Harsher punishment awaits tax evaders, their abettors
evaders will face harsher punishment following the new legislation relating to the reintroduction of the Sales and Services Tax (SST) tabled in Parliament yesterday.
According to the Sales Tax Bill 2018, a repeat offender who tries to evade tax or assist others to do so can face up to four years longer in prison compared to the previous Sales Tax 1972.
Under Section 43A of the nowdefunct Sales Tax 1972, the maximum fine for the offence was a fine of not more than RM50,000 or maximum three years’ jail or both.
However, under Section 86(2) the Sales Tax Bill 2018, a firsttime offender can be fined between 10 to 20 times the sales tax amount or up to five years’ jail or both.
A second or subsequent offence will see a fine of between 20 to 40 times the sales tax amount or up to seven years’ imprisonment or both.
However, a fixed fine of between RM50,000 and RM500,000 will be imposed if the exact amount of sales tax evaded cannot be determined.
The Sales Tax Bill 2018 also provides for tougher punishment for those abetting in the preparation of a return statement that understates the liability for sales tax.
Those found guilty of this offence face a fine of between RM2,000 and RM20,000 or up to three years’ jail or both.
Deputy Finance Minister Datuk Amiruddin Hamzah tabled the GST (Repeal) Bill 2018, Sales Tax Bill 2018, Service Tax Bill 2018, Customs (Amendment) Bill 2018 and the Free Zones (Amendment) Bill 2018.
The proposed Sales Tax Bill seeks to provide for the charging, levying and collection of sales tax.