Taxation

Tax audit

Under 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.

A tax audit is an examination of a taxpayer’s business records and financial affairs to ascertain that the right amount of income should be declared and the right amount of tax should be calculated and paid are in accordance with tax laws and regulations.

Letter from IRBM

IRBM might request documents of a company or an individual for the purpose of tax audit by sending letter:

• CP800A – For individual / sole proprietor
• CP700 – For company