Malaysia

E-Invoice audits uncover RM1.4 billion in previously unreported income

Thousand of taxpayers come forward to regularise their filings after enforcement checks under the e-Invoice system revealed widespread mismatches between spending capacity and declared income

Updated 5 months ago · Published on 03 Feb 2026 3:38PM

E-Invoice audits uncover RM1.4 billion in previously unreported income
A total of 17,188 taxpayers previously found non-compliant in submitting their income tax return forms have come forward to file them - February 3, 2026

THE Inland Revenue Board has detected RM1.4 billion in previously unreported income following audit checks and enforcement measures carried out under the e-Invoice system, which came into force on Aug 1, 2024.

In a statement issued on Tuesday, Feb 3, the board said the findings emerged from data-driven audits that identified more than 500,000 potential cases involving individuals or entities with high financial capacity but no corresponding tax records, including undeclared income.

“The board has conducted audit checks and issued reminders to encourage taxpayers to voluntarily declare any non-compliance or errors in their tax information.

“A total of 17,188 taxpayers previously found non-compliant in submitting their income tax return forms have come forward to file them, reporting RM1.4bil in income for the past assessment year, which contributed RM290mil to tax revenue,” the board said.

The Inland Revenue Board added that adoption of the e-Invoice system has accelerated since its launch, with 184,325 taxpayers having submitted a total of 979 million e-invoices to date.

The response, it said, reflects strong acceptance of e-invoicing among taxpayers, including micro, small and medium-sized enterprises, as part of broader efforts to digitalise business operations and maintain systematic transaction records for both sellers and buyers.

“With a combination of data-driven approaches and the latest technology, the board will continue to ensure that taxes are collected fairly and equitably, while detecting non-compliance,” the statement said.

The board also reminded all taxpayers to ensure that the information they submit is accurate, complete and up to date, warning that failure to do so could result in heavier penalties and legal action under the Income Tax Act 1967. - February 3, 2026

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