Following the passing of the Finance Bill 2021, a new provision will be included in the Income Tax Act, 1967. This will extend the Inland Revenue Board’s powers to access bank account information and require financial institutions to furnish the information for the purpose of garnishee order applications, applicable where civil proceedings have been initiated, without disclosure to the bank account holders.

According to Soh Lian Seng, Head of Tax Dispute Resolution at KPMG in Malaysia, with this provision every taxpayer transaction is under open scrutiny and we should consider to what extent this may conflict with the Personal Data Protection Act 2010.

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