PUTRAJAYA — Aug. 30, 2017: Customs and the Inland Revenue Board (IRB) will jointly undertake an audit on all companies in the country in an effort to plug leakages have cost millions in lost revenue to the government.
For a start the audit will cover the Klang Valley.
The joint programme will increase the effectiveness of the audit process by allowing the departments to share information, including those on companies which under declare their corporate income and thus avoid paying the Goods and Services Tax.
Treasury Secretary-General Tan Sri Mohd. Irwan Serigar Abdullah said today that a joint audit main committee and a joint audit operations committee have been formed for this purpose.
On the arrest of the mastermind behind fraudulent GST claims worth almost RM25.58 million, Customs Director-General Datuk T. Subromaniam said he believed many others were committing a similar crime.
In this case, it involved many people who registered a company that did not conduct any business activity but submitted claims of input tax credit.
“The companies registered for the GST in April 2015 but our system terminated the refunds after suspecting something was amiss. When the mastermind got wind that the police were going to arrest him, he quickly fled overseas for several months,” he said.
The suspect was arrested when he attempted to conduct banking transactions on his return. — Bernama