AG's Report 2015: Over 100,000 individuals barred from leaving the country due to tax arrears

PETALING JAYA: The 2015 Auditor-General's report (Series 2) revealed that 128,165 individuals have been barred from leaving the country as of June for failing to settle their taxes.
The report also stated that the Inland Revenue Board (LHDN) director-general had issued the restrictions to the individuals on their travel abroad certificates with tax arrears involving RM3.4 billion.
Under Section 104 of the Income Tax Act 1967 and Section 22 of the Real Property Gains Tax Act 1976, tax defaulters are required to settle their full amount of taxes before their travel restrictions can be lifted.
If the defaulters are unable to settle the full amount, they may still be able to apply for a provisional or temporary release that allows the individual to travel abroad following "an approved limited release period".
Among the recommendations for the LHDN by the Auditor-General Tan Sri Ambrin Buang was to update the process of blacklisted tax defaulters from travelling abroad and the overall improvement of its system for continous checking and monitoring of all barred taxpayers.
He also recomended that the enforcement on temporary release processes and civil suits should be implemented consistently in accordance with the regulations.
In addition assertive action should be taken against employers who failed to settle the taxes of their workers upon leaving Malaysia.