http://www.ctim.org.my/PDF/Technical/Tax_Audit_Framework_(Amendment_2009).pdf
10. OFFENCES AND PENALTIES
10.1 If it is discovered after the commencement an audit that there has been an understatement or omission of income, a penalty will be imposed under subsection 113(2) or paragraph 44B(6)(b)* of the ITA in which the penalty rate equal to the amount of tax undercharged (100%) accordingly. However, the DGIR in exercising his discretionary powers may consider a lower penalty of 45% to be imposed for the first offence.
10.2 The concessionary penalty rates may be imposed in cases where the taxpayer makes a voluntary disclosure. As such the taxpayer is encouraged to make a voluntary disclosure regarding the omitted income
before the commencement of an audit. This disclosure must be made in writing to the relevant Branch Director of IRBM.
10.3 Where taxpayer who furnishes a return form on or before the due date and the Director General has made an assessment for that year of assessment under section 91, ITA 1967 subsequently makes a voluntary
disclosure after the due date but not later than 6 months from the due date, the penalty rates are as follows:
Table I
10.4 The concessionary penalty rates for voluntary disclosure other than cases
mentioned in paragraph 10.3 are as follows:
Table II
10.5 For each repeated offence, the rate of penalty shall be increased by 10%
as compared to the last penalty rate imposed for the previous offence but
limited to a sum not exceeding 100% of the amount of tax undercharged.
