• Tax Investigation and Field Audit

Tax Investigation and Field Audit

When the tax authorities pay a surprise visit

Tax Investigation

Under Malaysian laws, the Malaysian Inland Revenue Board (MIRB) is empowered to make an inspection without notice at a taxpayer’s business premises and other premises necessary where there are grounds for suspicion of deliberate tax avoidance or wilful tax evasion.

The main objective of such visits? To prove that an offence has been committed and impose the appropriate penalties upon the taxpayer, ranging from a fine to imprisonment.

Should the tax authorities pay a surprise visit, what can BDO do for you?

Some of the ways we can help you through the process are:

  • Providing guidance and assistance throughout the whole process
  • Liaising and negotiating with the MIRB on your behalf
  • Setting out the options available, assessing the potential costs and implementing a resolution plan for you
  • Proving tax litigation defence support i.e. assisting your legal counsel where necessary 

Field Audit

Field audits are enforcement measures to ensure compliance with tax regulations, and can take place even without any suspicion of or actual wrongdoing.

Prior to a field audit, notice will be given by the MIRB and the required documents will be requested beforehand, giving the taxpayer time to prepare the necessary documentation.

Even with notification before hand, it is good to be prepared for possible outcomes. BDO understands businesses and can assist to smoothen the process for you. 

We can assist to simplify the journey.

  • Prior to a field audit

Assist with preventive measures such as performing “tax health checks” to highlight potentially contentious issues. We ensure that your documentations are compliant with local regulations.

  • During a field audit

Act as a bridge between you and the MIRB. From experience, this results in a smoother process for both parties. 

  • After a field audit

Liaise with the MIRB on the outcome and negotiate a settlement that is fair and satisfactory to both parties.