1,748 firms busted for tax evasion

KUALA LUMPUR: The government almost lost around RM2.02 billion due to 1,748 companies in various sectors detected by the Inland Revenue Board (IRB) trying to evade paying tax over a period of three years since 2011.
Its Investigation Department director, Datuk Mohd Nizom Sairi, however, said from a tax compliance audit done by IRB, the government not only recovered the sum owing in tax but also obtained penalty payments amounting to RM1.3 billion from the companies involved.
All these companies committed obscure tax evasion and civil action was taken against them outside court, requiring them to pay tax on additional income assessment and a penalty, he told Bernama.
Mohd Nizom said the IRB also took criminal action against such tax dodgers, with the company owners having to face a jail term. Among their modus operandi were making false purchase and expenditure claims, not reporting sales or reducing the amount of reported sales, besides making excessive allowance claims or claims for ineligible allowances.
"There were also companies which reported partial profits ... perhaps the sales cash transactions made without receipts were not included in the account, as well as raising purchase expenditure purportedly for business."
As for tax dodgers who still refused to settle the additional tax payment and penalty, he said the IRB would use the provision under Section 104 of the Income Tax Act 1967 to prevent them from going abroad and to caveat their assets in order to settle their tax arrears.
The public could report on income tax evasion cases to the IRB via letter or email to pelariancukai@hasil.gov.my, call 03-83138888 ext. 20601/20607 or go to the IRB headquarters in Cyberjaya and to any of its state offices. The identity of the complainant and information received from the individual will be kept confidential. while each complaint will be studied and thoroughly investigated.