LGE: RM14.56b in unrefunded taxes falsely recorded as revenue

It failed to transfer amount from Consolidated Fund, says Guan Eng

ASHORTFALL of RM14.56 billion in the Tax Refunds Trust Fund (TRTF) up to May 31 is due to the previous Barisan Nasional administration’s failure to transfer the amount from the Consolidated Fund, and is recognised as government revenue, said Finance Minister Lim Guan Eng.

He said the shortfall led to 1,653,786 taxpayers not receiving their tax refunds for the past six years.

This, he said, meant that the previous administration’s report on the Federal Government’s revenue was inaccurate.

“What the previous government did can be deemed as falsifying accounts and a misappropriation of the arrears of credit balance refunds for other purposes or to cover up its deficit so as to show a surplus.

“Who is responsible? Is it former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah, former finance minister Datuk Seri Najib Razak, or both?”

He said based on the Accountant General Department’s record, the balance in TRTF up to May 31 was only RM1.486 billion, much lower than the required tax refunds of RM16.046 billion.

He said the unpaid tax refunds of RM16 billion were due to the failure of the Cash Management Committee, chaired monthly by Irwan, to transfer the required amount to TRTF, as requested by the Inland Revenue Board (IRB).

He said the IRB director-general had written an official letter to Irwan in 2016 for more funds to be transferred to TRTF, but was ignored.

Lim said police had recorded his statement on the RM16.046 billion that had yet to be refunded to taxpayers.

He said police were investigating the case as a criminal breach of trust under Section 409 of the Penal Code, following a police report by Keranji assemblyman Chong Zhe Min on Aug 23.

Lim gave a breakdown of the figures owed, which showed that the amount yet to be refunded to taxpayers from two to three years ago amounted to 38 per cent of the RM16.046 billion, or RM6.125 billion.

He said the amount owed last year was RM1.789 billion or 11 per cent.

For cases at least six years back, it was RM4.593 billion (29 per cent), while cases from four to five years ago amounted to RM3.539 billion (22 per cent).

The matter came to light last month when Lim said RM16.046 billion in outstanding tax refunds had not been returned by IRB.

The outstanding tax refunds involved 1,653,786 cases of companies, individuals, societies and foundations.