The board also denied a claim by DAP’s Lim Guan Eng that these taxpayers were being unfairly targeted.

Lim’s remarks came after the Chartered Tax Institute of Malaysia (CTIM) claimed that LHDN had issued letters demanding taxes due before 2018 from those who had enrolled in the special voluntary disclosure programme (SVDP). (https://www.freemalaysiatoday.com/category/nation/2021/03/08/why-go-after-those-who-signed-up-for-amnesty-plan-lim-asks-lhdn/)

In response to FMT’s request for comment, LHDN said that the assurance under the SVDP – that audit would not be carried out for the years where taxable income was declared – remains.

It said, however, that the SVDP came with a series of exceptions and conditions, one of which was a review of “tax calculations to ensure the accuracy of the declared income” of those taking part.

LHDN said it would carry out a review in the event a taxpayer in the programme had not truthfully declared past income. It said the programme does not cover matters brought up in court.

“These conditions that come with the SVDP are to prevent the occurrence of income reporting fraud by any taxpayer that could likely abuse this programme.

“In other words, the SVDP relies on the honesty of the taxpayers in making their declarations to us then,” it said.

LHDN said all SVDP cases are treated on a case by case basis and any issues related to a review can be referred to the office where tax files are handled.

The SVDP allows those who had deliberately or inadvertently under-declared their incomes to pay lower penalties compared to the usual 45% to 300%.

Those who took up the offer by Sept 30, 2019 were told they only had to pay 15% penalty on their undeclared income.

A total of RM7.7 billion was collected under the SVDP, which lasted from Nov 3, 2018, to Sept 30, 2019.

A total of 286,482 taxpayers, including 11,176 paying tax for the first time, took up the offer.