The director of Ayam Wira Food Processing Sdn Bhd pleaded guilty to charges of wilful evasion under s 114(1)(b) of the Income Tax Act 1967 for making a false statement or entry in the corporate tax returns for YAs 2012 and 2013.
Based on the Inland Revenue Board (IRB)’s investigation, the company was found to have falsified purchase invoices from seven suppliers amounting to RM2,648,098 and RM374,448 for YAs 2012 and 2013 respectively. This led to an under-declaration of taxes amounting to RM662,024.50 and RM93,612.00 for YAs 2012 and 2013 respectively.
The court imposed a total fine of RM13,500 and penalty thrice the amount totalling RM2,266,909.50.
Source: IRB website, 14 June 2017