Tax Audits & Investigations
Take the proactive approach in managing your tax audit and investigation risks
Managing tax audit and investigation risks proactively
Malaysia operates a self assessment system where tax audits are an essential tool used by the Inland Revenue Board (“IRB”) to ensure taxpayers are in compliance with the relevant tax laws and regulations. Under the self assessment regime, any non-compliance will potentially attract hefty penalties of up to 300% of the tax under-charged. As part of their enforcement actions, the IRB has been actively conducting tax audits, tax investigations as well as Capital Statement Reviews in recent years. In addition, the IRB has access to various sources of information on taxpayers due to the changed global tax landscape arising from the BEPS initiatives and the Automatic Exchange of Information (AEOI) and Common Reporting Standards where information is being shared amongst tax authorities and government agencies to enhance transparency and compliance.
Hence, it is important to ensure that your organisation or you as an individual taxpayer, have managed your tax obligations appropriately and have put in place relevant supporting documents to defend the position taken in the event of a tax audit or tax investigation. To this end, preventive measures can be undertaken for example, by performing a health check or preparing a capital statement to assess your tax compliance level. Early detection will help towards minimising tax exposures.
If you are facing a tax audit or tax investigation, you should consider what are the strategies and defensive positions that you should take in mitigating or minimising your tax exposure. Appointing a tax professional to assist you in handling a tax audit or tax investigation will help you to manage the matter in a more strategic and effective manner.
We have a dedicated team with vast experience in handling tax audit and investigation cases. We come with proven track records of being able to achieve the desired outcomes for our clients in tax audits or tax investigations.
We would be able to assist you in the following areas:-
- • Perform a health check to detect pitfalls or gaps and formulate solutions to manage the risk
• Prepare a capital statement to understand your tax profile and take necessary precautionary steps
• Review of information / documents, and assess the tax risk prior to submission to the IRB
- Advise on the matters involved in handling a tax audit or investigation
- Discuss and present the justifications to the IRB on the tax position adopted
- Negotiate with the IRB to reach an amicable settlement
- Gather and evaluate critical feedback upon completion of a tax audit or investigation
- Plan for the way forward and formulate appropriate corrective action with the objective to minimize future tax liabilities
- Revise tax computations based on the tax audit adjustments
Hence, we are here to work together with you throughout the journey. Get in touch with us today!
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