Quick answer: “Desk audit” and “field audit” remain common business terms, but the current HASiL framework describes general reviews and comprehensive reviews. A general review usually targets selected return items or employer records. A comprehensive review can examine the full business records and may include interviews at the business premises, an LHDN office, online or another agreed location.
How the common terms relate to the current framework
| Common term | Current framework concept | Typical scope |
|---|---|---|
| Desk audit | General review | Selected income, expenses, claims, computations or employer records reviewed from submitted information |
| Field audit | Comprehensive review | Broader examination of business documents, systems, transactions and explanations |
The labels are helpful but not exact legal categories. The location alone does not determine scope: a comprehensive review may be conducted at the premises, LHDN office, online or another agreed place.
What happens in a general review?
Under the Tax Audit Framework on Income Tax and Employer, a general income-tax review examines targeted items reported in the income tax return. An employer review can verify employment records and written notifications about employees.
LHDN may request tax computations, ledgers, invoices, agreements or explanations. If the information is incomplete or raises wider concerns, the case may move to a comprehensive review by letter, notice or official email.
What happens in a comprehensive review?
A comprehensive review can cover all business documents relevant to the years under review. Officers may interview responsible personnel, inspect accounting records and systems, test transactions and compare filed information with source documents.
The company should provide suitable access, a knowledgeable contact person and organised records. It should also keep a log of questions, documents shown or supplied and follow-up commitments.
Key preparation differences
- General review: Focus first on the exact items requested, then test related accounts for consistency.
- Comprehensive review: Prepare an entity-wide reconciliation, systems explanation and issue register.
- Both reviews: Confirm deadlines, preserve records and ensure explanations match the filed return.
Can a desk review become a field review?
Yes. The current framework permits a general review to expand into a comprehensive review. Incomplete records, unresolved discrepancies, significant transactions or wider risk indicators can lead to further enquiries or an audit visit.
Do not delay preparation until an onsite meeting is announced. Use the corporate tax-audit document checklist and perform a pre-audit tax health check while the scope is still manageable.
What should management ask at the start?
- Which entity and years are covered?
- Is the review general or comprehensive?
- Which tax issues or employer obligations are in scope?
- What documents and format are required?
- Who is authorised to communicate with the officer?
- What are the response and meeting dates?
HTL’s LHDN tax-audit support can help prepare the submission and coordinate the review.
This article provides general information. Always follow the wording and deadlines in the specific LHDN notice.
