KUALA LUMPUR (Feb 15): The Inland Revenue Board (IRB) is closely monitoring individuals who own offshore bank accounts and will take action against any tax evasion, says its chief executive officer, Datuk Abu Tariq Jamaluddin.
During a media engagement session on Thursday, Abu Tariq, who was appointed on Dec 17 last year, said that the income tax authority periodically received information on individuals keeping money abroad from tax authorities worldwide.
The agency will examine this information to ensure that tax has been paid on savings abroad, especially if it originates or results from activities in the country, he said.
He stressed that the cases indicating tax non-compliance will be forwarded to the audit and investigation team for further action.
Under the law, the IRB has the authority to reopen cases from the past five years, with no specified time limit, particularly if there is evidence of negligence or fraud.
Abu Tariq said, as mentioned in Budget 2024 by Prime Minister Datuk Seri Anwar Ibrahim, that the IRB's tax collection target for 2024 is set at RM197 billion. To achieve this objective, the IRB has formulated strategies with a primary focus on taxpayer categories and behavior.
He specified that one of the key areas of concentration for the IRB this year will be individuals whose assets and wealth do not align with their reported tax information.
In addition, Abu Tariq also emphasised the IRB's focus on addressing shadow economy cases, targeting unregistered and unlicensed businesses.
This includes part-time jobs paid in cash to evade tax reporting, with attention directed towards both foreign individuals conducting business activities and local citizens engaged in the shadow economy.
He said that the IRB will also focus on individuals and companies involved in online income-generating activities, as the agency possesses pertinent information for this category and intends to reach out to verify the implementation of income reporting.
IRB, Abu Tariq said, takes tax leakages seriously, especially in activities between related companies, with a specific focus on cross-border transactions, including those involving Labuan entities.
"IRB will also focus on institutions, organisations, and funds granted exempt status under Section 44(6) of the Income Tax Act 1967.
"The IRB will take legal action, including prosecution, if there is evidence of misappropriation of funds by organisations, such as diverting collection funds for personal benefit rather than their intended purpose," he added.