Kuala lumpur: 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.
According to BERNAMA News Agency, the IRB stated that it conducted an enforcement operation against the company yesterday, targeting multiple locations in the Klang Valley, including the company’s business premises, the residence of the company’s director, and an auditing firm. The operation aimed to gather documents and evidence related to the alleged tax non-compliance.
Initial investigations revealed that the company failed to report actual income from sales transactions totaling RM70 million. The case is currently being investigated under subsection 112(1A) of the Income Tax Act (ITA) 1967 for the company and paragraph 113(1)(a) of the ITA 1967 concerning the company’s directors.
The IRB emphasized that this operation aligns with the government’s efforts to combat cartels and smuggling syndicates, which have long impacted national revenue. It stressed that ongoing investigations and impending court cases involve various tax evasion activities, including gold mining, scams, misuse of welfare status, gambling proceeds, and undeclared income from businesses owned by foreigners.
The IRB reiterated its commitment to ensuring compliance with tax regulations and addressing revenue leakages. It emphasized that it will uphold the integrity of the country’s tax system and will not tolerate attempts to evade taxes, ensuring all parties fulfill their tax obligations for the nation’s welfare.
Meanwhile, IRB chief executive officer Datuk Dr Abu Tariq Jamaluddin confirmed the operation, noting that it is part of the IRB’s strategic efforts to enhance tax compliance, particularly in sectors involving high-value transactions like luxury vehicles. He highlighted that non-compliance involving large sums not only undermines national revenue but also compromises the fairness of the tax system, stressing the seriousness of such offenses.