Kuala Lumpur: One and a half years after implementing the goods and services tax (GST), the Customs Department found in its current audit of GST–registered firms that a third of them have problems with the new tax regime.

Under the first phase of the Customs Blue Ocean Strategy Operations, which began on Sept 1, the department targets to audit 50,000 firms to ensure they are on the right track.

Customs deputy director-general (customs and GST) Datuk Subromaniam Tholasy told Nanyang Siang Pau that the first week of the exercise went smoothly but of the firms audited, one-third were facing problems and the main one was their failure to provide information accurately in their GST returns.

He believed that the majority of the firms which submitted incorrect returns made the mistake due to incorrect guidance.

However, he said in some instances customs officers found firms they audited to have many customers at their counters but the revenue stated in their GST returns was relatively low for every season or month.

He said this discrepancy existed in both suppliers and retailers and the department need only look at the purchases and stock kept to more or less know whether there was any hanky panky in their GST returns.

Section 88 of the GST Act 2014 provides that any person who makes an incorrect return by omitting from the return any information; understates any tax or overstates any imput tax in a return; or gives any incorrect information in relation to any matter affecting his own liability to tax or the liability to tax of any other person, commits an offence.

Upon conviction, the person would be liable to a fine not exceeding RM50,000 and/or to imprisonment for a term not exceeding three years and to a penalty of the amount of tax which has been undercharged.

 

the source:www.dailyexpress.com.my