The Inland Revenue Board (LHDN) has settled a substantial amount of tax refunds, totaling RM14.55 billion, across 3.47 million cases as of November 30, according to a report in the Dewan Negara. This marks a significant 17.5% increase from the previous year's refund amount of RM12.39 billion, which covered 2.71 million cases. The report highlights the LHDN's proactive approach to tax refund management, emphasizing the importance of timely and efficient distribution of government-allocated refund provisions. By prioritizing refund cases based on the age of arrears, the LHDN aims to streamline the process and ensure fairness. The strategy involves paying tax refunds first and conducting audits later, with a special focus on older refund arrears. Additionally, the LHDN has shown a commitment to settling refund arrears for individual taxpayers and considering the financial constraints of micro, small, and medium enterprises (MSMEs) and companies. The Dewan Negara's recent passing of the Finance Bill 2025 further underscores the importance of tax-related amendments, including changes to five key acts: the Income Tax Act 1967, the Real Property Gains Tax Act 1976, the Stamp Act 1949, the Labuan Business Activity Tax Act 1990, and the Petroleum (Income Tax) Act 1967. This comprehensive approach to tax management and policy development is crucial for maintaining a fair and efficient tax system, ensuring that both the government and taxpayers benefit from a well-structured financial framework.
