Latest news with #IRB
The Sun
2 days ago
- Business
- The Sun
Op Hazard 2.0: IRB to probe financial records of 57 raided e-waste premises
KUALA LUMPUR: The Inland Revenue Board (IRB) will scrutinise the financial records of 57 premises raided during the integrated Op Hazard 2.0 operation, launched on June 16 to crack down on the illegal processing of electrical and electronic waste (e-waste). IRB deputy chief executive officer (Compliance) Datuk Hisham Rusli said preliminary investigations discovered that the illegal e-waste processing factories had collectively evaded taxes exceeding RM500 million. 'Based on current information, several of the premises appear to be operated by the same owner, and we are investigating this further,' he said at a joint press conference with the director of the Bukit Aman Internal Security and Public Order Department (JKDNKA) today. Hisham said that from a taxation standpoint, illegal factories typically either fail to report their income or declare figures significantly lower than their actual earnings. 'We will thoroughly examine their financial records. What we've discovered is that these e-waste processing products are often re-exported at prices many times higher than their original value,' he said. A total of 57 premises involved in the illegal processing of electrical and electronic waste (e-waste) were raided nationwide during the three-day integrated Op Hazard 2.0 operation, with total seizures estimated at RM500 million. The breakdown of the seizures during the operation includes RM240 million worth of e-waste, RM182 million in e-waste components, and RM50 million in worn-out goods. Additionally, items linked to other offences were valued at RM32 million. The value of tax-related investigations stemming from the raids is estimated at approximately RM500 million.
![[UPDATED] IRB probes RM500mil tax evasion in illegal e-waste crackdown](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2Fewaste_Tax1906_1750322679.jpg&w=3840&q=100)
![[UPDATED] IRB probes RM500mil tax evasion in illegal e-waste crackdown](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fassets%2FNST-Logo%402x.png%3Fid%3Db37a17055cb1ffea01f5&w=48&q=75){kind=small}
New Straits Times
2 days ago
- Business
- New Straits Times
[UPDATED] IRB probes RM500mil tax evasion in illegal e-waste crackdown
KUALA LUMPUR: The Inland Revenue Board (IRB) will be combing through the financial records of the 57 premises at the centre of the recent joint crackdown on illegal e-waste processing. IRB deputy chief executive officer (compliance) Datuk Hisham Rusli said investigations suggest that these illegal processing plants have collectively evaded half a billion ringgit in taxes. "Based on the current information at hand, some of these premises were operated by the same owner," he told reporters at federal police headquarters today. The IRB was among 12 agencies supporting federal Internal Security and Public Order Department in its latest crackdown on e-waste, dubbed Op Hazard 2.0, which ran from June 16 until today. Hisham said there was a possibility that some operators either did not declare their taxes or had under-declared them. "We believe these premises were paid to receive e-waste. "Then they processed the e-waste and received further payments based on the various metals extracted from the smelting process. "Their financial records and accounts will all be analysed further," he said, adding that they believed the finished products were being shipped out, with the operators receiving large payouts. Federal police Internal Security and Public Order Department director Datuk Seri Azmi Abu Kassim said they would continue to involve the IRB in future operations targeting illegal e-waste activities.
![[UPDATED] Toxic take-down: Cops seize over RM500mil in e-waste crackdown](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2Fe-waste1906_1750321522.jpg&w=3840&q=100)
New Straits Times
2 days ago
- New Straits Times
[UPDATED] Toxic take-down: Cops seize over RM500mil in e-waste crackdown
KUALA LUMPUR: Authorities have seized over half a billion ringgit worth of e-waste products and equipment in the Federal Police's latest nationwide crackdown on illegal e-waste processing plants. The Inland Revenue Board (IRB), one of the supporting agencies involved in the operation, estimated that these premises had also evaded more than RM500 million in taxes. Bukit Aman's Internal Security and Public Order Department director Datuk Seri Azmi Abu Kassim said a total of 453 people were arrested during the most recent enforcement round, which targeted 57 premises on June 16. "A total of 12 agencies took part in the operation, dubbed Op Hazard 2.0, which was conducted from June 16 to today. It was led by the police in collaboration with the Department of Environment and the IRB. "We estimate seizures as well as losses to government revenue from this latest operation at RM1.003 billion, comprising RM240 million in e-waste, RM182 million in e-waste components, RM50 million in scrap materials, and RM32 million in other equipment," he said, adding that the IRB had estimated at least RM500 million in tax evasion by the operators. Azmi said that 916 people were screened during the integrated operation, resulting in 453 arrests — including 382 men, 70 women, and one minor — aged between 16 and 70. "From Jan 1, 2024 to till today, we have recorded total seizures valued at RM5.18 billion, with 1,061 arrests and 167 investigation papers opened in connection with e-waste activities under Op E-Waste 1.0, Op E-Waste 2.0, Op Hazard 1.0, and now Op Hazard 2.0," he said. The 57 raided premises were located in Selangor (16), Sabah (12), Kedah and Sarawak (6 each), Perak and Johor (5 each), Penang (4), Kelantan (2) and Terengganu (1) Of the 453 people arrested, only 41 were Malaysians. The rest were foreigners from China, Myanmar, Bangladesh, India, Cambodia, the Philippines, Vietnam, Indonesia, Pakistan, and Nepal. Azmi said intelligence had been obtained on more premises allegedly operating illegally, but on the day of the raids, many of them were found to be closed. "This raises concerns as to whether some operators may have been tipped off in advance," he said. He added that the police would be consulting the Malaysian Anti-Corruption Commission (MACC) to investigate the possibility of insider leaks.
New Straits Times
3 days ago
- New Straits Times
RM300,000 gone in a click: Kelantan faces spike in commercial crimes
KOTA BARU: Victims of commercial crime in Kelantan have lost up to RM300,000 in a single case, with many others suffering losses ranging from RM1,000 to RM3,000, as fraud and scam cases continue to surge this year. State police chief Datuk Mohd Yusoff Mamat said 601 commercial crime cases were recorded between January and May— a significant increase from 401 cases during the same period last year. He said cyber and multimedia-related crimes saw the sharpest rise, soaring by 70 per cent from 265 cases last year to 401 this year. "These figures are alarming. Despite ongoing awareness campaigns, many people are still falling victim to these scams, with some facing devastating financial losses," he told reporters. Mohd Yusoff said the most common scams included phone fraud, bogus job offers, and e-commerce scams. "There were 149 phone scam cases, with victims losing more than RM4 million collectively. As for e-commerce fraud, 141 cases were recorded, resulting in RM1.22 million in losses," he said. He said con artists frequently impersonated officials from enforcement agencies such as the police or the Inland Revenue Board (IRB), manipulating victims through fear or pressure to part with their money. "Even two doctors were conned recently, with combined losses exceeding RM200,000. In the worst case to date, a single victim lost over RM300,000. On the lower end, some suffered losses of between RM1,000 and RM3,000." He dismissed the notion that victims were put under a 'hypnotic spell' (pukau), stressing that the perpetrators instead use convincing, calculated tactics to deceive their targets. "Most victims are retirees or civil servants aged 40 and above. The scammers are very professional and persuasive," he said. Facebook was the platform most frequently exploited in e-commerce scams, accounting for 88 of the 141 cases, followed by TikTok, Telegram, and WhatsApp. "Some of these frauds are linked to organised syndicates and call centres, while others are the work of individuals," he said. Mohd Yusoff stressed the media's crucial role in amplifying public awareness and helping to safeguard the public from becoming victims.
New Straits Times
4 days ago
- Business
- New Straits Times
Efficient tax rules for contractors bring relief
KUALA LUMPUR: THE government has moved to streamline tax treatment on construction projects, offering a more practical and industry-aligned approach to profit recognition, in a breakthrough welcomed by the construction sector. The Master Builders Association Malaysia (MBAM) on Dec 6, 2021, formally appealed to the Finance Ministry to review the Inland Revenue Board's (IRB) longstanding practice of using the Certificate of Practical Completion (CPC) as the reference point for recognising profits or losses under the Income Tax (Construction Contracts) Regulations 2007 and Public Ruling No. 2/2009. MBAM argued that this approach did not reflect real-world business processes, as the CPC only certifies physical completion, while key financial elements such as variation orders, final costs and contractual claims often remain unresolved post-CPC. Requiring contractors to determine profit or loss at that stage could result in inaccurate tax filings and retrospective adjustments that risk penalties. To address the issue, MBAM proposed recognising project completion based on finalised accounts — either when no further costs are incurred and all payments are made, or within 18 to 24 months after CPC issuance. Through the Technical Working Group on Taxation (TWGT) under the Pemudah Special Taskforce to Facilitate Business, multiple engagements between the ministry, IRBM, MBAM and the Chartered Tax Institute of Malaysia (CTIM) were held between December 2021 and September 2023. This public-private collaboration yielded a practical resolution, where profit or loss recognition could now be deferred to the date final accounts are agreed between contractor and client, or 12 months after project completion — whichever is earlier. Penalties for revised tax returns arising from retrospective profit/loss adjustments will not be imposed, as confirmed through updated guidelines and future enhancements to IRB's public rulings. Following this, a Practice Note was issued on IRB's portal on March 29 last year and a comprehensive amendment to Public Ruling No. 2/2009 is underway, expected to be completed this year. This harmonised tax treatment aligns regulatory requirements with industry operations, supporting the government's Ekonomi Madani agenda to deliver more efficient, affordable housing and infrastructure. POSITIVE IMPACT The move has brought tangible benefits for contractors and construction firms, including improved cash flow management due to accurate tax assessments and reduced reliance on external borrowings, thus lowering business costs. The move also helps to free up financial resources for productivity-enhancing investments and allows greater certainty in tax reporting, reducing administrative and financial risks. MODEL FOR PUBLIC-PRIVATE PARTNERSHIP This success underscores the strength of public-private collaboration under Pemudah's framework, which is co-chaired by the economy minister, chief secretary to the government and a private sector industry leader. The Economy Ministry and the Malaysia Productivity Corporation serve as joint secretariats, while direction is provided by the National Economic Action Council, which is chaired by Prime Minister Datuk Seri Anwar Ibrahim. The initiative is also seen as a benchmark for effective policy reform that balances regulatory compliance with industry practicality, fostering long-term economic sustainability and competitiveness.
