The Inland Revenue Board (IRB) has uncovered RM1.4 billion in previously undeclared income through reviews conducted under its e-Invoice system, which was introduced six months ago.
In a statement on Tuesday, the tax authority said it identified more than 500,000 cases of potential underreporting, where taxpayers’ declared income did not align with their financial capacity. As a result, reminder notices were issued to encourage voluntary disclosures.
Following these efforts, 17,188 taxpayers submitted backdated income declarations, generating RM290 million in additional tax revenue.
Since the e-Invoice system was rolled out on Aug 1, 2024, a total of 184,325 taxpayers have issued 979 million e-invoices, reflecting strong uptake, including among micro, small and medium enterprises.
The IRB said the system supports the digitisation of business operations and ensures transactions are properly recorded. It added that the agency will continue to enforce tax compliance fairly and efficiently by leveraging data-driven and digital tools to detect non-compliance.
Taxpayers were reminded to keep their tax records accurate and up to date to avoid penalties or legal action under the Income Tax Act 1967.
