Deputy finance minister Lim Hui Ying said LHDN’s enforcement efforts were conducted in line with the existing tax laws.

“Legal action is taken against tax defaulters through civil suits, the issuance of summons, and the execution of (court) judgments,” she told the Dewan Rakyat when winding up the debate on the 2025 Auditor-General’s Report Series 3.

“Travel bans are also enforced to bar (defaulting) taxpayers from travelling overseas.”

Lim was responding to Abd Ghani Ahmad (PN-Jerlun), who asked whether LHDN had begun acting against “maha kaya” or “ultra wealthy” tax defaulters after the latest auditor-general’s report flagged the agency for an increase in uncollected revenue.

The report cited the finance ministry, the Prime Minister’s Department and the health ministry as the top three contributors to the outstanding amount, totalling RM43.48 billion. LHDN, under the finance ministry, was flagged for having the highest amount of accounts receivable at RM40.38 billion.

In response to the report’s findings, Lim said the tax agency had reduced its RM6.47 billion in accounts receivable through active tax collections and other actions.

She said the finance ministry had also directed departments and agencies to strengthen their revenue collection systems to reduce leakages and prevent further losses to the government.

Lim also said that the government had cut new borrowings from RM99.4 billion in 2022 to RM76.8 billion in 2024, adding that new loans were taken only for strategic development sectors such as infrastructure, education, health, and social protection.