Guan Eng: No more strong-arm tactics by IRB

Finance Minister Lim Guan Eng said today that the Inland Revenue Board will no longer be adopting "roughhouse tactics" against businesses found to default on taxes.

In his speech at the 18th National Tax Conference in Kuala Lumpur, Lim said the government has instructed IRB to stop its practice of conducting office raids, at times even accompanied by armed personnel.

"We have instructed that the past methods employed by the past government cannot continue.

"We know the last government was desperate so it used such strong methods, especially office raids, accompanied by security people armed with guns and weapons," said Lim in his address to over 2,000 participants of the annual conference co-organised by the IRB and the Chartered Tax Institute of Malaysia.

"There will be no more office raids accompanied by people with guns or weapons. But that doesn't mean we don't come for you if you don't pay your taxes," he stressed.

Moving forward, Lim said the IRB would instead conduct desk audits on businesses suspected of tax evasion.

"These matters can be discussed … We will not embarrass you.

"We will invite you to come to the IRB office to talk like civilised people," he said, adding that a failure or refusal to resolve any disputes could still result in the businesses being charged in court.

At a press conference later, Lim noted that the more "direct method" taken by IRB in the past could have resulted in a higher collection of taxes for the government.

Asked whether the government is confident of meeting IRB's target to collect RM134 billion in taxes this year, Lim said the real challenge lies in instilling public confidence that the IRB is acting in a fair manner, and the money collected will be used to benefit the people.

On the amount of unpaid taxes owed to the IRB, Lim said there is an ongoing review of the amount, based on the new collection strategy.

"There is a review going on.

"Let's go through discussions (with the businesses) but if they still don't comply … then we will go to court," he said.

Also present were Treasury secretary-general Ismail Bakar and IRB CEO Sabin Samitah.

-Mkini