Tax Appeal

An appeal is an objection against the assessment issued by the LHDNM. An appeal can be made if:

1.     A taxpayer is not satisfied with the manner in which his income has been assessed.

2.     Personal reliefs have not been appropriately given.

3.     The taxpayer forgot to claim certain expenses or relief.

4.     There is an error in the assessment issued by LHDNM.

How to Appeal

A taxpayer who received a notice assessment and disagrees with it:

1.     Must appeal in writing, within 30 days from the date of the notice, to the LHDNM office which issued the notice of assessment. Where the appeal is to be forwarded to the Special Commissioners of Income Tax, prescribed Form Q which can also be downloaded from the LHDNM website and it is available at all LHDNM offices must be filled it.

2.     If for some reasonable grounds the taxpayer has been unable to appeal within the stipulated 30 day-period, he may submit an application for extension of time to appeal, on the prescribed Form N, to be forwarded for the decision of the Special Commissioners of Income Tax.

Tax to be paid notwithstanding any appeal

Taxpayer has to pay his tax liability first irrespective of any appeal.

Settling an Appeal

An appeal may be settled:

1.     By agreement between the taxpayer and the LHDNM; or

2.     By a decision of the Special Commissioners of Income Tax.

If LHDNM does not accede to the appeal, it will be forwarded to the Special Commissioners of Income tax as the taxpayer wishes to pursue the appeal. If a taxpayer is dissatisfied with the Special Commissioners’ decision, he may appeal further to the High Court and subsequently to the Court of Appeal.

Special Commissioners of Income Tax

The Special Commissioners of Income Tax is an independent tribunal which consists of panel members appointed by the Yang Di Pertuan Agong to handle tax appeals.