Thursday, 25 May 2017
KOTA KINABALU: The Royal Malaysian Customs Department has identified 62,000 out of 441,000 companies who have failed to declare or under declare the Goods and Services Tax (GST).
Its Director-General, Datuk T Subromaniam said the department had sent friendly reminders to 21,000 companies in the first phase of its crackdown last week and would send similar notices to another 41,000 in the second phase this week. The friendly reminder approach was introduced in line with the department’s new policy to focus on informed compliance through education rather compliance through enforcement previously.
“The companies involved can check the notice via their Taxpayer Access Point. I am asking the companies involved to act quickly to correct their declaration and take the opportunity to pay the GST amount payable.
“They are given 3 months from the date the notice is sent to do so, failing which stern action will be taken as the 3-month period is reasonable enough,” he told after presenting the Sabah Royal Malaysian Customs Department”s outstanding service awards 2016 here yesterday.
Subromaniam said the friendly reminders were given to the companies registered under the GST after going through the GST-03 statements and other available figures which did not tally or whether the errors were intentional, or for making under declaration.
In Sabah, he said 3,378 companies did not declare and pay the GST amount less than what it should be, with most of them in the retail sector, including restaurants and entertainment outlet operators.
“Some (companies) think (if) they do not issue receipts, when the Customs comes to audit, with no documents available, the Customs cannot do anything. This assumption is wrong and do not think the Customs do not know as we can still make an assessment,” he said.
On another matter, Subromaniam said the Gross Domestic Product (GDP) growth of 5.6% in the first quarter of this year also reflected increased consumption.
“When consumption increased, the GST revenue also increased,” he said.
Source by: Internet