Poor internet connection is among the reasons given by companies which failed to submit their GST03 statement to the State Customs Department.

Other reasons include resignation of staff handling the filing of the GST statement and not knowing that they have to submit the statement, State Customs Department director Datuk Dr Janathan Kandok said.

Speaking to reporters at Wisma Kastam here yesterday, Janathan disclosed that there were 23,711 GST registered companies in Sabah and of the total, 2,829 or 11.93 per cent had failed to submit the GST03.

Among these companies are restaurants, sundry shops, contractors and hardware businesses, he said, adding that from the 2,829 establishments, 362 companies have been found to have committed offences under Section 41(6) and Section 184 (4) of the Goods and Service Tax Act 2014.

“From the 362 companies, 28 cases have been brought to court, 45 companies compounded and 291 still under investigation. If found guilty, the offender is liable to a maximum fine of RM50,000 or not more than three years’ jail or both,” he said.

Janathan disclosed that under Section 41(6) of the GST Act 2014, companies that fail to submit their GST03 statement can be compounded RM1,000 for the first offence and RM2,000 for the second offence.

If they commit the third offence, they will be charged in court, he said.

“The Customs Department therefore is advising those who have yet to submit their GST03 statement to do so immediately. They have to remember that this is now managed by a computerised system called GenTax which means that even if they are one second late in submitting the statement, they are deemed to be late and will be penalised,” he stressed.

To those who do not have good internet connection, they can come to the Customs Department at Tanjung Aru Plaza to use the facilities there, Janathan said, adding that GST clinics are also conducted on a daily basis there to assist those who need to learn how to use the system.

“We will be going after those who have yet to submit their GST03 statement,” he said and disclosed that most of these companies are located out of the state capital.

He also said in the Customs Blue Ocean Strategy (CBOS) which was carried out from September 1 2016 to December 31 2016, a total of 1,135 companies were verified and of the total, 33.33 per cent were in non-compliance with GST Act 2014.

The companies verified are in Kota Kinabalu, Sipitang, Ranau, Kudat, Tamparuli, Tuaran, Papar, Lahad Datu, Sandakan, Tawau and Keningau.

He disclosed that 187 companies had and were being fully audited and among the offences they hadcommitted were not keeping records, not submitting the GST03 statement, failure to pay their taxes on time and not giving accurate information.

“As a result of CBOS, the State Customs Department succeeded in collecting RM45 million. Our objective was to track down the leakages in the state government’s revenue and our target was RM30 million but we made more than that,” he said.

According to Janathan, CBOs will be continued in Sabah as it is aimed at plugging leakages of the state’s revenue.

Source:
courtesy of THE BORNEO POST

by Nancy Lai

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