Businesses decry hefty fines for late submission of financial statement — LDP
KOTA KINABALU: Liberal Democratic Party (LDP) organizing secretary Peter Chong yesterday voiced his concern over the heavy fine imposed by the Companies Commission of Malaysia (SSM) on the late lodgement of financial statement.
Chong said he had received numerous complaints from businesses whereby their companies and directors were separately fined RM5,000 each for the offence, even for dormant firms.
Although the government offers rebates up to 80 per cent for settling the fine in September, 70 per cent in October, 60 per cent in November and 40 per cent in December, the amount is still too much for businesses to bear, he said.
“A company with two directors will have to pay a hefty fine of RM15,000 in total.
“Even after 80 per cent rebate, the company still has to fork out RM3,000 for the fine.
“This is a considerable sum for small and medium enterprises (SMEs), which are most of the companies in Sabah.”
As such, Chong hoped that the government would be more lenient in this matter.
“The SSM does not function like the Inland Revenue Board of Malaysia.
“SSM is only responsible for ensuring the financial statements of companies are available in the system for users to check the status of a company.”
Even if the SSM wanted to impose a heavier fine, he said the commission ought to inform businesses through the mass media on the time-frame given for companies to fulfil their obligations.
He said businesses were shocked to be penalized such a hefty fine since the SSM began to issue the notice in August this year.
Chong argued that the penalty for late lodgement of financial statements to SSM had never exceeded RM1,000.
“The commission used to be more lenient in dealing with appeals and rebates.”
Chong pointed out that the penalty was a huge blow to businesses amid the current economic slowdown, increment of minimum wage next year and RM10,000 levy imposed on foreign workers who have worked for at least 10 years.
“The people are hoping the new government will improve our economy.
“However, the increase in fine for late lodgement of financial statement to SSM has inevitably increased the burden of businesses.
“Companies may be forced to include the fine into their expenditures, which ultimately will be passed down to consumers.”