IRB official Datuk Abu Tariq Jamaluddin warns crypto traders to declare taxes or face compliance actions.
Malaysia’s Inland Revenue Board (IRB) has launched a special operation called “Ops Token” to address tax revenue losses from cryptocurrency trading.
According to The Malaysian Reserve, 38 personnel from the Royal Malaysia Police and CyberSecurity Malaysia (CSM) raided 10 locations within Klang Valley. The operation focused on companies that failed to report their crypto trading activities accurately to the federal agency. This initiative aligns with the government’s efforts to reduce tax revenue leakage and enhance tax administration in the country.
Malaysian Police Acquire Evidence of Tax Evasion
Authorities claim that several limited liability partnerships and corporate entities were established specifically for crypto trading. These entities are suspected of avoiding tax declarations. The IRB stated:
“Through the operation, cryptocurrency trading data stored in mobile devices and computers were found, and we successfully identified the value of digital assets being traded, which caused a very significant leakage of tax revenue.”
The IRB plans to analyze the data obtained during the operation to determine the value of the traded crypto assets and the profits generated. This will help the agency assess the extent of the tax leakage that went undeclared.
IRB Chief Warns Crypto Traders to Declare Taxes
IRB CEO Datuk Abu Tariq Jamaluddin emphasized that individuals involved in crypto trading in Malaysia are subject to the country’s income tax regulations. He urged crypto traders to promptly declare their crypto taxes at nearby IRB offices before the agency takes compliance action.
The IRB expects “Ops Token” to boost Malaysia’s tax revenue by increasing tax efficiency and reducing leakages. The agency also believes the operation will contribute to the sustainability of the country’s revenue collection.
Summary Review: Malaysia’s Inland Revenue Board’s “Ops Token” operation highlights the government’s commitment to addressing tax revenue losses from the growing cryptocurrency market. By targeting companies and individuals who have failed to declare their crypto trading activities, the IRB aims to improve tax compliance and ensure that tax obligations are met. IRB CEO Datuk Abu Tariq Jamaluddin’s warning serves as a clear message to crypto traders about the importance of adhering to tax regulations. This operation is expected to enhance Malaysia’s tax efficiency and contribute to the sustainability of the country’s revenue collection efforts.
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