Kuala lumpur: Deputy Director-General of the Revenue Collection Department at the Inland Revenue Board (HASiL), Azaharuddin Mohd Ali, has brought attention to a significant issue that many individuals are unaware of: unpaid taxes can result in travel bans overseas. Azaharuddin emphasized the importance of checking travel restriction status on the Immigration Department's official websites or the MyTax Portal before planning any international trips to avoid potential inconveniences.
According to BERNAMA News Agency, Azaharuddin explained that travel bans could be imposed on individuals or company directors, whether they are citizens or foreigners, who have outstanding income tax, Real Property Gains Tax, or company tax. This is particularly relevant if a director owns at least 20 percent of the company's shares. He stated that HASiL has the authority to enforce restrictions under Section 104 of the Income Tax Act 1967 if an individual fails to settle their arrears and does not cooperate, despite multiple opportunities through initial enforcement actions.
During an interview on Bernama Radio's POV (Perspektif Bukan Persepsi) with Kamal Affandi Hashim, Azaharuddin discussed the procedures involved before travel restrictions are imposed. Taxpayers receive reminder letters, emails, and phone calls before any action is taken. For lifting travel bans, he mentioned that full payment of outstanding taxes is required before an application for cancellation can be submitted, although temporary relief may be granted if a partial payment of the arrears is made.
Azaharuddin noted that temporary relief could be requested for up to three months, depending on the agreed payment terms with HASiL. Taxpayers must ensure the remaining outstanding taxes are fully settled within the agreed installment period and rates. Since March 4, taxpayers have been able to apply online to lift travel restrictions via the e-Travel Restriction Cancellation service on the MyTax portal, with applications processed within five working days if they meet eligibility criteria.
Furthermore, Azaharuddin reminded the public that travel restrictions due to tax arrears not only have legal implications but can also damage an individual's reputation, personal relationships, and career. He clarified that these restrictions are not intended to embarrass anyone but are part of enforcement after several reminders. He advised taxpayers to stay informed about their tax status and to contact HASiL to arrange solutions like payment installments if they face financial difficulties.