200 Pahang-based companies owe gov't RM40 million in unpaid taxes: IRB


KUANTAN: Up to two-hundred Pahang-based companies have failed to pay RM40 million in taxes over the last three years.

The figure was revealed by Inland Revenue Board (IRB) deputy chief executive officer (tax operations) Mahmood Daud, who said that the companies, which include private limited corporations, are in various fields, including trading, manufacturing and services.

Mahmood said the companies have been pinpointed over their failure to file Form C or the Return Form for a Company to the IRB, in spite of being active, and possessing high-value assets.

He was speaking during a press conference after launching Ops Patuh at Menara LHDN here, today.

Ops Patuh is a two-day operation, involving 82 IRB personnel, which aims to seek out corporate tax payers which fail to submit their Form C.

On April 13, the New Straits Times quoted IRB chief executive officer Datuk Sabin Samitah as saying that errant tax payers, encompassing companies and individuals, "cheated" the government of about RM47 billion over the past two years.

Mahmood warned companies which have received notices under Ops Patuh to submit their Form C within 21 days from the date of the notice.

He said failure to do so can result in the companies being hit with compounds of between RM200 and RM2,000; or dragged to court, in which conviction can result in fines of between RM200 and RM2,000, a jail term of up to six months, or both.

"IRB will also carry out its own calculations on how much taxes these companies must pay," he said.

Also present at the launch was state IRB director, Datuk Mat Lazim Salleh.