Let’s be honest — no one wants a surprise call, email, or audit from LHDN.
Every year, especially towards December, Malaysians suddenly panic:
“Eh, boleh claim tak ni?”
“Kalau beli ni, jimat cukai ke?”
“Selamat ke claim semua ni?”
💥 The truth?
Trying too hard to “beat the system” is often what gets people flagged.
After listening to real tax experts and audit insiders, here are the BIGGEST red flags that silently attract LHDN’s attention — and how to avoid them.
🚩 Red Flag #1: Spending Just for Tax Relief (Bad Idea!)
Many people rush to spend money just because:
“Eh ada tax relief!”
Example:
You spend RM1,000 just to get RM200 tax savings
You don’t even use the item (gym, sports gear, etc.)
❌ That’s not tax planning — that’s bad money management.
👉 Smart rule:
Only spend on things you already need or will actually use.
If you won’t use it, don’t buy it just for tax relief.
🚩 Red Flag #2: Claiming Everything (Yes, EVERYTHING 😬)
If you claim every single tax relief item, year after year:
Lifestyle
Sports
Education
Medical
Insurance
PRS
SSPN
Internet
Gadgets
📌 That doesn’t make you smart. It makes you visible.
LHDN assumes honesty — until numbers look “too perfect”.
👉 If you have receipts, fine.
👉 If you don’t? That’s where audits begin.
🚩 Red Flag #3: No Receipts, But Still Claiming
One of the most common mistakes:
“Saya ingat ada beli… tapi resit entah ke mana.”
❗ When audited:
No receipt = Penalty
Excuses don’t work
📱 Pro tip:
Scan all receipts and save them in:
Google Drive
Phone
Cloud storage
LHDN now prefers soft copies, not physical receipts.
🚩 Red Flag #4: Cash Businesses with “Strange” Numbers
Even cash businesses are not invisible anymore.
Example:
Similar businesses show 30% gross profit
Yours shows 10%
📊 LHDN uses industry benchmarks.
If your numbers don’t make sense — you get questioned.
👉 No invoices + too much cash = major suspicion.
🚩 Red Flag #5: Closing Accounts at the “Wrong Time”
Opening or closing accounts right before year-end looks suspicious.
📌 Especially if:
Money goes in
Money comes out
Then goes back in just to “claim”
LHDN looks at net deposits, not balances.
🚩 Red Flag #6: Always Expecting Tax Refunds
Here’s something many don’t know:
Refunds can take YEARS
Yes, even 3–4 years
There are real cases where businesses waited 4 years for refunds.
👉 Better strategy:
Plan your taxes properly so you don’t overpay in the first place.
🧠 Smart Tax Planning = Long-Term Thinking
Good tax planning is NOT about:
❌ Chasing every relief
❌ Spending blindly
❌ Copying influencers
It IS about:
✅ Planning early (January, not December)
✅ Spending wisely
✅ Keeping documents
✅ Investing, not wasting
💡 One Smart Move Most Malaysians Miss: Let Your Money Grow
Instead of spending RM1,000 just to save RM200 in tax…
👉 Why not grow that RM1,000 instead?
That’s exactly why I use Versa.
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How to Get RM10:
1️⃣ Download Versa:
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💰 Your money works for you — not just for tax relief.
🔥 Final Thought
You can’t avoid taxes — but you can avoid unnecessary trouble.
Plan smart. Spend wisely. Invest early.
And if this article helped you 👉 share it with someone who panics every December 😄
🔥
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