Can LHDN access your bank account?

Can LHDN direct access to your bank account?

Yes. under the new provision of Section 106A Income Tax Act (ITA) 1967 which was passed through the Finance Bill 2021 on 15.12.2021.

Under this new provision, LHDN will have the right to request for taxpayer's bank account details for review and investigation without informing the taxpayer.

Under what circumstance your bank information is accessible by LHDN?

The new provision does not give it absolute power to simply access taxpayers' bank account information.

It is only limited to cases involving garnishee orders allowed by the Court.

LHDN is required to go through a prescribed process of judgment and is only limited to cases that have already gone through a civil proceeding before.

What is garnishee order?

The garnishee proceedings are the process of enforcing a monetary judgment by seizing or withholding debts due to a specific party.

LHDN has the right to do so because of the existence of unpaid tax arrears by the taxpayer.

Source:

https://phl.hasil.gov.my/pdf/pdfam/KM_HASiL_18122021_HAD_AKSES_AKAUN_BANK.pdf

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taxKtp KtpFebruary 28, 2022access bank account, Garnishee order