THE Inland Revenue Board (IRB) has yet to refund taxpayers RM3.8 billion for overpayment for the assessment years 2017 and before, the auditor general’s report found today. 

The delay has resulted in IRB paying RM38.29 million in compensation to 135,960 cases between the years 2013 and last year. 

“Arrears of tax refunds for the year of assessment 2017 and before, amounting to RM3.807 billion, have yet to be settled,” Auditor-General Nik Azman Nik Abdul Majid said at the launch of Series 1 of the Auditor-General’s Report 2019.

According to the report, IRB did not abide by its own policy of “refund first, audit later” leading to a delay in payments. 

IRB reasoned that refunds could not be paid because audits were not completed.

The auditor-general recommended that IRB revert to its policies for guidance and to  federal allocations to offset the arrears.

Meanwhile, the Customs Department was found to have overpaid in 75 cases of GST refunds amounting to RM4.38 million. 

“The audit found that this happened because the officer in charge did not check the date of receipts of the GST-03 Statement but instead carried out the repayment process according to the assignment file submitted,” the report read. 

The auditor-general’s recommended that Customs officials track down the companies and taxpayers that had been overpaid to recoup the RM4.3million.

He also said the companies and the officers in charge of the GST repayments should be investigated.

“An investigation on the company that made the claim and the customs officer who is responsible should be done.” – August 24, 2020.