IRB: GISB has not paid the last taxes; were previously fined

KUALA LUMPUR: The Inland Revenue Board has clarified that Global Ikhwan Services and Business Holdings (GISB), its associated companies and affiliated persons have not paid their taxes for the last tax year.

IRB said they had also failed to pay their taxes in recent years, but were audited more than 60 times and faced compound fines and tax penalties, all of which were paid.

In a statement, the IRB said this comes amid ongoing tax non-compliance investigations involving GISB.

The investigations, Inspector General of Police Tan Sri Razarudin Husain had previously revealed, revealed that GISB had never paid taxes.

“The statement refers to the last assessment year which is currently being investigated by the IRB in collaboration with the police.

“We would like to highlight that more than 60 audit reviews have been conducted by IRB on GISB, its affiliated companies and individuals with respect to previous review years.

“GISB, its affiliated companies and associated persons have incurred compounding fines and tax penalties for the audited assessment years, all of which have been paid by the respective taxpayers,” the report said.

IRB said it was actively conducting various enforcement activities, including tax assessments, audits, investigations and collections, to ensure that tax compliance remains at the highest level.

It added that no special treatment has been given to GISB or any related entities, and there is ongoing monitoring to ensure full compliance with tax laws, as is the case with other taxpayers.

IRB also said that the collaboration between the IRB and the police is aimed at completing the investigation based on new information and findings regarding tax issues for the current assessment year.

“Prosecution and penalties under the Income Tax Act 1967 will be taken against any violation of the relevant statutory provisions.

“As such, the IRB will continue its efforts to combat tax non-compliance to ensure fairness for all taxpayers while preventing national revenue leakage,” the report said.

On Wednesday, police said a joint investigation with the IRB found that GISBH never paid its taxes.

Police had also frozen millions of ringgit worth of land, assets and vehicles linked to the company, which was under investigation for child labor, abuse and exploitation, among other charges.

So far, they have also seized 38 vehicles worth almost RM4 million.

The Anti-Money Laundering Unit also seized RM882,795.94 cash from 138 bank accounts where fifteen of those accounts had been closed.

Among other frozen assets were 14 plots of land, while nine horses, 14 rabbits and three peacocks, RM18,650 cash and two watches worth RM600 were also seized.

GISB was at the center of the police investigation after September 11 raids on 20 care homes allegedly operated by them resulted in 402 children being rescued.

Subsequent screenings of the children revealed that many of them had suffered physical and emotional injuries.

During investigations, police also revealed that 13 of the children were also sodomized, which GISBH has since denied allegations of child exploitation and sexual abuse.

© New Straits Times Press (M) Bhd