Cash-Intensive Business: LHDN Investigation & Capital Statement (CS)

Tax Case Study 1

Cash-Intensive Business – LHDN Investigation & Capital Statement Review

At a Glance

• Industry: Cash-intensive retail / services

• Issue: Full LHDN tax investigation with Capital Statement review

• Initial Tax Exposure: RM19.0 million

• Final Settlement: RM2.5 million

• Result: About 87% reduction in proposed tax exposure

The Challenge

The client received a full LHDN investigation notice. The tax authority questioned large gaps in the business owner’s net worth and proposed tax adjustments of RM19.0 million. This created serious financial and operational stress for the business.

Our Solution

INFINITUS carefully reviewed and rebuilt the client’s financial records. We matched cash movements with real business activities, verified data with third-party records, and organised clear supporting documents. Our team then represented the client in discussions with LHDN to explain the findings clearly and fairly.

The Outcome

• Proposed tax exposure reduced from RM19.0 million to RM2.5 million

• Penalties and interest significantly reduced

• Improved record-keeping systems put in place to avoid future issues