Lembaga Hasil Dalam Negeri (LHDN) has revealed that 321 individuals were found to owe a total of RM1.75 billion in additional taxes between January 2024 and August 2025. The findings came from audits and investigations carried out as part of a nationwide tax risk analysis.

At the same time, LHDN is urging taxpayers to voluntarily disclose any errors or instances of non-compliance in their tax filings. The agency said those who come forward on their own will face lower penalty rates compared to penalties imposed after audits or investigations.

Tax Risk Analysis And Findings

During the 20-month period, LHDN identified 1,033 companies with additional tax liabilities amounting to RM15.20 billion. Together with the RM1.75 billion owed by individuals, the total additional tax detected, including penalties, reached RM16.95 billion.

LHDN said these results show how effective monitoring strategies can detect non-compliance across all sectors, regardless of business size or individual circumstances.

Technology And Collaboration Strengthen Enforcement

Chief executive officer Datuk Dr Abu Tariq Jamaluddin said the outcomes reflect the agency’s use of advanced data analytics and strategic collaboration with enforcement bodies.

“I urge taxpayers not to wait until their non-compliance is detected through audits or investigations, as this will result in higher penalties. LHDN always ensures that taxes are collected fairly and equitably from those who are eligible,” he said.

Importance Of Voluntary Disclosure

LHDN reminded taxpayers to keep their information accurate, complete, and up to date to avoid heavier penalties and potential legal action under the Income Tax Act 1967.

According to the Income Tax Audit Framework, voluntary disclosures made before an audit begins carry a 15% penalty rate under subsection 113(2) of the Act. Taxpayers who file an Amended Return Form as their first voluntary disclosure and then submit an additional voluntary disclosure within six months of the filing deadline are subject to a lower 10% penalty rate.

Strengthening Compliance For National Revenue

The agency reiterated that voluntary compliance allows taxpayers to resolve errors at lower cost and with fewer legal risks. It added that stronger compliance contributes to government revenue, supporting economic development and public well-being.

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• TAGS:
• Datuk Dr Abu Tariq Jamaluddin
• Income Tax Audit Framework
• Lembaga Hasil Dalam Negeri
• LHDN
• Non Compliance
• Taxes