KUALA LUMPUR: The Inland Revenue Board (LHDN) said it will increase audit and investigation into tax evaders with high-value assets and offshore accounts holders this year.
The scrutiny into offshore account holders particularly, would be helped by periodic information received from tax regulators around the world.
LHDN chief executive officer Datuk Abu Tariq Jamaluddin explained that cases can be reopened up to five years later in instances of negligence and fraud, with no time restrictions.
"We will compare (information we receive) with the person's declaration. If they don't match the disclosure, then we will conduct further reviews on the matter," Abu Tariq said when speaking to reporters at today's media engagement session hosted by LHDN.
He said LHDN regularly receives information from other countries regarding the citizens' accounts held abroad.
"We have that information, and we will check whether the deposits they have made have been taxed. If the funds originate from Malaysia and taxes have not been paid, then we have a reason to conduct further checks to ensure that those deposits have been taxed," he added.
According to him, reviews and investigations will ensure taxes are paid on overseas holdings if they stem from or are the result of activities within the country."Any indications of tax non-compliance will be referred to audit and investigation teams for further action," he said.
Abu Tariq emphasised that LHDN will prioritise individuals or businesses earning income from online activities, ensuring proper tax reporting for earnings through this channel.
He noted that LHDN possesses relevant information and data on this group and will reach out to them to confirm compliance with income reporting requirements.
Abu Tariq said LHDN is also looking to scrutinise "shadow economy" activities that involve unregistered and unlicensed businesses that evade tax declarations, including part-time jobs paid in cash to avoid income reporting and tax payments.
"The activities of foreigners or activities involving foreigners may indeed be subject to taxation, and we want to take action to ensure that they all pay taxes if they have reached the threshold for taxation, not only foreigners but also those behind them," he added.
Abu Tariq noted that many foreigners leverage on local licences, prompting an examination of their compliance with tax laws.
"We will go out to meet with these groups and identify them and also identify those behind them."If they cooperate, we will assist them by providing information on tax issues. We hope that with the information they provide, we can also identify who is behind them," he said.
He further stated that individuals who have not previously filed tax reports will be requested by LHDN to do so, with penalties imposed for unreported income.
LHDN has set a direct tax collection target of RM197 billion this year.
In 2023, it collected RM183.3 billion in taxes.