KUCHING: The repaying of Goods and Services Tax (GST) refund arrears amounting to RM20 billion will be carried out till year end. Royal Malaysian Customs Department’s Internal Tax Division Assistant General Director Datuk Ahmad Maher Abd Jalil said the arrears comprising an outstanding RM20 billion will be paid as of this year, with part of the portions paid after the the audit process have been finalised.
“The amount of repayment of the tax refund is huge and for companies that have outstanding GST to be refunded. I hope that
we will be able to refund the amount soon, as the refunding process has been divided into different phases.
“Companies with claims above RM100,000 per taxable period is compulsory to be audited. We will release 70 percent and 30 percent shall be retained prior to the completion of the audit,” he said during the meet-the-people and assembly session at Wisma Kastam, here yesterday.
Meanwhile, it is not mandatory for companies with claims between RM50,000 and RM100,000 to be audited but a site visit is needed to be carried out.
Thus, Ahmad appealed to the Customs Department nationwide to expedite the auditing process to enable the refund process of RM20 billion by year end. He also revealed that there were about 200,000 GST registrants who have yet to send in their statements.
“Failure to send the statements would cost the country to lose billions of ringgit.”
Ahmad also advised its officers and personnel to practise high integrity as there were bound to be challenges and limitations.
“In the era of globalisation, there are many challenges in the department such as compliance. This challenge cannot be avoided, on the ratio of workload and shortage of staff.
“This is the challenge we are facing now. We have to overcome such challenges in the best manner effectively,” he added.
He also said that cooperation with the industry (private sector) should be carried out in high compliance.
“When the industry is committed, it will assist the department in executing its tasks.
“Through such compliance, it would allow the private sector to focus on their business. In order to ensure that they abide by the regulations, we need to be aware about the
regulations first.
“That is why we have to find ways to disseminate information to the general public in terms of compliance and knowledge of such laws,” said Ahmad.
Also present were State Customs Department Director Datuk Sharifah Halimah Tuanku Taha and State Head of Tax Division Ramli Othman.
