SHAH ALAM: The Inland Revenue Board (LHDN) has identified social media influencers who flaunt their cash and wealth online and ensure they fulfil their tax obligations.

LHDN Tax Compliance Department director Abang Ehsan Abang Abu Bakar said the monitoring was conducted daily through all social media and e-commerce platforms.

He said that its specialised unit, the Digital Economy Audit Section (SAED), plays a specific role in monitoring the activities of influencers and digital entrepreneurs who live luxurious lifestyles but do not pay taxes.

"Even though it may not be an offence, monitoring is carried out to ensure that they fulfil their responsibility to pay taxes," he said in a special interview with Sinar Harian at the LHDN headquarters in Cyberjaya.

"The selected influencers must submit evidence related to their business activities to LHDN during the compliance review," he said.

He explained that SAED monitors the comment sections of social media pages owned by identified influencers and digital entrepreneurs.

He said LHDN also faces challenges in implementing monitoring methods through social media, as it constantly monitors all allegations and information, whether factual or uncertain.

Meanwhile, a social media influencer regretted taking tax payments lightly.

An influencer who only wanted to be known as Zaidi revealed that he had not paid RM40,000 in taxes for his income from his online social media sales.

"At first, I thought taxes were only for those with fixed income.

"I have quite a lot of income, but it was fluctuated based on sales, sometimes more and sometimes less," he said.

He said he received a letter from LHDN requesting him to visit the agency office.

He said he thought it was a routine meeting, but when he arrived at the LHDN office, he was shown files that stated how many sales he got from social media.

"From there, I know all my social media activity was monitored. I was also asked about the income that I received," he said.

He said the interview was conducted well, and he was given an explanation regarding taxation and his mistakes.

"At that time, I realised that my nonchalant attitude towards income tax matters backfired after LHDN's investigation revealed that I had not paid taxes amounting to RM40,000, a substantial sum that I had to settle within a month," he said.

Zaidi said he regretted his indifferent attitude.

He acknowledged that everything that happened was his mistake but expressed gratitude to the LHDN officers who made the process easy.