclosures within six months from the filing due date. – Bernama
