Deputy minister: I've always paid my dues to IRB

 

Amid allegations of unpaid tax arrears, Deputy Unity Minister Saraswathy Kandasamy stressed that she neither evaded from paying taxes nor sought to hide any of her source of income.

“That’s why I have lodged a police report to deny the allegations and asked the police to investigate the perpetrators behind the malicious act,” she said in a statement.

Earlier today, Malaysiakini reported that the deputy minister lodged a police report against former Bagan Dalam assemblyperson Satees Muniandy and local Tamil news portal Makkal Osai for allegedly spreading misinformation.

In the police report sighted by Malaysiakini, Saraswathy (above) denied Satees and Makkal Osai’s claim that she had an outstanding annual income tax payment arrears worth RM200,000.

"This false information, containing allegations, elements of slander and defamation, has been uploaded on Makkal Osai without any verification of the authenticity of the information.

"Satees has also made and circulated a video recording alleging that I have committed a tax crime," she said in the report.

Elaborating, Saraswathy said the issue began in 2017 when the Inland Revenue Board (IRB) decided to review her tax payments for the preceding 18 years - from 1999 to 2016.

Former Bagan Dalam assemblyperson Satees Muniandy

Despite finding no evidence of evasion, she claimed to have been imposed various charges and penalties for late submission or payment of the tax.

“For 2016 alone, I was imposed RM20,000 as a penalty for two months of delay in the submission of the tax return and another approximately RM20,000 tax hike for late payment,” she said.

Wrong address

Saraswathy added that instead of serving the notices for the claim to the correspondence address declared to IRB, it chose to serve them to her parent's house in Penang.

Further, IRB also proceeded to file an action for recovery in Penang.

“It obtained an order for substituted service instead of personal service under the pretext that 'l was not contactable' or 'l was not traceable' despite my legal firm actively operating in Kuala Lumpur, with IRB corresponding to the address given since 1998,” she stated.

Later, she was shocked to learn that IRB was close to getting a bankruptcy order against her without a single document being served.

“Upon hearing of the next hearing date, I went before the Penang Court Registrar and placed on record that I had not been served a single document to that date. The petition was then withdrawn with no explanation.

“As I was busy with so many other matters looming, I agreed to an amicable settlement. I had to rely on the documents from the department as the claim was backdated as far back as 1999,” Saraswathy said.

However, she acknowledged that at this juncture, IRB officers were cooperative and furnished all the documents requested to reconstruct her income file, especially for the period 10 years and earlier.

“They were kind and rendered all assistance knowing what had happened to me in this case was extraordinary. This was all before I was appointed deputy minister.”

Saraswathy then stated that as of Dec 31, 2023, she had settled all the claims except a small amount of the disputed portion - which she had confirmed in her letter to the IRB on Dec 29, 2023.

“Hence, there was no truth in the allegations made by the irresponsible people who are just trying to gain some political advantage.

“And I also sought justice based on the set procedures applicable to all citizens despite being a deputy minister and did not seek the prime minister’s intervention at all,” she stressed. - Mkini