BN held back another RM16 billion in tax refunds

Updated 7 years ago · Published on 22 Aug 2018 1:30PM · 6 Comments

THE previous Barisan Nasional government failed to refund excess income tax and real property gains tax totalling RM16.05 billion as of May this year, Finance Minister Lim Guan Eng said.

The RM16.046 billion of outstanding tax refunds owed by the Inland Revenue Board (IRB) involved 1.65 million companies, individuals, societies and foundations, he said in a statement today.

A total of 29% of cases from six years ago, involving RM3.09 billion due to companies, have not been resolved. A further RM1.503 billion were due to individuals, societies and foundations.

Cases between four and five years old comprised 22%, with RM2.759 billion due to companies and RM780 million owed to the rest.

Cases between two and three years old comprised 38%, he added, with companies owed RM5.212 billion and RM913 million owed to the rest.

Cases less than a year old comprised 11%, with RM1.356 billion owed to companies and RM433 million owed to the rest.

The outstanding amount is due to a shortage of transfers from the direct tax revenue collected to the Tax Refunds Trust Fund (TRTF).

“Tax refunds can only be made using the balance in the TRTF. As of May 31, the balance in the TRTF was only RM1.486 billion based on the records from the Accountant General’s Department, which is far lower than the RM16.046 billion required for the refunds.

“In other words, there exists a shortfall of RM14.56 billion as of May 31, which resulted in 1.65 million taxpayers not receiving their tax refunds as far back as more than six years ago.”

Lim said the RM14.56 billion not transferred from the consolidated funds to the TRTF was recognised as revenue by the previous government.

“This means that the federal government revenue that was reported by the previous government is not accurate and larger than what it actually was,” he added.

The arrears were due to the failure of the case management committee in the ministry, chaired by former Treasury secretary-general Irwan Serigar Abdullah, to allocate enough funds to the TRTF as requested by the IRB.

“To relieve the taxpayers’ burden, the Pakatan Harapan government agrees to allow taxpayers who have outstanding tax refunds from IRB to make an application to set-off the amount against the tax payable for the current year.”

The set-off application needs to be submitted to IRB to be verified and approved while the remaining tax refunds will be carried out based on the government’s fiscal position.

“We hope that the failure to return RM16.046 billion of tax refunds is the last mega-exposé related to the misappropriation and misuse of taxpayers’ money by the previous government.” – August 22, 2018.

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Comments

  • Najib mismanagment of the country financial resources is really out of the norm and an unbelievable humongus act never in the world history of malfeasance. It is peremptory that immediate justice is served , done by public hanging or execution by a bullet to his head or public lynching and ultimately buring on the stakes. He do not anymore deserve any mercy from the Rakyat

    Posted 7 years ago by Lee Lee · Reply

  • Shameless Najib will pleased ignorance or accuse Guan Eng of having spent the money and then ask him to provide proof. Of course, this has nothing to do with robbery - just hutang. Please remember, a muslim does not lie. And it is all there somewhere in the consolidated funds, and some UMNO member's safes and personal accounts.

    Posted 7 years ago by Roger 5201 · Reply

  • Umno thought they'll never lose the goverment, will be in power as long as the Malays of umnoBN and pas are stupid!...........urban Malays are now educated and does not need umno.

    Posted 7 years ago by Azis Yusoff · Reply

  • Prime minister and finance minister must not be the same person, better still not from same party, and much better, pm is just pm, nothing more.

    Posted 7 years ago by Roger Tan · Reply

  • If he is prepared to issue a public statement, that already is saying the the 19b plus this new 16b shitt is a criminal breach of trust involving the highest power in FinMin and Treasury.

    But talk is cheap. If they havent charged Makcik Cincin yet, dont expect the police to catch serigala and the scumbag pack. In another country, these crooks are long in high voltage
    Prisons.

    Posted 7 years ago by Jahat sangat · Reply

  • Due process first..

    Posted 7 years ago by MELVILLE JAYATHISSA · Reply