(Tax Update) : Special Voluntary Disclosure Programme 2.0 guidelines

IRB Public Annoucement

Based on IRB website, 22 August 2023, The Inland Revenue Board of Malaysia (IRB) may now conduct tax audits/investigations on the year of assessment the voluntary disclosure is made.

If the voluntary disclosure is made on non-transfer pricing matters only and the IRBM finds there is a risk of transfer pricing issues, a tax audit/investigation can be performed.

Conversely, if the taxpayer makes a voluntary disclosure of transfer pricing matters only, a tax audit/investigation can be performed on non-transfer pricing issues.

In the previous Special Voluntary Disclosure Programme 2.0 guidelines, a tax audit/investigation can only be carried out if the taxpayer fails to make the voluntary disclosure payment within the stipulated period.

In Taxpayers' Words

If you only report non-transfer pricing problems but IRB finds transfer pricing issues, IRB can still investigate those transfer pricing issues.

Similarly, if you only report transfer pricing problems, IRB can look into other unrelated issues.

KTP Thoughts

The implication for taxpayers is that even if they voluntarily disclose issues in one area, they could still be investigated for problems in other areas they didn't disclose.

This means taxpayers should be thorough and transparent in all areas to reduce the risk of audits or investigations.

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