Tax audit sounds scary?
Actually, it’s just LHDN doing their job. The key is: know the process, act fast, keep records.

Here are the key stages from our experiences :

Stage 1: Notification
Tax Audit Notification Letter issued. Must respond within 14 days.

Stage 2: Preparation
Deal directly with LHDN or appoint a tax agent like KTP. Be ready with full records (yes, even soft copy accounting data).

Stage 3–4: Desk Audit & Findings
Officer reviews your documents, then issues a letter on tax adjustments.

Stage 5–7: Appeal & Assessment
If you disagree, file an appeal with supporting evidence. LHDN will issue Form J/JA or JR depending on outcome.

Stage 8: Formal Appeal (Form Q & N)
File Form Q within 30 days. Missed it? Apply for extension with Form N.

Stage 9: DGIR Review
DGIR has 12 months to review. Many cases settle here through the DRD.

Stage 10: SCIT Hearing
Formal tribunal with a 3-person panel. You may appoint a tax agent/lawyer.

Stage 11: Appeal on Law
High Court → Court of Appeal, but only on questions of law.

Read the full content in our blog
https://www.ktp.com.my/blog/tax-audit-and-appeal-in-malaysia/18sept2025