LHDN said these entities, which include nearly 24,000 individuals, were identified based on asset ownership and their ability to secure loans and securities valued at RM500,000 and above.

“The tax losses suffered by the government are estimated at RM665 million. This is a significant amount and can adversely impact the country’s economic stability if not addressed immediately,” it said in a statement.

The agency advised the 31,598 entities, particularly the 23,751 individuals, to voluntarily appear at the nearest LHDN branches to register their income tax files and declare their income.

“They will be given a grace period of one month from June 15 to July 15,” it said.

Upon the expiration of the grace period, the agency said it would carry out civil and criminal investigations as well as enforce tax audits against those who had failed to file the tax declaration forms.

“Criminal probes would result in charges being filed in court under the Income Tax Act 1967 for tax evasion,” it said.