The Inland Revenue Board (IRB) or Lembaga Hasil Dalam Negeri (LHDN) of Malaysia said today that 6.2% or RM486.29 million in tax refunds last year failed to be returned to taxpayers due to a mismatch of information provided or closed or inactive bank accounts.
In a statement today, it said it places great importance on the processing of tax refunds to ensure taxpayers who are eligible for a refund receive them within a stipulated time frame.
"However, failure in updating personal information and bank account details results in the failure to complete the tax refund process," it said.
In terms of mismatch of information, it said cheques or vouchers were not delivered to taxpayers due to differences in taxpayers' actual address with the one they had registered in the LHDN's database.
There were also incidents of mismatch of bank information, account number and identification number or company registration number between the LHDN's database and that registered at the bank.
"Therefore, taxpayers are advised to update their latest personal and banking information in the annual Income Tax Return Form (ITRF) in a move to assist LHDN Malaysia in minimizing the failure rate of processing tax refunds.
In addition, they also can use the e-Kemaskini system or the Feedback Form which can be accessed online at any time through www.hasil.gov.my to update their personal and banking information," the LHDN said.
Among the information it said is needed to expedite the tax refund process are personal identification number, bank account number, correspondence address, telephone number, e-mail address and company registration number (for taxpayers in the company/organisation category).
"Starting Jan 1, 2020, income tax refunds will be fully made using the electronic method of e-payment which is in line with the government's aspiration to preserve the environment by promoting paperless Go Green campaign," it added