MALAYSIAN tax authorities have detected under-declared revenue estimated at RM1 bil involving the years of assessment 2018 to 2020 stemming from the misappropriation of cooking oil subsidies by some unscrupulous quarters.
This has prompted the Inland Revenue Board Malaysia (IRB) to launch Ops Saji, which is the agency’s inaugural integrated operation with public interest in mind to combat such menace.
“We expect to collect RM200 mil in taxation following the implementation of Ops Saji,” IRB CEO and director-general Mohd Nizom Sairi told a special media conference in conjunction with the launch of Ops Saji.
“There have been revelations about the misappropriation of cooking oil subsidies by a certain irresponsible parties which not only has adversely affected the daily needs of the people but also triggers the existence of tax evasion and leakage elements insofar as the national revenue is concerned.”
The targeted check is intended to clamp down on companies receiving government subsidies for cooking oil. Investigation was initiated following public outcry about lack of supply for packet cooking oil.
“Among the reasons why companies could under-declare their income was because their subsidy quota was given to a third party, resulting in unreported sales of cooking oil,” explained Mohd Nizom.
“From the amount of subsidy allocated by the Government, the total number of packet cooking oil should be of a certain amount but there is a shortage.”
Some 63 cooking oil repacking companies were found to have under-declared or not declared their income, of which 44 had under-declared their taxes while 19 did not even have their taxes filed.
Mohd Nizom further reiterated IRB’s commitment to intensify its efforts to create tax awareness among the people so that they can carry out their tax responsibilities voluntarily.
“Only through this way can we guarantee more sustainable tax collection all the time to build a prosperous nation,” he added. – March 23, 2022
