LHDN’s MyTax portal now allows appeals against Estimated, Deemed, and Reduced Assessments alongside Additional Assessments.
KUALA LUMPUR: The Inland Revenue Board of Malaysia’s (LHDN) e-Assessment Appeal (e-Rayuan Taksiran) facility, introduced through the MyTax portal in June, now allows taxpayers to appeal not only against Additional Assessments but also Estimated Assessments, Deemed Assessments and Reduced Assessments.
LHDN Dispute Resolution Department Policy and Monitoring Division director Zanariah Ahmad said an Estimated Assessment, or best judgment assessment, is issued when a taxpayer fails to submit a Tax Return Form or submits it after the stipulated deadline.
She said Deemed Assessments, whether deemed taxable or deemed non-taxable, are generally not appealable but appeals are still allowed if taxpayers disagree with the tax treatment based on Public Rulings or the prevailing position, rulings and practices of the Director-General of Inland Revenue (DGIR) at the time the assessment was made.
“Reduced Assessments are also generally not appealable as they do not constitute an assessment under Section 2 of the Income Tax Act 1967. However, if there are new issues that have not been raised previously, taxpayers may still appeal against the assessment,” she said when appearing as a guest on Bernama Radio’s *Klinik Cukai* programme here today.
She said understanding the meaning of an assessment appeal under the Income Tax Act 1967 is important to ensure taxpayers are aware of their rights and the available channels before taking action against an assessment.
Zanariah said taxpayers may also appeal against a Notification of Non-Taxability (NPTKC) issued following an audit or investigation, even though the notice is not an assessment notice.
“Appeals may also be lodged against withholding tax if the taxpayer disagrees with its imposition. However, the tax must first be paid to the Director-General of Inland Revenue before an appeal can be submitted,” she said.
She said appeals are also allowed against disputed tax refund amounts and, under Section 111(1) of the Income Tax Act 1967, must be submitted within 30 days from the date the refund notice is received.
In addition, individuals appointed as tax agents under Section 68(1) of the Income Tax Act 1967 may appeal within 30 days of receiving the notice of appointment if they disagree with the appointment.
“The appeal must be submitted using Form Q, the prescribed form under the law, within 30 days. If the deadline is missed, taxpayers may apply for an extension of time using Form N as provided under Subsection 100(1) of the Income Tax Act 1967,” she said.
She added that although the e-Assessment Appeal facility has been introduced, the manual procedures using Forms Q and N remain in force as the system has yet to be fully implemented. Taxpayers may choose only one submission channel, either online or through manual forms at an LHDN office.
To ensure appeals are processed smoothly, taxpayers should comply with the appeal deadline, use the correct form, provide clear grounds for appeal, attach supporting documents, and complete the application in a single session.
