KUALA LUMPUR: Lim Guan Eng (PH-Bagan) has proposed the formation of a special taxpayer tribunal to address what he describes as growing dissatisfaction and complaints from individuals and small and medium-sized enterprises (SMEs) over unfair treatment by the Inland Revenue Board (LHDN).
When debating the 13th Malaysia Plan, Lim said that while LHDN’s efforts to boost government revenue were commendable, they must also be balanced, with fair and reasonable enforcement.
“I propose the formation of a special taxpayer tribunal to protect individuals and SMEs from feeling that they are being treated unreasonably, victimised or subjected to double standards in enforcement,” he told the Dewan Rakyat.
Lim, a former finance minister, said taxpayers often complained that they were being pressured by unreasonable tax assessments by LHDN.
“Even though LHDN’s efforts to increase national revenue are appreciated, these must be balanced with reasonable action so that bank accounts are not frozen arbitrarily,” he said.
Lim also highlighted delays in tax refunds. He said this was a recurring issue, particularly for individuals or companies that have overpaid or made advance estimated tax payments.
“Why are they not getting their refunds within the stipulated 30-day period? Some companies have complained that they had to wait more than three years to get their tax refunds. What is the total amount of these overdue refunds?”
He also raised concerns about confusing enforcement practices, such as those related to transfer pricing.
“One example is that companies are now required by LHDN to impose interest on funds transferred to subsidiaries, which is then treated as income and taxed accordingly,” he said.
Source: https://www.freemalaysiatoday.com/category/nation/2025/08/06/guan-eng-moots-taxpayer-tribunal-to-protect-individuals-smes