Customs and IRB step up co-operation on tax audits

PUTRAJAYA: The Customs Department has strengthened its partnership with the Inland Revenue Board (IRB) in conducting audits on companies to reduce tax leakage and improve efficiency.

The two organisations inked the standard operating procedure (SOP) for the joint audit programme that will see them conduct joint audits as well as share information on companies to improve the collection of GST and corporate tax.

Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah, who witnessed the signing of the SOP, said the joint audits, which are limited to companies in the Klang Valley for now, would soon be extended nationwide.

He added that the cooperation and the sharing of information would prevent instances of double audits conducted by the Customs Department and the IRB on the same companies.

“They have already been working together, but this agreement will fine-tune the SOP of the cooperation and hopefully, it will further improve the country’s tax collection.

“Sometimes a company may be paying its corporate tax but not paying GST, and sometimes the same company may be evading both taxes. In such cases, the sharing of information can save resources and reduce costs for us as well,” he told reporters at the ceremony here.

Late last year, reports emerged about a possible merger between the Customs Department and the IRB, with many commenting that such a move would improve the efficiency of tax collection as it would allow a single audit covering both income tax and GST.