HASiL says tax audits and investigations focus on education and compliance, not punishment, as part of Malaysia MADANI principles
KUALA LUMPUR: Tax audits and investigations conducted by the Inland Revenue Board (HASiL) are intended to educate rather than intimidate taxpayers.
HASiL’s Tax Audit Policy and Quality Division director Jema’ah Sedek stated this approach forms part of its education, awareness, and voluntary compliance strategy aligned with Malaysia MADANI principles.
She explained that the new method emphasises Awareness, Education and Services elements during field visits.
“The audit and investigation process is not a punishment or a one-sided action but a fair and balanced procedure.”
Jema’ah noted that HASiL uses risk analysis systems and various information sources to select cases for review.
These sources include third-party reports, public complaints, and lifestyle monitoring compared to declared income.
She clarified that audits focus on compliance checks while investigations target high-risk cases involving tax evasion or avoidance.
Such investigations may include offences under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
“HASiL now collaborates closely with agencies such as Bank Negara Malaysia, the Malaysian Anti-Corruption Commission and the Royal Malaysia Police to strengthen intelligence on suspicious financial activities.”
Jema’ah highlighted that taxpayers have clear rights during audit and investigation processes.
These rights include identifying officers, appointing licensed tax agents, and accessing documents taken for review.
She reminded taxpayers not to offer gifts or payments to officers to prevent conflicts of interest.
“Do not panic or assume that being selected for an audit means you have done something wrong.”
Jema’ah assured that audits and investigations are standard review processes to ensure accurate tax reporting.
She advised taxpayers to maintain proper financial records and update contact information with HASiL.
Taxpayers should also communicate directly with HASiL for guidance whenever necessary. – Bernama
