Nearly 15,000 Malaysian tax residents have been identified as having overseas financial accounts worth more than RM10 billion that were not declared in their tax filings, according to Lembaga Hasil Dalam Negeri Malaysia (LHDN).
The discovery was made through international exchanges of financial account information involving more than 100 countries.
Accounts identified through global information sharing
According to the statement, LHDN said it works closely with tax authorities worldwide to combat cross border tax evasion and strengthen compliance.
Through these exchanges, the agency identified 14,858 Malaysian tax residents who hold overseas financial accounts with significant balances but did not submit income declarations via their Income Tax Return Forms.
The total balance across these accounts exceeds RM10 billion.
Funds linked to multiple offshore financial centres
LHDN says the undeclared accounts are spread across several jurisdictions commonly associated with international finance.
These include Luxembourg, Hong Kong, Guernsey, the Cayman Islands, the Bahamas, and Bermuda.
LHDN did not specify how long the accounts have remained undeclared or whether the funds were generated locally or overseas.
Reminder letters sent before enforcement action
Instead of moving straight to enforcement, LHDN said it has begun issuing reminder notices to affected individuals as part of a voluntary compliance approach.
This allows taxpayers to review their records and declare any income that should be taxed in Malaysia before penalties or legal action are imposed.
LHDN described the move as a nudging strategy aimed at encouraging taxpayers to come forward on their own.
Taxpayers urged to declare income voluntarily
The tax authority reminded Malaysian tax residents that income derived from overseas sources may still be taxable in Malaysia, depending on its nature and the applicable tax laws.
Those with unreported income linked to overseas accounts are urged to voluntarily disclose the information as soon as possible to avoid penalties and prosecution under the Income Tax Act 1967.
LHDN said it remains committed to administering the tax system transparently and in line with international standards.
The agency added that cooperation between authorities and taxpayers is key to strengthening tax governance and supporting national development.
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