AUDIT REPORT A total of 128,165 individuals have been barred from leaving the country for failing to pay taxes amounting to RM3.4 billion as of June, the National Audit Department said.

The restrictions were issued by director-general of Inland Revenue Board in accordance with Section 104 of the Income Tax Act 1967 and Section 22 of the Real Property Gains Tax Act 1976.

The tax defaulters are required to settle taxes in full before they can have the restrictions lifted.

However, they can apply for a provisional or temporary release, if certain rules are fulfilled.

The audit team was satisfied with the management of travel ban imposed by the IRB, particularly in terms of enforcement measures.

"This is shown by the increasing number of cases recorded, plus the amount involved on income and real property gains tax for the year 2013 to 2015," it said in the Auditor-General's Report (Series 2) that was released today.

The audit also called for the IRB process of blacklisting tax defaulters to be continuously improved.