Tax Audit: “Cash Commissions Too High” — Defended with Evidence

Tax Case Study 2

Tax Audit – Cash Commission Expenses Successfully Defended

At a Glance

• Industry: Sales & distribution

• Issue: LHDN tax audit on high cash commission expenses

• Initial Assessment: RM780,000

• Final Settlement: RM80,000

• Result: About 90% reduction in proposed assessment

The Challenge

During a routine tax audit, LHDN claimed that the company’s cash commission payments were too high and poorly supported, proposing an additional RM780,000 in tax adjustments.

Our Solution

We reviewed each commission payment, matched them to bank records and sales activities, and organised proper documentation. Where needed, we helped the client improve internal records and approval processes to clearly show that the expenses were genuine and business-related.

The Outcome

• Proposed assessment reduced from RM780,000 to RM80,000

• Legitimate business expenses retained

• Clear procedures created to prepare for future audits

Why Clients Trust INFINITUS

• Practical, evidence-based solutions

• Clear communication with tax authorities

• Strong protection of client interests

• Long-term improvements, not short-term fixes

Looking for a trusted advisor to guide you through tax audits, investigations, or complex business challenges?

INFINITUS is here to help you move forward with clarity and confidence.