Finally it is proven that LHDN overtax foreigner on their RPGT obligation. This is especially so because the retention sum which is 7% of the selling price is taken upfront. The retention sum is hence quite a tidy sum and very tempting to LHDN to keep as much as possible and return as little as possible.

Unresolved dispute of LHDN overtax foreigner

After having being stonewalled for more than a year by LHDN officers, I then turned to the Malaysia High Commission consular office in Singapore about the unresolved dispute that I had with LHDN.

Because of the many other matters regarding my immigration offence, it has given me an opportunity to highlight this dispute to MHC at the same time.

LHDN officers cannot ignore overtax foreigner complaint

After I highlighted this unresolved dispute to MHC, I followed up and sent another email to LHDN. I also copied this email to MHC. After that, LHDN responded to my email. Obviously the escalation to MHC helps to stop LHDN officers from ignoring my complaint. They had been stonewalling me for more than one years.

Through the re-started email correspondence exchange, LHDN officers vigorously claimed that they did not processed my claim because they did not sighted my receipts and invoices. They also claimed that my lawyer submitted an incomplete computational form one and a half year ago. Both these claims are unsubstantiated.

This therefore confirmed that LHDN has no legal justification for disallowing my claim. In other words, LHDN confirm that they had overtaxed me considerably on my RPGT. Read the post on 7% retention sum and over-taxation.

LHDN refused to rectify and insist to overtax foreigner

However LHDN still refused to rectify and return the overtax amount.

Instead LHDN officers made an unsubstantiated claim that their officers did not sighted my receipts and invoices. They also made another unsubstantiated claim that my lawyer submitted an incomplete computational form.

With that we can see how these LHDN officers treat foreigners with regards to taxation matters.

Awaiting a final resolution

Hence I have written to MHC as to what is next in view of LHDN refusing to rectify.

Apart from suing in court, I can only highlighted this matter to the Malaysia High Commissioner for answers.

What the Malaysia government is going to do about this matter? Is there any recourses available to me according to Malaysia law?

Since there is no legal justification to keep my overtax money, it means that this is an illegal activity by LHDN officers. It seems the only recourse is to make a police report if nothing is being done by the Malaysia government.

This blatant disregard of our rights as foreign owners of Malaysia properties is a public interest matter and the media is copied on the email to MHC.