A Basic Understanding Of Our Malaysian Tax Audits ( Part 2)

What are the criteria to be selected for a Tax Audit?

Well, the selection process could involve any or all of the following:

  • HQ instruction
  • policy decisions
  • computerized selection
  • manual selection’
  • informer based selection

Besides the above reasons, other factors that can trigger it include the following:

  • industry analysis
  • informer or information based
  • taxpayer record and background
  • specific issues (e.g. transfer pricing)
  • inconsistent and conflicting expenditure in accounts
  • repayment and loss cases
  • media reports
  • inter-governmental agencies/information

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