In recent years, the probability of being selected for income tax review is getting higher, moreover, many big companies have been specially investigated by the Inland Revenue Board of Malaysia (IRBM) !

Under the income tax Self-Assessment System, the IRBM will randomly select 20% taxpayers each year for tax audit; this means that every taxpayer could be selected for a tax audit once in every five years.

The purpose of conducting a tax audit is to review a taxpayer's tax records and ensure that the taxpayer's income and taxes reported are true, accurate and in compliance with tax laws. However, it does not necessarily mean that a taxpayer who is selected for a tax audit has committed an offence.

In tax recovery, the IRBM mainly focus on recovering taxes from businesses and taxpayers who have additional income but have not reported to the IRBM, especially when the wealth and properties owned by the taxpayer do not match with the reported income.

Tax audit and special tax investigation
There are two types of tax recovery methods. One is the gentler tax audit, and the other is the more intensive Tax Investigation.