Tax arrears: Over 180,000 people barred from traveling overseas

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Tax arrears: Over 180,000 people barred from traveling overseas

KUALA LUMPUR: A total of 180,216 individuals have been barred from traveling overseas by the Inland Revenue Board (LHDN) for failing to pay tax arrears totaling RM7.93bil.

The travel restriction was imposed even on those with tax arrears of RM100.

According to a Berita Harian report, the individual with the highest tax arrears owed RM1.884bil.

In 2022, the travel ban was imposed on a total of 197,190 individuals including directors of companies. The amount of arrears owed was RM12.41bil.

LHDN chief executive officer’s office director Ranjeet Kaur said action was taken against Malaysians, foreigners as well as directors with a shareholding of over 20% who failed to pay their income, property gains and company taxes.

She said the enforcement action was taken to increase voluntary tax payment compliance and not meant to punish taxpayers.

“We took the decision to impose the restriction to ensure that all individuals fulfill their responsibility and to restrict them from leaving the country or leaving Malaysia without paying their taxes,” she said.

She said taxpayers who have been penalized have been notified of the action through their last address as per LHDN’s records.

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