IRBM collected RM16.95 billion in additional taxes (Jan 2024–Aug 2025), with 90% from companies. Learn how Big Data, AI, and e-invoicing are used to detect non-compliance, and what Malaysian businesses can do to stay compliant.
🚨 Breaking News from IRBM
On 12 September 2025, the Inland Revenue Board of Malaysia (IRBM / HASiL) announced that it has successfully collected RM16.95 billion in additional taxes through audits and investigations between January 2024 and August 2025.
The breakdown is clear:
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1,033 companies → RM15.20 billion (≈90%)
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321 individuals → RM1.75 billion (≈10%)
This shows that corporate taxpayers are firmly in IRBM’s spotlight.
📊 How IRBM Is Detecting Non-Compliance
According to the media release, IRBM is strengthening enforcement using:
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Big Data Analytics → scanning millions of records for red flags
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AI Technology → cross-checking taxpayer income and expenses across multiple sources
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E-Invoicing Systems → tracking transactions in real-time
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Collaboration with Other Agencies → banking, customs, and enforcement data sharing
This represents a shift to technology-driven tax enforcement, where inconsistencies and suspicious patterns are detected automatically.
⚖️ Penalty Rates for Voluntary Disclosure
IRBM is urging taxpayers to make voluntary disclosure before audit or investigation begins. The benefits are clear:
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15% penalty – Voluntary disclosure before audit (s.113(2) ITA 1967)
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10% penalty – If additional voluntary disclosure is made within 6 months of filing deadline
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❌ Much higher penalties apply if non-compliance is caught through audit or investigation
💡 In short: Act before IRBM finds the issue to save money.
✅ What Malaysian Businesses Should Do Now
To avoid becoming part of the next billion-ringgit collection, companies should take immediate steps:
1. Keep Proper Documentation
Every claim (expenses, deductions, allowances) must have supporting invoices, agreements, and approvals.
2. Review Advertisement & Marketing Expenses
If you advertise on foreign platforms (e.g. Facebook, Google), check if withholding tax (WHT) applies.
3. Check Related Party Transactions
Payments to directors, subsidiaries, or overseas affiliates are often audited — ensure arm’s length pricing and proper documentation.
4. Ensure E-Invoicing Readiness
E-invoicing allows IRBM to track transactions in real-time. Businesses must prepare for full compliance.
5. Consider a Tax Health Check
Identify risks before IRBM does. A proactive review reduces exposure and gives peace of mind.
💼 How KS Chia & Associates Can Help
At KS Chia & Associates, we assist SMEs and corporate clients with:
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Tax Health Checks – identifying potential audit risks
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Voluntary Disclosure Support – minimizing penalties before audit begins
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Withholding Tax & Cross-Border Issues – ensuring compliance with WHT rules
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E-Invoicing Advisory – helping businesses adapt to Malaysia’s digital tax reporting system
📞 WhatsApp us today at +6011 2366 5233 for a confidential discussion.
Don’t wait until IRBM’s analytics flags your company. Proactive compliance saves money, time, and reputation.
