![](\"https:\/\/www.cimb.com.my\/content\/dam\/cimb\/personal\/images\/malaysia\/life-goals\/save\/8-personal-income-tax-reliefs-you-can-claim-in-2023\/cimb-income-tax-relief-lhdn-banner.jpg\")
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What are the consequences of tax evasion\/underreporting?<\/strong><\/p>\n Who needs to file taxes?<\/span><\/p>\n Malaysia’s Income Tax Act 1967:<\/p>\n Tax residents are required to file taxes. If you reside in Malaysia for more than 182 days in a year, you are considered a tax resident.<\/p>\n Do you have to pay taxes if you file?<\/span><\/p>\n Filing taxes does not necessarily mean you have to pay taxes. You are only required to pay taxes if you have reached the government’s prescribed threshold of total income.<\/p>\n What are the consequences of delaying tax reporting?<\/span><\/p>\n Section 112(3) of the Income Tax Act 1967:<\/p>\n The tax authorities can impose a penalty of up to 300% of the tax owed for late filing.<\/p>\n What happens if incorrect tax information is provided?<\/span><\/p>\n Section 113(1) of the Income Tax Act 1967:<\/p>\n A maximum penalty of RM20,000 can be imposed on those who provide incorrect tax information, and the tax authorities can impose a penalty of up to 200% of the tax owed.<\/p>\n What are the consequences of tax evasion\/underreporting?<\/span><\/p>\n Section 114 of the Income Tax Act 1967:<\/p>\n intentional tax evasion can result in a maximum fine of RM20,000, a maximum prison term of 3 years, or both.<\/p>\n In addition, a special penalty of up to three times the amount of tax evaded for each charge may be imposed.<\/p>\n Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA):<\/p>\n Tax evasion money can also be defined as “black money.”<\/p>\n Once identified as black money, using tax evasion money is equivalent to money laundering.<\/p>\n If convicted, a person can be sentenced to imprisonment for up to 15 years and a fine of up to 5 times the amount of illegal proceeds or the instrument of crime, or RM5,000,000, whichever is higher.<\/p>\n<\/div>\n<\/div>\n<\/div>\n What are the consequences of tax evasion\/underreporting? Who needs to file taxes? Malaysia’s Income Tax Act 1967: Tax residents are required to file taxes. If you reside in Malaysia for more than 182 days in a year, you are considered a tax resident. Do you have to pay taxes if you file? Filing taxes does […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[1],"tags":[55,61,60,143,59,58,33,50,53,36,51,52,142,18,54,57,56,144,145,139,38,67,34,137,138,74,75,141,72,69,136],"gutentor_comment":0,"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/posts\/561"}],"collection":[{"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/comments?post=561"}],"version-history":[{"count":2,"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/posts\/561\/revisions"}],"predecessor-version":[{"id":563,"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/posts\/561\/revisions\/563"}],"wp:attachment":[{"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/media?parent=561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/categories?post=561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.limlawchambers.com\/zh\/wp-json\/wp\/v2\/tags?post=561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"