IRB Enhances TCG Programme With Better Accessibility And New Monitoring Phase

KUALA LUMPUR, May 5 (Bernama) -- The implementation of the Tax Corporate Governance (TCG) programme by the Inland Revenue Board (IRB) has been further strengthened through improvements in accessibility and efficiency, as well as the introduction of a more structured monitoring phase for participating companies.

IRB Tax Compliance Sector Audit Policy and Quality Division director Najlah Ishak said several new initiatives have been introduced to improve accessibility and efficiency, including automatic annual reviews and the expansion of eligibility criteria.

“Investment holding companies (IHCs) are now eligible to participate in the programme if they apply together with their subsidiaries or associated companies. This allows corporate groups to practise tax governance in a more comprehensive manner at group level,” she said when appearing as a guest on Bernama Radio’s Klinik Cukai programme here today.

Elaborating further, she said the monitoring phase, which came into effect on Dec 1 last year, requires participating companies to undergo a three-year monitoring period, during which IRB conducts annual risk assessments, engages with participants where necessary, and reviews annual self-declaration letters submitted by companies.

“Participants are also required to proactively disclose any material transactions to IRB in real time, without waiting for a later stage.

“At the final stage, an annual risk meeting will be held between IRB and participating companies,” she said, adding that the programme currently focuses on large corporations.

Najlah said the improvements reflect IRB’s efforts to develop a more structured and practical governance framework, enabling companies with strong tax governance to engage with the tax authority in a more transparent and collaborative manner.

She added that the TCG framework aims to clearly distinguish between companies with high levels of tax compliance and taxpayers who require closer monitoring and supervision by IRB.

“The TCG programme functions as a filtering mechanism. Companies that demonstrate strong tax governance, transparent practices and responsible tax management will be identified as low-risk or high-compliance entities.

“The programme also provides strategic benefits to tax administration. It enables IRB to optimise enforcement strategies. For companies with strong tax governance, TCG provides a collaborative pathway, which can also be seen as a form of ‘safe harbour’ engagement,” she said.

Overall, Najlah said the TCG programme aims to create a more collaborative compliance environment, allowing compliant taxpayers to interact more smoothly with the tax authority, while enabling enforcement efforts to be focused on those who genuinely require attention.

She also said that the programme is designed as a long-term initiative with a clear direction towards 2030, where IRB is moving towards a real-time, data-driven compliance system.

“Key focuses include expanding corporate participation, strengthening guidelines and monitoring mechanisms, and integrating TCG into a broader corporate governance framework.

“In the long term, TCG is expected to become a national benchmark for responsible tax practices and to foster a sustainable culture of compliance in Malaysia,” she added.

-- BERNAMA