Tax Audit and Investigation
At Deloitte, our knowledge and experience in this specialised area, acquired through assisting many of our clients in reaching an amicable resolution over the years, ensure that we duly understand the key nuances of tax audits and tax investigations.
In a move to enhance its enforcement strategy, the Inland Revenue Board of Malaysia (“IRBM”) has initiated collaborations with other government agencies and has launched various tax collection operations. Many companies have received notices of additional assessments, some amounting to hundreds of millions of Ringgit. Some individuals found that they were on the travel ban list and were unable to leave the country on the day of travel whilst others found their bank accounts garnished.
It is evident that the IRBM has significantly intensified activities on tax audits and back-duty investigations into taxpayers’ financial affairs – whether companies, practices or individuals. These activities are expected to continue to be fortified to ensure that taxpayers are paying their taxes responsibly under the self-assessment tax regime.
How we can assist your organisation
At Deloitte, our professionals are highly experienced in identifying potential areas of dispute, managing tax audits and tax investigations and resolving tax disputes. Our knowledge and experience in this specialised area, acquired through assisting many of our clients in reaching an amicable resolution over the years, ensure that we duly understand the key nuances of tax audits and tax investigations.
Being prepared is key. Before a case is selected for tax audit, we can assist to conduct:
- Company / Individual Tax health check
- Ascertain the potential material tax issues
- Assess the extent of the tax risks
- Identify remedial actions and defence approaches
- Seek technical clarification from the tax policy division
- Engage with the IRBM for reduced penalty under the voluntary disclosure avenue
Personalised session to take your team through:
- Maintaining proper documentation
- The do’s and don’ts of a tax audit and tax investigation
- Evaluate the strengths and weaknesses of personal capital and expenditure statement and identify remedial actions
(Tax audit and tax investigation management)
Being responsive is key. Once a case is selected for tax audit or tax investigation, we can assist to:
- Prepare you for the tax audit or tax investigation process
- Review and assess the IRBM’s findings
- Evaluate the strength of your positions and your options
- Formulate an appropriate response to the IRBM
- Engage with the IRBM with a view to resolve the case
Being proactive is key. Even if a resolution cannot be agreed upon at tax audit or tax investigation stage, a decision was made to escalate the case to the next level, we can assist to:
- Prepare the Form Q
- Formulate the next resolution approach
- Manage the case, before hearing, with a view to reach an amicable resolution
(Post audit / investigation)
Being attentive is key. Though the tax audit / investigation has been completed, it does not end here. We can assist to carry out a post-mortem to:
- Gather and evaluate critical feedback
- Plan for the way forward and formulate appropriate corrective actions