A company sold a piece of land.

The gain was calculated.
CKHT was filed.
Tax was paid.

The director asked,
“Done already, right?”
Everyone moved on.

One year later,
a letter arrived from HASiL.

It referred to Section 27 of the Real Property Gains Tax Act 1976.
It wanted four documents.

Deadline?
14 days.

The boss looked at me.
“Last year already filed.”
“Why still check?”

Because filed does not mean finished.

From 1 January 2025,
RPGT moved to the Self-Assessment System.

You calculate the gain.
You decide what costs are allowable.
You claim the exemption.
You calculate the tax.

The CKHT return you submit becomes your assessment.
HASiL does not need to issue a manual Notice of Assessment.
Sounds convenient.

Until HASiL asks,
“Can you prove every number?”

A typical Section 27 letter may ask for:

1. Audited accounts.
2. Borang C tax computation.
3. Fixed asset schedule.
4. Detailed disposal account.

Why these four?
Because HASiL wants to see whether they all tell the same story.

Was the property properly recorded?
Does the income tax treatment agree with the RPGT filing?
Can the acquisition cost and capital additions be supported?
Are the legal fees, agent commission, stamp duty and other permitted expenses backed by documents?

This is where many SME companies get caught.
Not because they purposely avoided tax.

But because one year later…
“Renovation invoice got?”
“Previous accounts person handled.”
“Proof of payment?”
“Contractor already closed down.”
“Why repair expenses claimed as enhancement cost?”
“Accounting system put like that.”

😑😑😑

Unfortunately,
HASiL does not audit your explanation.
HASiL audits your documents.

If the documents cannot support the figures,
tax adjustments and penalties may follow.

When the letter arrives,
do not simply send whatever you can find.

Reconcile everything back to the CKHT return filed.

If one number does not agree,
find out why before HASiL does.

If you genuinely need more time,
request an extension in writing before the deadline.

If your company disposed of property from 1 January 2025 onwards,
do not wait for the Section 27 letter.

Pull out the file now.

Check the agreement.
Check the invoices.
Check the proof of payment.
Check the fixed asset schedule.
Check the disposal computation.

Read the full content in our blog
https://www.ktp.com.my/blog/rpgt-tax-audit/10aug2026