The Inland Revenue Board of Malaysia ("IRB") actively
conducts tax investigations or "raids" on taxpayers. The
main purpose of these raids is to deter tax evasion and/or
aggressive tax planning with the ultimate aim of enhancing tax
compliance. It is not uncommon for the IRB to have obtained a
reasonable amount of information – either through its own
global intelligence or through informers – prior to
conducting a dawn raid on a taxpayer.
What is a Dawn Raid?
Tax investigations that were carried out without prior notice to
the taxpayers are commonly known as "dawn raids". At the
break of dawn, the IRB's officers ("officers")
simultaneously arrive at the taxpayer's business premises,
residences, tax agent's premises, third parties' and other
relevant premises where necessary.
