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Malaysian Tax Agency Says Audits Not Politically Motivated

by Mary Swire, Tax-News.com, Hong Kong

27 September 2017


Malaysia's Inland Revenue Board (LHDNM) has denied allegations that it is more aggressively pursuing taxpayers affiliated with opposition political parties or their supporters.

In a September 26 statement that comes in the run-up to elections, the Inland Revenue Board said: "LHDNM's case selection system for enforcement activities [is] solely based on criteria pertaining to failure to comply with taxation laws. LHDNM [does] not maintain in its database information on race, religion much less individual political inclinations as these do not contribute to its risk assessment."

It concluded: "LHDNM places great emphasis on carrying out its duties at the highest level of professionalism and integrity. LHDNM will continue to ensure that its enforcement agenda serves towards creating a fair environment for taxpayers who without fail carry out their responsibility in contributing to the nation's building."

In September the LHDNM dismissed as fake news a purported leaked message that was said to have revealed that tax officials had individual targets of collecting an extra MYR6m (USD1.4m) from taxpayers.

TAGS: tax | value added tax (VAT) | law | audit | enforcement | Malaysia | Tax

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