List of income tax offences, fines and penalties

The law imposes penalties (in form of fines and imprisonment) to ensure that all taxpayers pay their taxes in full and on time. Learn what are the offences and penalties, and do your best to avoid them.

The penalties for income tax offences as stipulated  in the Income Tax Act 1967 are listed below.

Type of offences	Provision under ITA 1967	Amount of fine (RM)
Failure (without reasonable excuse) to furnish an Income Tax Return Form	112(1)	200 to 2,000 or imprisonment or both
Failure (without reasonable excuse) to give notice of chargeability to tax	112(1)	200 to 2,000 or imprisonment or both
Make an incorrect tax return by omitting or understating any income	113(1)(a)	1,000 to 10,000 and 200% of tax undercharged
Give any incorrect information in matters affecting the tax liability of a taxpayer or any other person	113(1)(b)	1,000 to 10,000 and 200% of tax undercharged
Willfully and with intent to evade or assist any other person to evade tax	114(1)	1,000 to 20,000 or imprisonment or both and 300% of tax undercharged
Assist or advise (without reasonable care) others to under declare their income	114(1A)	2,000 to 20,000 or imprisonment or both
Attempt to leave the country without payment of tax	115(1)	200 to 2,000 or imprisonment or both
Obstruct any authorized officer of IRBM in carrying out his duties	116	1,000 to 10,000 or imprisonment or both
Fails (without reasonable excuse) to comply with an order to keep proper records and documentation	119A	300 to 10,000 or imprisonment or both
Fails (without reasonable excuse) to comply with a notice asking for certain information as required by IRBM	120(1)	200 to 2,000 or imprisonment or both
Fails (without reasonable excuse) to give notice on changes of address within 3 months	120(1)	200 to 2,000 or imprisonment or both
Pay taxes after 30th April (for non-business income) Pay taxes after 30th June (for business income)	103(3) 103(4)	a. 10% increment from the tax payable, and b. Additional 5% increment on the balance of (a) if payment is not made after 60 days from the final date
Pay installments after 30 days of the date set (for business income)	107B(3)	10% on installment due
Actual tax 30% higher than the revised estimate of tax (for business income)	107B(4)	10% of the difference in actual tax balances and estimated tax made

Source: Inland Revenue Board (IRB) / Lembaga Hasil Dalam Negeri (LHDN) Malaysia.