Kuala Lumpur: The Public Accounts Committee (PAC) has recommended that the Inland Revenue Board (IRB) report on the implementation status of e-invoicing to make it easier for taxpayers while improving tax collection. In a statement today, PAC chairman Datuk Mas Ermieyati Samsudin said the committee also urged the IRB to improve the tax assessment process to reduce appeal cases and ensure that laws are tightened to curb leakage and fraud in tax payments.

According to BERNAMA News Agency, Mas Ermieyati emphasized that the IRB needs to continue compliance and enforcement actions to ensure that the assessments raised can be collected and do not become account receivables (ABT), thereby increasing government revenue. Additionally, she stated that the IRB must increase its programmes on tax law compliance for all Malaysians, especially targeting companies and individuals generating income from the digital economy.

The PAC commenced proceedings regarding the IRB’s ABT on Nov 5, 2024, based on audit findings in the Auditor General’s Report (LKAN) 3/2024 – Federal Government Financial Statements for the Year 2023. The report found that the IRB’s ABT in 2023 amounted to RM34.59 billion compared to RM40.39 billion in 2022, representing a decrease of RM5.79 billion (14.3 per cent).

Mas Ermieyati highlighted that the decrease in IRB’s ABT is due to write-offs and under-assessments raised in 2023. The PAC held three proceedings on the issue – on Nov 5, 2024, Nov 26, 2024, and Feb 4, 2025.

During the proceedings, the IRB reported improvements in the governance process for underassessment cases exceeding RM10 million, which are now reviewed by the IRB audit committee. To strengthen the collection process, the IRB has implemented the Revenue Management System (ReMS) 2.0, an internally developed system that enables officers to detect cases of non-compliance in the collection process.