Najib explains IRB’s failure to refund
KUALA LUMPUR: Datuk Seri Najib Razak claimed that the failure of the Inland Revenue Board (IRB) to refund the overpayment of taxes is influenced by various factors.
The former prime minister said Finance Minister Lim Guan Eng had accused the Barisan Nasional government of failing to return the overpayment of property tax and overpaid tax of RM16.046 billion, adding that this was untrue and politically motivated.
He said until now, Lim had not lodged a report on the claim because making a false police report was unlawful.
“There are many reasons why IRB cannot repay, including workers’ issues, foreign companies that are no longer located or operating in the country, and companies that are closed or undetectable.
“In fact, the use of the offset for tax credit is not uncommon. It’s often used here and abroad.
“The government collects RM130 billion in income taxes annually, and in accordance with the final statement as of last year, issued by the Accountant General of Malaysia, the Malaysian government has RM18 billion cash (including RM8.9 billion in hand and RM7.7 billion in a fixed deposit account),”he said in a statement posted on his Face- book page yesterday.
Najib advised the Pakatan Harapan government to set up a Royal Commission of Inquiry (RCI) for the Goods and Services Tax (GST) and other tax issues immediately because it involved RM35 billion in government funds.
He said this was to ascertain whether BN, the Customs Department and IRB had committed breach of trust, or was it a matter of the PH government just continuing its political game.
“I want to state clearly that the tax exemption and the lack of earnings every month after the abolition of GST — replaced with the Sales and Service Tax — has resulted in the government losing RM31 billion in revenue.
“It is likely that after three and a half months, Lim just realised that the ‘tax holiday’ and transfer from GST to SST were wrong decisions.”