THE MCA has called on the Inland Revenue Board (LHDN) to increase transparency by publishing detailed guidelines about its audit processes and selection criteria.
This, said the party would help taxpayers understand how and why they might be audited.
"Clear communication is also key, while regular updates and informative materials can help reduce concerns and clarify the auditing process.
"Engaging with the public through forums or workshops would allow taxpayers to share their concerns and ask questions, fostering a sense of community and building trust.
"Additionally, creating a feedback system for those who have undergone audits can provide LHDN with useful insights for improvement," said party vice-president Datuk IR Lawrence Low.
Low, who is also the MCA Economic & SMEs Affairs Committee Chairman said recent comments from doctors about feeling unfairly targeted during audits have raised concerns about how fair and transparent these practices are.
"Some have suggested that certain auditors might receive bonuses for finding unpaid taxes, which they see as an aggressive approach.
"While LHDN has stated that this is not the case, urging taxpayers with the phrase, “Do not be afraid. Know your rights and responsibilities in respect of a tax audit and investigation,” the worries expressed by medical professionals and others are not just about fear; they highlight genuine concerns about the integrity of the tax system," he said.
Low said regular reviews of audit outcomes should be carried out to check for fairness and consistency, enabling LHDN to adjust practices as needed.
"If the public continues to feel unfairly targeted by LHDN's practices, this could lead to negative perceptions and increase public unease.
"LHDN needs to take steps to build trust and provide reassurance. Public confidence relies on transparency and consistent behaviour. When LHDN’s statements are unclear or seem dismissive, it can make taxpayers more anxious," he said.
He said that initiatives to promote tax literacy will empower taxpayers by educating them about their rights and responsibilities, helping them navigate the audit process and easing their worries.
"By adopting these strategies, LHDN can strengthen public confidence and build a more positive relationship with taxpayers.
"They need to operate with fair practices and ethical standards to help reduce perceptions of bias or overly aggressive audits," he added. - September 22, 2024
