Tycoons seem to get preferential treatment for income tax, says Utusan Malaysia

The Inland Revenue Board (IRB) seems to be more deferential with tycoons and mega-corporations and is believed to have given a RM100 million discount to a billionaire, reported Utusan Malaysia.

In addition to being given the hefty discount, the Umno mouthpiece reported that the billionaire was given instalments to settle arrears owed to it over an 18-month period.

Awang Selamat, the pseudonym for the paper's collective editorial voice, hoped the board would treat the common man in the same way.

Awang admitted that it did not know to what extent this story about a discount to a billionaire was true, but said there had been talk among certain parties about this particular incident.

Considering that this was a case which involved public interest, Utusan Malaysia urged the IRB to clear the air.

"Ordinary taxpayers have written appeal letters to the IRB to ask for a reduction of fine imposed for late tax payments, but it has been completely ignored by the IRB"

"When dealing with a billionaire, the IRD was apparently willing to offer a discount of more than RM100 million," Awang  wrote in the paper’s weekend edition, Mingguan Malaysia.

"This is an unheard of privilege and discount, which the ordinary rakyat have never heard of, let alone enjoyed."

"If it is not true, then issue a denial. If it is a genuine case, then the public deserves an explanation," Awang wrote.

Awang said if such leakage in the system was not handled with a firm hand, Malaysia could end up like Mexico, which has lost more than 30% of its revenue due to cheating and tax evasion.

"The IRD can collect more revenue if it was more efficient and less deferential when dealing with certain high-profile tycoons."

"It is strange that in Malaysia, the big fish are not prosecuted in court even though their wrongdoings were common knowledge."

Awang pointed out that in South Korea, even business magnate Lee Kun-hee, the chairman of the Samsung group, was prosecuted in court for tax evasion.

In July 2008, the Seoul District Court found Lee guilty of financial wrongdoing and tax evasion. He was fined US$98 million (RM318 million) and three years suspended jail sentence.

Awang also pointed out that the corruption practices among enforcement agency personnel in Malaysia was nothing short of horrifying.

This was especially in the case of subsidised diesel manipulation and smuggling, whether on land or at sea.

"On land, information is leaked about potential raids, involving a small group of personnel from a ministry and an enforcement agency.

"Investigations have revealed that the rank-and-file have more than RM1 million in their bank accounts while the senior officers have RM40 million.

"At sea, there are also officers who charge toll for every vessel which is smuggling diesel. Because of this, diesel smuggling is rampant."

Awang said the biggest winners were the illegal diesel "entrepreneurs" and the fishing boat operators.

- TMI