IRB UNCOVERS TAX NON-COMPLIANCE LINKED TO LUXURY VEHICLE CARTEL

PUTRAJAYA, Nov 18 (Bernama) -- The Inland Revenue Board (IRB) has uncovered tax non-compliance by a company suspected of being involved in a luxury vehicle cartel network, including failing to declare actual income from sales transactions amounting to approximately RM70 million.

IRB, in a statement today, said that it conducted an enforcement operation against the company yesterday, involving several locations in the Klang Valley, including its business premises, the residence of the company’s director and an auditing firm.

“Through this operation, searches were conducted to obtain documents and evidence related to tax non-compliance.

“Initial investigations revealed that the company failed to report actual income from sales transactions amounting to RM70 million,” it said.

The case is now being investigated under subsection 112(1A) of the Income Tax Act (ITA) 1967, involving the company, and paragraph 113(1)(a) of the ITA 1967, involving the company’s directors.

“(This operation) is in line with the government’s efforts to combat cartels and smuggling syndicates, which have been entrenched for decades to the detriment of national revenue,” it said.

It also stressed that, among the tax evasion cases currently under investigation - and those which will be brought to court - are cases involving gold mining activities, scams, misuse of welfare status to conceal transactions, gambling proceeds, other illegal activities, as well as businesses owned by foreigners which have failed to declare income.

“This step demonstrates the IRB’s continued commitment to ensuring that every party complies with tax regulations, and to curbing leakages in national revenue.

“Therefore, the IRB remains firm in upholding the integrity of the country’s tax system, and will not compromise with any attempt to evade taxes. It will ensure that all parties fulfil their tax obligations, for the well-being of the nation and its people,” it said.

Meanwhile, IRB chief executive officer Datuk Dr Abu Tariq Jamaluddin, when contacted, confirmed the operation, noting that it forms part of the IRB’s targeted efforts to strengthen tax compliance, particularly in sectors involving high-value transactions such as luxury vehicles.

“Non-compliance involving large sums not only undermines national revenue, but also compromises the fairness of the tax system, and should not be taken lightly,” he said.

-- BERNAMA