Latest news with #LHDN
The Sun
2 days ago
- Business
- The Sun
RM500 million worth of illegal e-waste seized in nationwide raid
KUALA LUMPUR: Authorities have raided 57 illegal e-waste processing premises across the country under the integrated Hazard 2.0 operation, conducted from June 16 until 2pm today, with total seizures estimated at RM500 million. Bukit Aman Internal Security and Public Order Department director Datuk Seri Azmi Abu Kassim said the operation involved the police (PDRM) in collaboration with the Department of Environment (DOE), Inland Revenue Board (LHDN), and nine other agencies. According to LHDN, the operators of these premises are believed to have evaded taxes amounting to more than RM500 million. 'The seizures include RM240 million in e-waste, RM182 million in components, RM50 million in scrap items, and RM32 million involving other offences. The estimated tax evasion amounts to RM500 million,' he told a press conference at Bukit Aman here today. A total of 916 individuals were questioned during the raids, leading to the arrest of 453 people – 382 men, 70 women, and one teenager – aged between 16 and 70. Azmi said seven of the 57 premises had valid licences to process e-waste, but the owners will still be investigated as the licences only allow for the processing of locally generated waste. He also revealed possible information leaks before the operation, which may have prompted some operators to shut down in advance. 'Initial intelligence pointed to more targets, but many premises had closed before we arrived. This raises the possibility of leaked information,' he said, adding that the Malaysian Anti-Corruption Commission (MACC) may be involved in future investigations to identify any breach. Since the first e-waste operation began on Jan 1, a total of RM5.18 billion worth of e-waste has been seized, with 1,061 arrests and 167 investigation papers opened. Azmi added that Malaysia is a signatory to the Basel Convention, which prohibits the import of electronic waste for processing. Investigations are ongoing to determine whether the seized waste was sourced locally or brought in illegally. Meanwhile, DOE enforcement director Rosli Zul said there are currently 156 licenced e-waste processing facilities nationwide, all of which are only permitted to handle waste generated domestically. 'Malaysia continues to be targeted by foreign countries for illegal e-waste disposal. To date, 600 containers have been detained at Port Klang for entering without proper authorisation,' he said, adding that port enforcement is handled by the Royal Malaysian Customs Department.
Barnama
2 days ago
- Barnama
RM500 Million Worth Of Illegal E-waste Seized In Nationwide Raid
KUALA LUMPUR, June 19 (Bernama) -- Authorities have raided 57 illegal e-waste processing premises across the country under the integrated Hazard 2.0 operation, conducted from June 16 until 2pm today, with total seizures estimated at RM500 million. Bukit Aman Internal Security and Public Order Department director Datuk Seri Azmi Abu Kassim said the operation involved the police (PDRM) in collaboration with the Department of Environment (DOE), Inland Revenue Board (LHDN), and nine other agencies. According to LHDN, the operators of these premises are believed to have evaded taxes amounting to more than RM500 million. 'The seizures include RM240 million in e-waste, RM182 million in components, RM50 million in scrap items, and RM32 million involving other offences. The estimated tax evasion amounts to RM500 million,' he told a press conference at Bukit Aman here today. A total of 916 individuals were questioned during the raids, leading to the arrest of 453 people – 382 men, 70 women, and one teenager – aged between 16 and 70. Azmi said seven of the 57 premises had valid licences to process e-waste, but the owners will still be investigated as the licences only allow for the processing of locally generated waste. He also revealed possible information leaks before the operation, which may have prompted some operators to shut down in advance. 'Initial intelligence pointed to more targets, but many premises had closed before we arrived. This raises the possibility of leaked information,' he said, adding that the Malaysian Anti-Corruption Commission (MACC) may be involved in future investigations to identify any breach. Since the first e-waste operation began on Jan 1, a total of RM5.18 billion worth of e-waste has been seized, with 1,061 arrests and 167 investigation papers opened.
The Star
3 days ago
- Business
- The Star
Put tax changes on hold, engage stakeholders to ensure clarity, urges former Sabah CM
KOTA KINABALU: The government should pause further tax changes and first engage with stakeholders to restore clarity, affordability, and ease of compliance, says a former Sabah chief minister. Datuk Seri Yong Teck Lee, who leads the Sabah Progressive Party, said recent policy shifts have confused both consumers and businesses. 'This is not just about paperwork. Harsh and unclear enforcement risks destroying small businesses and livelihoods,' he said in a statement Tuesday (June 17). Yong was referring to the recent government announcements involving the revised sales and service tax (SST) structure — which expanded SST coverage from 6% to 8% for certain services starting March 1 — as well as upcoming e-invoicing requirements, fuel subsidy rationalisation plans, and stamp duty adjustments. He said tax enforcement was pressing ahead despite unclear guidelines and fragile economic conditions. He outlined three key principles that should guide any tax system — clarity in rules, affordability of rates, and predictability in enforcement. 'People must be able to understand their obligations without confusion. Rates must be reasonable, especially when so many are already struggling. And enforcement must not punish those trying to comply,' he said. He added that the ongoing changes fail to meet these principles, undermining trust, deterring investment, and worsening hardship for families and small enterprises. Yong also called on the Inland Revenue Board (LHDN) to hold off on enforcing the new tax rules until proper procedures are in place and businesses are financially ready to comply.
The Star
4 days ago
- Business
- The Star
LHDN launches Op Metro 3.0 to boost tax compliance in Klang Valley
PUTRAJAYA: The Inland Revenue Board (LHDN) has launched Op Metro 3.0 to strengthen the culture of tax compliance among taxpayers through a more strategic and focused approach. The operation, which runs until June 20, is being conducted simultaneously around the Klang Valley with the involvement of various departments under LHDN. This includes the Tax Compliance Sector, Investigation Sector, Revenue Collection Department, Intelligence and Profiling Department, Digital Department, and Strategic Compliance Branch. 'Op Metro 3.0 is a continuation of Op Metro 2.0 held in February. 'This time, we are mobilising 590 officers and have identified 682 cases for action,' said LHDN chief executive officer Datuk Dr Abu Tariq Jamaluddin ( pic ) in a statement yesterday, Bernama reported. He said the operation was also joined by the Companies Commission of Malaysia (SSM) to monitor corporate compliance, making it SSM's second involvement after Op Rejang was carried out in Sarawak in April. Targeted sectors for Op Metro 3.0 include construction, manufacturing, services, consultancy and wholesale trade. The operation focuses on four key activities, namely, audit, collection, taxpayer verification and strategic compliance. 'Our focus is clear: firm against those who deliberately violate the law, tolerance and guidance for unintentional errors, and appreciation for compliant taxpayers,' said Abu Tariq. He stressed that LHDN's main mission is to make tax compliance a culture rather than a burden, adding that appropriate action will be taken against defaulters. Also present at the launch of Op Metro 3.0 were SSM CEO Datuk Nor Azimah Abdul Aziz and deputy CEO (Regulation and Enforcement) Amir Ahmad, as well as senior management of both agencies. LHDN is optimistic that strategic cooperation between enforcement agencies will continue to be strengthened in ensuring that tax policies are implemented well. 'Through the integration of expertise and resources, we are confident that tax policy implementation will be more efficient, extensive and structured,' Abu Tariq said. Any enquiries can be directed to the Hasil Contact Centre at 03-8911 1000, via HASiL Live Chat, or through the feedback form on HASiL's official portal at
Focus Malaysia
13-06-2025
- Business
- Focus Malaysia
Stamping of employment contract: Is it necessary?
ON June 6, the Inland Revenue Board of Malaysia (LHDN) has clarified the stamp duty treatment of employment contracts. In its official media statement, LHDN outlines how employment contracts will be treated across three key timeframes below, helping employers and HR professionals navigate the complexities of compliance: Contracts executed before 1 January 2025 are exempt from stamp duty and no penalties for late stamping will be imposed. are exempt from stamp duty and no penalties for late stamping will be imposed. Contracts executed between 1 January 2025 and 31 December 2025 are subject to stamp duty, but no late stamping penalties apply if stamped within the year. are subject to stamp duty, but no late stamping penalties apply if stamped within the year. Contracts executed from 1 January 2026 onwardswill be fully subject to stamp duty and late stamping penalties. This announcement has raised questions about whether stamping employment contracts is necessary at all. In many jurisdictions, including Malaysia, it is not a common practice to stamp employment agreements. Admissibility, not validity Stamp duties are imposed on instruments and 'instrument' includes every written document under the Stamp Act 1949. The Act provides that instruments which are not duly stamped are inadmissible as evidence in court. The Federal Court in Malayan Banking Bhd v Agencies Service Bureau Sdn Bhd & Ors [1982] 1 MLJ 198 held that the unstamped document only affects the admissibility of the document in evidence and does not invalidate the document: 'The purpose of the Stamp Ordinance 1949 is to impose and to collect taxes on legal and commercial documents by compelling these documents to be stamped on pain of being inadmissible…. a stamp objection really relates to the safeguarding the government revenue, … unless of course the lack of stamping goes to the root or the validity of the document itself or the case is a revenue dispute.' Hence, an unstamped document is not automatically void or invalid but rather, it cannot be used as evidence in judicial proceedings until the applicable stamp duty is paid, along with any penalties for late stamping. Late stamping penalty Effective from January 1, 2025 the late stamping penalty rates have been revised as follows: RM50 or 10% of the deficient duty, whichever is higher, if stamped within 3 months after the time for stamping; RM100 or 20% of the deficient duty, whichever is higher, if stamped after 3 months from the time for stamping. From a practical perspective, the monetary impact of late stamping for standard employment contracts is minimal, which is subject to a nominal stamp duty of RM10. Practical considerations and risks of delayed stamping Given the relatively low penalties for late stamping, some employers may opt not to stamp employment agreements at the outset, particularly where no immediate dispute is anticipated or where litigation appears unlikely. Instead, stamping may be deferred until the agreement is required for legal proceedings. While this may offer short-term administrative convenience or cost savings, such an approach carries several practical and legal risks that should be carefully considered: Delays in legal proceedings : An unstamped contract cannot be admitted as evidence in court until it has been properly stamped. This can be particularly problematic in urgent applications, such as for injunctions or interim relief, where an inability to rely on the contract may hinder the timely pursuit of legal remedies. : An unstamped contract cannot be admitted as evidence in court until it has been properly stamped. This can be particularly problematic in urgent applications, such as for injunctions or interim relief, where an inability to rely on the contract may hinder the timely pursuit of legal remedies. Adverse perception in disputes : Failure to stamp an agreement may give the impression of non-compliance or an attempt to evade statutory obligations, which could affect the employer's credibility. : Failure to stamp an agreement may give the impression of non-compliance or an attempt to evade statutory obligations, which could affect the employer's credibility. Penalties for non-compliance: Executing or signing a document chargeable with duty without the requisite stamping may attract fines. With the Stamp Duty Self-Assessment System set to be implemented on January 1, 2026 LHDNis expected to step up audit and enforcement efforts to ensure compliance. Despite these considerations, delayed stamping may still be legally viable for some employers, since late stamping penalty is still relatively low and there is a minimal risk of litigation. Nonetheless, both employers and employees are strongly encouraged to stamp employment contracts promptly to ensure full compliance and to avoid procedural or administrative complications should the agreement later be required in legal proceedings. ‒ June 13, 2025 Leonard Yeoh is a senior partner and Pua Jun Wen a senior associate with the law firm, Tay & Partners. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Bernama
