Abide by audit deadlines or face more assessments, urges LHDN

The Star

09-07-2025

KUALA LUMPUR: The Inland Revenue Board (LHDN) has advised taxpayers to respond within the stipulated timeframe during a tax audit.
LHDN senior assistant director Rohaizad Abd Fandi said failure to do so will be deemed as a lack of supporting documentation for the claims made, which may result in them being disallowed and additional assessments being issued.
'Any ineligible claim or claim that cannot be substantiated with valid evidence constitutes an offence under the Income Tax Act 1967.
'A Notice of Additional Assess­ment will be issued, and the taxpayer will be required to settle the amount within the prescribed period,' he said during an appearance on Bernama Radio's Klinik Cukai segment titled 'Kena Audit? Tenang dan Fahami Dahulu Proses dan Kepentingannya'.
Rohaizad said many taxpayers still view audits negatively, with some reacting in panic.
He stressed that tax audits are a routine process to verify the accuracy and transparency of information submitted in tax returns.
Rohaizad advised taxpayers to remain calm when selected for an audit, to first understand the contents of the notice issued and to contact the nearest LHDN office or attend in person to seek further clarification.
'Taxpayers have clear rights during the audit process, including the right to be formally notified before an audit is initiated,' he said, Bernama reported.
Taxpayers are also entitled to a reasonable period to prepare the required documents, to request an extension formally and to file an appeal if they disagree with the audit findings, he said.
Rohaizad added that taxpayers may seek assistance from qualified tax agents, especially for large-scale businesses with complex financial structures involving numerous transactions or multiple income sources.
He said tax audits may vary depending on the type and complexity of the case. As such, taxpayers are advised to fully cooperate throughout the process and ensure all relevant supporting documents are properly maintained.
He also reminded taxpayers to settle any outstanding taxes as instructed to avoid legal action, including the possibility of travel restrictions.