IRB to tax ill-gotten gains

Board looking into ways to collect revenue from illegal activities

newsdesk@thestar.com.my CYBERJAYA: The Inland Revenue Board (IRB) will intensify efforts in collecting the country’s rightful share of revenue, including from those involved in corruption cases involving millions of ringgit.

IRB chief executive officer Datuk Sabin Samitah said the board is looking into how it can tax proceeds from illegal activities as it will increase the country’s coffers.

“We have not come up with the calculations, and it may go along the lines of the 12% to 28% annual income tax paid by individuals or companies.

“I intend to meet the Malaysian Anti Corruption Commission chief commissioner soon to discuss this matter,” he told reporters after attending IRB Hari Raya celebration officiated by Treasury secretary-general Tan Sri Irwan Serigar Abdullah at its headquarters here yesterday.

Sabin added that IRB was finding ways to get hold of the “hidden” revenue that rightfully belongs to the government.

He said those involved in illegal activities are taxable, but most had never declared such gains out of fear of prosecution.

“We will not be able to get the monies while it is frozen by courts as part of the evidence, but eventually, we will get the portion that rightfully belongs to the people,” he added.

Sabin also said IRB will now go after expartriates who fail to pay their income taxes, adding that a special unit had been set up for the task.

“We also know many pasar malam traders are failing to remit their taxes, which could be up to 28% of their annual nett profit.

“We will use soft approaches to get them to pay up, and will only resort to punitive action if they still refuse to comply,” said Sabin, who revealed that IRB is after 3,860 companies, businesses, and individuals who owe some RM225mil in tax arrears.

“We have served summonses to almost all the companies,” he said of Ops Kutip Nasional 2017 that began in May.

Selangor tops the list in terms of amount owed, at RM45mil, followed by Johor (RM39mil), and the Federal Territories (RM22mil).

Meanwhile, Irwan expressed confidence that IRB will achieve its target of collecting RM127bil by early next year, after managing to collect RM56bil so far.

. . . we will get the portion that rightfully belongs to the people.

Datuk Sabin Samitah