Auditor-General’s Report: Technical errors by Customs led to nearly RM15mil in uncollected tax revenue

PETALING JAYA: Almost RM15mil in tax had failed to be collected due to various technical errors by the Royal Malaysian Customs Department (RMCD) in their assessment for completely built up (CBU) vehicles, the Auditor-General’s Report has revealed.

Describing the performance of the department as “less than satisfactory”, the report found that a total of 213 K1 forms have errors in assessment that result in under-collection of taxes amounting to RM1.29mil and over-collection of RM499,296.

“A total of 111 K1 forms contain insufficient vehicles information which involves duties/tax amounting to RM1.85mil and vehicles value of RM2.86mil,” said the report, which was released in Dewan Rakyat on Monday.

The report also found that the Malaysian Association of Malay Vehicle Importers and Traders (Pekema) had failed to apply for an extension of time for keeping unsold imported vehicles for more than 36 months without payment of duty or tax.

“As at Dec 31, 2014, estimated duty due from those unsold imported vehicles amounted to RM12.65mil,” it said.

Besides that, it said seven licensed warehouses (12.3% of those audited), were not insured for fire and theft which involved 725 vehicles with an estimated duty of RM38.22mil.

“The monitoring of movement of vehicles to and from designated areas was less than satisfactory due to the lack of comprehensive and immediate measures to penalise vehicle owners who violated the laws by forfeiting bank guarantees, enforcing penalties and detaining vehicles,” it said.


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