Lim Guan Eng Proposes Special Tribunal to Protect Taxpayers

KUALA LUMPUR, 6 August 2025 — Bagan MP Lim Guan Eng has called on the government to establish a Special Taxpayers Tribunal to protect individuals and small and medium enterprises (SMEs) from what he described as unreasonable and heavy-handed enforcement by the Inland Revenue Board (LHDN).

Lim highlighted this at Parliament that bureaucracy within government agencies, especially LHDN, has become a serious concern for many taxpayers who claim they are subjected to unfair tax assessments.

“Taxpayers have long complained that they are pressured by unreasonable tax evaluations issued by LHDN officers,” said Lim.

“While we appreciate LHDN’s efforts to increase national revenue, such actions must be balanced with fair and reasonable conduct. Bank accounts should not be frozen arbitrarily.”

He also questioned LHDN’s efficiency in processing tax refunds for overpayments and advance tax estimates, stating that many individuals and businesses have experienced excessive delays.

“Why is it that taxpayers are not receiving their refunds within the stipulated 30 days?

“Some companies have even reported waiting more than three years to get back their refunds.

“The government must reveal how much in tax overpayments remains unrefunded,” he added.

Lim further raised concerns over confusion surrounding transfer pricing enforcement, particularly new LHDN requirements compelling companies to impose interest charges on intercompany loans to subsidiaries — with the notional interest being treated as taxable income.

“Companies are now being taxed on hypothetical income they have not actually earned.

“This creates uncertainty and places unnecessary burdens, especially on SMEs,” he added.