TCG Enhances Corporate Tax Governance And Strengthens Confidence In IRB

KUALA LUMPUR, June 10 (Bernama) – The Inland Revenue Board (IRB) continues to strengthen corporate tax compliance, through the Tax Corporate Governance (TCG) programme, a strategic initiative designed to promote transparency and ethical tax governance.

Najlah Ishak, director of the Corporate Tax Governance Section at the IRB Tax Compliance Sector, said that TCG was designed to foster long-term cooperative relationships between taxpayers and authorities, emphasising systematic and integrity-driven tax risk management.

“TCG aims to enhance an organisation’s internal control system through effective tax governance, enabling companies to operate more securely, reduce audit risks, and ultimately boost competitiveness,” Najlah said in an interview with Bernama Radio today.

She added that TCG is implemented in line with international principles recommended by the Organisation for Economic Co-operation and Development (OECD), incorporating a clear tax strategy, structured responsibility assignments, and continuous internal control testing to evaluate the system’s effectiveness.

Through this approach, organisations are encouraged to develop or improve their tax governance frameworks, in addition to delivering more transparent reports to stakeholders, including the IRB.

“Currently, TCG is focused on large-scale companies, including public listed firms, government-linked companies (GLCs), and state government-linked entities, particularly those with a turnover of at least RM100 million and a strong record of tax compliance.

“Priority is also given to organisations that have established a Tax Control Framework, as this structure plays a crucial role in ensuring the effective implementation of TCG,” she said.

She added that participation is voluntary, with no fees charged throughout its implementation. Interested organisations can contact IRB via email at tcg@hasil.gov.my for registration and further details.

She highlighted that TCG participants enjoy several benefits, including reduced tax audit requirements, faster tax refund processes, the appointment of a dedicated tax officer as the main contact, and priority tax consideration without penalties for compliant companies.

“The implementation of TCG goes beyond legal compliance; it also strengthens corporate confidence in the efficiency and transparency of the country’s taxation system,” she added.

“Through the implementation of TCG, the IRB aims to enhance its engagement with taxpayers, while supporting companies in strengthening their financial management, strategically and ethically,” she said.

She further encouraged more organisations to participate in TCG as a proactive approach to tax management, aligning with the increasingly complex and evolving business landscape of today.

-- BERNAMA