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Customs to investigate 30,000 companies evading income tax

PETALING JAYA, June 10 (Sin Chew Daily) – The Customs has found 30,000 companies evading income tax after the implementation of Goods and Services Tax (GST) and put some traders setting up new companies after closing down their businesses before the implementation of GST, on the watching list.

Customs GST director Datuk Subramaniam Tholasy said that more than 30,000 GST-registered companies have never filed or paid income tax.

"These are underground businesses and they surfaced after the implementation of GST," he said.

He said that the Customs is aware that many traders have closed down their companies before the GST is implemented and later formed new companies.

Many GST-registered companies were found to have not registered for the Sales and Services Tax (SST). The single-stage tax made it hard for the Customs to detect unregistered companies.

However, companies are required to register for the GST or they will not be able to collect the Input Tax and when they registered, they exposed themselves.

Reanda LLKG International Chartered Accountants managing partner Koong Lin Loong said that after the implementation of GST, the government could trace companies evading tax via two channels.

Koong told Sin Chew Daily that the first channel would be checking on the hedging of buying and selling volumes and the second channel is comparing the tax reports submitted to the Inland Revenue Board of Malaysia and Customs.

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