The Inland Revenue Board (LHDN) stated that it has identified a total of 31,598 entities who have yet to declare their income to the agency. These include 23,751 individuals, with the remaining being businesses and other entities. 

In a statement, LHDN said that it traced these entities based on their asset ownership, and ability to secure financing or security worth RM500,000 and above. “The tax losses suffered by the government are estimated at RM665 million. This is a significant amount and can adversely impact the country’s economic stability if not addressed immediately,” the agency stressed. 

As such, LHDN urged these entities – particularly the individual taxpayers – to voluntarily file their income taxes at any of its branches. They will be given a one-month grace period from 15 June to 15 July 2022 to do so. 

The agency also warned that it will conduct tax audits, as well as civil and criminal investigations, if the entities fail to file their income taxes within the grace period. “Criminal probes would result in charges being filed in court under the Income Tax Act 1967 for tax evasion,” LHDN further said.

To note, Malaysia’s tax season takes place between 1 March to 30 April each year for individual taxpayers (and up until 15 May if you’re filing through e-Filing). Meanwhile, businesses can file their taxes until 30 June 2022 (or until 15 July if done through e-Filing). 

(Sources: LHDN, Free Malaysia Today)

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