PAC Recommends IRB To Report On E-Invoicing Status, Making It Easier For Taxpayers

KUALA LUMPUR, Feb 27 (Bernama) -- The Public Accounts Committee (PAC) has recommended that the Inland Revenue Board (IRB) report on the implementation status of e-invoicing to make it easier for taxpayers while improving tax collection.

In a statement today, PAC chairman Datuk Mas Ermieyati Samsudin said the committee also urged the IRB to improve the tax assessment process to reduce appeal cases and ensure that laws are tightened to curb leakage and fraud in tax payments. 

“The IRB needs to continue compliance and enforcement actions to ensure that the assessments raised can be collected and do not become account receivables (ABT), and thus increase government revenue,” she said. 

Additionally, Mas Ermieyati said the IRB must increase its programmes on tax law compliance for all Malaysians, especially companies and individuals that generate income from the digital economy. 

She said the PAC commenced proceedings regarding the IRB’s ABT on Nov 5, 2024, based on audit findings in the Auditor General's Report (LKAN) 3/2024 - Federal Government Financial Statements for the Year 2023. 

The report found that the IRB’s ABT in 2023 amounted to RM34.59 billion compared to RM40.39 billion in 2022, representing a decrease of RM5.79 billion (14.3 per cent). 

“The decrease in IRB’s ABT is due to write-offs and under-assessments raised in 2023,” she said. 

The PAC held three proceedings on the issue -- on Nov 5, 2024, Nov 26, 2024, and Feb 4, 2025, said Mas Ermieyati.

In the proceedings, she said the IRB reported that it had improved the governance process for underassessment cases exceeding RM10 million to be reviewed by the IRB audit committee. 

She said that to strengthen the collection process, the IRB uses the Revenue Management System (ReMS) 2.0, a system developed internally that allows officers to detect cases of non-compliance in the collection process. 

-- BERNAMA