Crowe Tax Audits and Investigations

Tax Audits & Investigations

Take the proactive approach in managing your tax audit and investigation risks 

Preparation is the key to success. Let our tax experts help you navigate the complexities of a tax audit or tax investigation. 

Managing tax audit and investigation risks proactively 

Malaysia operates a self assessment system where tax audits are an essential tool used by the Inland Revenue Board (“IRB”) to ensure taxpayers are in compliance with the relevant tax laws and regulations. Under the self assessment regime, any non-compliance will potentially attract hefty penalties of up to 300% of the tax under-charged. As part of their enforcement actions, the IRB has been actively conducting tax audits, tax investigations as well as Capital Statement Reviews in recent years. In addition, the IRB has access to various sources of information on taxpayers due to the changed global tax landscape arising from the BEPS initiatives and the Automatic Exchange of Information (AEOI) and Common Reporting Standards where information is being shared amongst tax authorities and government agencies to enhance transparency and compliance. 

Hence, it is important to ensure that your organisation or you as an individual taxpayer, have managed your tax obligations appropriately and have put in place relevant supporting documents to defend the position taken in the event of a tax audit or tax investigation. To this end, preventive measures can be undertaken for example, by performing a health check or preparing a capital statement to assess your tax compliance level. Early detection will help towards minimising tax exposures.

If you are facing a tax audit or tax investigation, you should consider what are the strategies and defensive positions that you should take in mitigating or minimising your tax exposure. Appointing a tax professional to assist you in handling a tax audit or tax investigation will help you to manage the matter in a more strategic and effective manner.

We have a dedicated team with vast experience in handling tax audit and investigation cases. We come with proven track records of being able to achieve the desired outcomes for our clients in tax audits or tax investigations.

We would be able to assist you in the following areas:-

Pre-tax audit / investigation
    Perform a health check to detect pitfalls or gaps and formulate solutions to manage the risk
    Prepare a capital statement to understand your tax profile and take necessary precautionary steps
    Review of information / documents, and assess the tax risk prior to submission to the IRB
During tax audit / investigation
  • Advise on the matters involved in handling a tax audit or investigation 
  • Discuss and present the justifications to the IRB on the tax position adopted 
  • Negotiate with the IRB to reach an amicable settlement 
Post tax audit / investigation
  • Gather and evaluate critical feedback upon completion of a tax audit or investigation
  • Plan for the way forward and formulate appropriate corrective action with the objective to minimize future tax liabilities
  • Revise tax computations based on the tax audit adjustments
Embarking on the journey for settling a tax audit or investigation can be complex and stressful. With strategies to consider, procedures to follow, write-ups to complete, documents to provide, and presentations and decisions to be made at every turn, making the right moves at every step of the way will be a deciding factor in whether an amicable resolution could be reached ultimately. Sometimes, a tax audit may cause a drain on the taxpayer’s cashflow if it is not being managed diligently.

Hence, we are here to work together with you throughout the journey. Get in touch with us today!

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Our experienced tax professionals can help you tackle your most pressing tax challenges. Contact our tax audits and investigations specialist today.
Wong Man Yee
Man Yee Wong
Location: Kuala Lumpur