Hi all sifu,

I am under employment & i am having a RM720k housing loan, recently my father has decided to transfer all his Fixed Deposit (around RM300k) to my loan for principle deduction in order to reduce the interest.

Q1: I heard people were saying if you settle your loan, LHDN will come and audit you. Is this true?

Q2: In this case i have not settle my loan, will LHDN still come and audit me?

Q3: As long as i can prove that the money is come from my father, i will be ok right? I am under an employment.

Q4: My father's income tax, he was a hawker and he has retired - 68yr old. He did declare tax for his business. However, the main portion of his money is come from gamble - Toto 200k, which he have NO document to prove it (didn't photocopy). So if i am to point LHDN to my father, i am just worry they will audit my father.

In order to avoid Q4, i wish all sifu here can advice me what to do.

Thanks in advance.

toto 200k if legal de u can get receipt from toto

don't do it one shot,

make a few separate transfers

within a span of few yrs

^this bro, slow and steady..

If ur expenses > annual income for sure they will suspect. Advisable to separate it by few years

Principal deduction of loan is not full settlement of loan, as you still have to service your loan until the maturity date of the loan (the day you make your final payment). LHDN will be not be coming after you unless you are suddenly able to fully settled your outstanding loans with a mere peanuts of salary and the payable income tax were way below the value of what you were able to purchase over a short period of time on properties or automobiles.

LHDN will know whether we settle housing loan??

large movement of cash will trigger BNM

If your father's fixed deposit money is clean, there is no need to worry about lhdn unless gifts from your father is taxable.

This post has been edited by icemanfx: Jul 28 2017, 04:58 PM

what type of loan account are you using? conventional or flexi? If flexi no problem la as you can put all money in to cover principal to reduce interest and you dont need to settle it


any idea how much per transaction will triggers BNM's alarm?

at 50k u would already need to fill up a declaration form

dunno what amount would trigger BNM, but heck, last i read news, 2.6b oso did not trigger anything

hahahaha...thanks

Thanks for all the replies
Yes, that is exactly my question, so as long as i dont settle the loan (i got no enough money for that also), with 300k LHDN wont come to me? Anyone can confirm on this? How the bank system work, report to BNM / LHDN, etc.

That is what i afraid, he didn't have any record

Flexi, ya i dont have enough money to settle, just to reduce interest only. Apart from BNM, will Bank report to LHDN also?

Nice 1, but i dont wear THAT diamond ring u see, i am so worry when they come to me
and i am to point my father? My father sure

i think some how BNM and LHDN will hv a certain linkage, maybe just slowly transfer below 50k each time lor

The Toto is legal one right??
Somehow sure LHDN would have record.. Also for FD too.. So don't worry much...

Can also transfer slow slow.. Small amount, if still scared...

As for your question previously... Banks sure have link to BNM.. They the one will give report...

This post has been edited by nexona88: Jul 28 2017, 08:48 PM

That's why toto price receipt is something very valuable. People willing to pay for the receipt.

LHDN might hv the records if his dad really strike TOTO legally but then again onus is on the tax payers to keep records.

This post has been edited by arrsoo: Jul 28 2017, 10:21 PM

Hmm interesting info...
Didn't know can also "cheat" this way.
U gave me idea

I know tax payers needed to keep record...
But still LHDN got link one..

Unless they trying to achieve some KPI... So find fault on people... No wonder their collection past year breaking record...
Now also very active in "catching" people who under declare or others..

I don't know if one person shows a whole bunch of lottery receipts, what can the inland revenue officer do ? There is nothing which says a person cannot strike lottery multiple times right ?