LHDN raises RM7.7 billion in additional tax assessments after auditing more than 408,000 cases

Traders Union
All News
Regulators
LHDN finds RM7.7b in additional tax

Highlights

LHDN raised RM7.7 billion in additional tax assessments after auditing more than 408,000 cases, focusing on high-risk sectors such as high-net-worth individuals, tobacco, alcohol and vape.
LHDN is expanding its use of AI, including HAFY-TaxAssist, IRIM, behavioural analytics and the Next-Best Action Predictive Model, to improve operational efficiency and tax compliance.
The MyInvois Advanced Analytics Anomaly Detection model identified more than 7,700 potential tax risk cases requiring audit and investigation, based on the latest e-Invoice data.

This article was translated from the original. Read the original version by our correspondent here.

Audits focus on high-risk sectors

As reported by The Edge Malaysia, LHDN chief executive officer Datuk Dr Abu Tariq Jamaluddin said the audit and investigation measures focused on several high-risk areas, including high-net-worth individuals, the tobacco, alcohol and vape sectors, and aggressive tax planning activities.

He said LHDN is also closely monitoring transfer pricing issues, e-Invoice data and Malaysian taxpayers’ overseas account information to ensure compliance with the country’s tax laws. In his speech at LHDN’s Innovation and Integrity Day 2026 launch in Cyberjaya on Tuesday, he stressed that LHDN continues to prioritise voluntary compliance, but will take firm action without fear or favour against those who deliberately evade their tax responsibilities.

Strengthening the use of AI and governance

LHDN is also stepping up its use of artificial intelligence (AI) to improve operational efficiency, strengthen tax compliance and enhance services for taxpayers. Applications developed or currently in development include HAFY-TaxAssist, a Conversational AI-powered chatbot that enables taxpayers to access tax information and guidance around the clock.

In addition, the Instrument Recognition and Intelligence Model (IRIM) was developed to identify various types of documents or instruments and determine the appropriate stamp duty rates based on their contents. LHDN also uses behavioural analytics to assess the patterns and behaviours of different taxpayer groups, enabling more targeted monitoring and compliance strategies.

According to Abu Tariq, the model helps identify high-risk taxpayer groups by analysing information stored in LHDN’s data warehouse. Another application, the Next-Best Action Predictive Model, helps LHDN determine the most appropriate tax collection action based on the financial profiles, compliance records and behavioural patterns of taxpayers with outstanding tax liabilities.

The MyInvois Advanced Analytics Anomaly Detection model, which uses e-Invoice data, has identified more than 7,700 potential tax risk cases requiring audit and investigation. Abu Tariq said the use of AI will enable LHDN to move from conventional compliance approaches to more proactive, targeted and data-driven methods.

Separately, he said LHDN has also launched the LHDN Integrity Document as part of its ongoing commitment to strengthening organisational accountability and governance, in line with the LHDNM Anti-Corruption Strategy (SeAL) 2026-2028. The document will serve as the main reference on matters relating to integrity and must be put into practice, leaving no room for abuse of power, conflicts of interest or any form of misconduct.

In our previous article on the development of a sovereign AI cloud, we explained the government’s efforts to build a controlled cloud environment to protect official documents and sensitive information from the security risks of public cloud services and exposure to foreign laws. We also discussed the role of relevant agencies in implementing the initiative and how strengthening digital infrastructure, including expanding access to high-quality internet, supports Malaysia’s digital sovereignty agenda.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.