QUOTE(MUM @ Aug 12 2020, 05:19 PM)
after the audit and explanation given, if it is not justifiable, then they will seek to do fine/penalty right?
but now TS, tiba tiba kena penalty without any audit or interviews being made by LHDN :confused:
some more 2x the property value

QUOTE(yklooi @ Aug 12 2020, 05:34 PM)
that 2x of property value "could be" just a coincident numbers between the penalty and the property price.
(my imaginative scenario)
for before 2005, TS had been making alot of money and dutifully and diligently had been paying taxes for many years.
while during that time, he saved and invested those money.
The money saved can be enough to sustain him for whole life with alot to spare too.
Thus 5 yrs after he stopped working, he decided to buy a property (in 2010) with some of those money.
i think like jiaen0509 mentioned, LHDN maybe wondering how TS sustain his living expenses.
he did not declare income tax since 2005, he must have income to sustain himself.
thus if they really need to know.....they should have call TS for some audits/interviews to learn about that.
but TS got no audit/interview, but got penalty, thus i think it is most likely, that penalty is for the non submission of tax reporting issue
No declare tax actually is satu kesalahan. So like others here have mentioned. Even no income, you are responsible to put 0 every year.
But if 2x value of property. Maybe need to check with LHDN how thet calculate the penalty. If you tell them you earn the money before 2005. They will check you before 2005.
Just need to ask yourself whether you suppose to be taxed but you did not declare/pay the tax?
Or maybe they send you letters ask to be audited. But didn’t successfully deliver to your mailbox? Maybe you moved home already the letter sent to old address?