MACC probing massage parlour chain over 2-tier accounting system

The company, which has 32 outlets nationwide, is suspected of failing to pay taxes of about RM7.56 million a year.

An MACC source said those remanded comprised company directors and senior management staff arrested around the Klang Valley and Putrajaya yesterday.

PETALING JAYA:

 The Malaysian Anti-Corruption Commission has remanded five people in an investigation into corruption and money laundering at a leading massage parlour chain.

An MACC source said the anti-graft agency and the Inland Revenue Board (LHDN) are investigating the massage parlour chain, which has 32 outlets nationwide and is believed to have been operating since 2023, for allegedly practising a two-tier accounting system.

The source said most of the company’s cash sales are unreported, resulting in an estimated tax leakage of about RM7.56 million a year.

The investigation also found evidence of bribes paid to enforcement officers and local authorities to facilitate the company’s operations and as protection money, the source said.

MACC has frozen about RM11.5 million in 121 personal and corporate bank accounts related to the company.

Five commercial premises worth about RM7.3 million, two industrial properties valued at about RM2.3 million, seven residential properties with an estimated value of RM7.7 million, and five luxury vehicles costing about RM1.5 million have been seized.

The source said the assets, located in the Klang Valley and Johor, are suspected to be proceeds from money laundering.

The suspects, comprising company directors and senior management staff of several business entities, aged between 30 and 50, were arrested around the Klang Valley and Putrajaya yesterday.

Magistrate Ezrene Zakariah today approved a four-day remand order for four suspects until Jan 31, while one other suspect was remanded for three days until Jan 30.

MACC special operations division senior director Zamri Zainul Abidin confirmed the investigation. - FMT