The MIRB has issued a media release announcing that they have detected 31,598 entities consisting of individuals, businesses, companies and others that have not reported actual income to the MIRB. Detection of these entities have been made based on the information of assets ownership and the ability of the entity to obtain loans/securities exceeding RM500,000.00 and above.
Further, the MIRB has also advised the 31,598 detected entities, especially 23,751 identified as individuals to appear voluntarily at their nearest MIRB branches immediately to register their tax files and report their actual income. For the purpose of the aforementioned, the time frame given is 1 month from 15 June 2022 to 15 July 2022.
After the duration of 1 month, the MIRB will be carrying out enforcement through tax audits, civil and criminal investigations on the entities and individuals concerned on failing to comply with the filing of tax return for each year of assessment, submitting incorrect statement and avoiding themselves from falling under the tax net. Further, criminal investigations will have implications for prosecution in court. Non-compliance and tax evasion will be charged according to offences under Section 112, 113 and 114 of Income Tax Act,1967.
Additionally, income tax is levied on each individual in respect of the income accrued or incurred in Malaysia or received in Malaysia from outside Malaysia for each year of assessment. An individual who has income exceeding the established threshold value is required to register an income tax file accordingly. Further details on the threshold value may be obtained from the official IRB website.
It is noteworthy to mention that the scope of tax chargeability includes income received by an individual in excess of RM34,000 with monthly tax deductions as well as income earned from commercial business, profession and any form of business that has yet to be registered with any authority.
The MIRB’s media release can be accessed via the above link.
