The Lembaga Hasil Dalam Negeri (LHDN) Malaysia needs to obtain a court order to obtain taxpayer information from the bank.
According to the information issued by the Lembaga Hasil Dalam Negeri (LHDN), the LHDN is not free to obtain taxpayers’ bank information. To obtain taxpayer’s bank information, certain judicial procedures must be passed, which is to obtain court orders. The LHDN can only execute the procedure for obtaining taxpayers’ bank information in cases involving civil litigation.
The government passed a new 106A clause in the Income Tax Act of 1967, allowing the LHDN to obtain taxpayer information from the bank without the taxpayer’s permission, and the bank cannot disclose to taxpayers information about obtaining bank information.
Many people are worried about this. The LHDN stated that this measure is only aimed at tax evasion and tax avoidance. For taxpayers who have fulfilled their tax obligations, they do not need to be worried about the new provisions.
The current regulations are based on the Personal Data Protection Act (PDPA) of 2010, that is, banks need to obtain the taxpayer’s consent before they can provide the party’s bank information to the LHDN. Taxpayers need to sign a consent or declaration (Sijil Perakuan) before the bank can provide information to the relevant authorities.
