Introduction:
A fair, transparent and equitable tax administration system will enhance public confidence in the tax system. Compliance with tax laws must be strictly enforced and tax offences such as non-compliance and tax evasion should be penalized in accordance with the provisions of the Income Tax Act 1967 (ITA), and latest updated law.
Part I
Under the Self-Assessment System, tax audit is a primary activity of the Inland Revenue Board of Malaysia (IRBM). It is aimed at enhancing voluntary compliance with the tax laws and regulations. A taxpayer can be selected for an audit at any time. However, it does not necessarily mean that a taxpayer who is selected for an audit has committed an offence.
The IRB Audit framework is to ensure that tax audit is carried out in a fair, transparent and impartial manner. This framework outlines the rights and responsibilities of audit officers, taxpayers and tax agents in respect of a tax audit.
Part II
Tax investigation is conducted with the objective to detecting tax evasion. Books of records are seized from a taxpayer’s office by raid or surprise ambush. It would then be examined by investigation unit officers at the investigation office.
