On 1 May 2022, the Malaysian Inland Revenue Board (“MIRB”) published three tax audit frameworks including tax audit framework for petroleum and finance-insurance.
Audit Framework for tax and petroleum replacing the previous versions which were dated 15 December 2019. Tax Audit Framework Finance and Insurance replaces the previous version which was dated 18 November 2020. The provided guidance is largely similar to that of the earlier frameworks. The main changes in the latest tax audit frameworks concern two sections that are common to all three frameworks.
- Voluntary disclosure-only applicable to taxpayers who have submitted their tax returns.
- Offences and penalties-This includes that if any understatement or omission of income is discovered during an audit, a penalty may be imposed under subsection 113(2) of the Income Tax Act (ITA) equal to 100% of the reduced (underpaid) tax amount.
All frameworks became effective from 1 May 2022 and are currently only available in the Malay language.
