3 Ways LHDN Can Trace Your ‘Undeclared’ Income

Lembaga Hasil Dalam Negeri (LHDN), or Inland Revenue Board of Malaysia (IRBM), is a leading tax administrator responsible for collecting revenue for the Ministry of Finance. Aside from that, LHDN also aims to improve voluntary compliance, implement a taxation system, increase operational effectiveness and enhance a competent workforce. 

As working adults, we work closely with the revenue company to manage our pay, commissions and other money-related matters. Maybe some of you might not know, but taxpayers have to declare all income to IRBM and are responsible to:

  • Register Income Tax Number / Update Information
  • Declare Annual Income
  • Pay Income Tax

However, some might not declare their income officially to the revenue company. So, have you ever wondered if they can ever know your undeclared income?

LHDN can trace your undeclared income with these steps

An accountant, @tukangkirakira, on TikTok shared three ways the agency can trace your undeclared income.

1) When you’re dealing with your company

  • When the company you’re working with pays you, they’ll provide a payment voucher.
  • This payment voucher contains some important information like your name and IC number.
  • Therefore, LHDN can look up your income by filling in these details in their system.

2) Commission

  • Companies have to fill in a form named CP58 once they give you a commission.
Picture: QNE Software
  • Afterwards, the form needs to be handed to LHDN.
  • Did you know? Many workers are unaware that the commissions they received have been declared by LHDN.

3) Social media

  • These days, everyone shares almost everything on the internet.
  • Even though it seems like private and confidential information, some people share their income on social media.
  • Since technology has evolved and modernised, it’s accessible for LHDN to declare your income through your TikTok, Twitter or other postings on your social media accounts.

Sources: TikTok @tukangkirakira, LHDN (Coorporate Culture), LHDN (FAQ), Malaya Corporate Group

Adib Mohd

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