Customs, IRB will collaborate to audit errant companies

PUTRAJAYA: The Customs Department and Inland Revenue Board (IRB) will collaborate to audit and detain errant companies that has outstanding corporate tax and Good and Services Tax (GST) from today.
Stating this, Finance Ministry secretary-general Tan Sri Mohd Irwan Serigar Abdullah said both enforcement authorities will combine initiatives under Standard Operating Procedure (SOP) Audit Programme.
Both Customs and IRB signed the SOP Audit Programme today, which will focus on Klang Valley before going nationwide.
“The initiative under the National Blue Ocean Strategy (NBOS) will enable sharing of information and joint enforcement, besides saving money.
“Both agencies will share information on those who don’t declare either the corporate tax or GST, commit fraud in declaring taxes or those who don’t pay.
“With the combined initiative by both parties, it is hoped that any wrongdoing will be traced quickly,” Irwan said today.
He said the joint audit programme would see provide advice and recommendations to the individuals and companies to comply the taxation regulations.
He also stressed that all officers involved in the audit programme will be given a card to only carry out auditing and are prohibited from collecting any payment.
“Two types of working committee have been formed under the programme — the Joint Audit Committee and Joint Audit Implementation Committee.
“These committees will work together in the selection of cases, audit scope, audit procedures and implementation,” Irwan said.
Present were Customs director-general Datuk Seri T. Subromaniam and IRB chief executive officer Datuk Sabin Samitah.
Asked to comment on the arrest of a couple involved in false GST claims amounting to RM25.58 million, Subromaniam said the department had identified more suspects.
“We believe more people are involved in this scam. The case involved more than 10 people who registered a company, but did not carry out any business.
“They, however, have been claiming the Input Tax Credit (ITC). I can’t tell for sure what is the actual amount of losses incurred by the government in paying for this fraud,” he said.