1. CBOS 3.0 conducted by Customs this year :
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2. CBOS 3.0 conducted by Customs this year :
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3. Malaysia online reported on Feb 2017:
The Royal Malaysian Customs Department has set a target to collect RM3 billion in Goods and Services Tax (GST) this year, through its Customs Blue Ocean Strategy (CBOS) 3.0.
Director-General Datuk Seri Khazali Ahmad said about RM1.5 billion was collected through CBOS 2.0 last year.
He said the department aims to inspect about 200,000 of the 433,000 GST-registered companies in the CBOS 3.0 operation from Feb until Dec 31.
“We launched this operation to increase the compliance level towards the GST, and primarily through education.
“We will now offer face to face advice to business owners rather than take the path of enforcement,” he told members of the media after launching the CBOS 3.0 at the Kelana Jaya Customs Complex here, today.”
Some 600 officers from the GST, Compliance and Enforcement unit would be involved in CBOS 3.0.
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4. Prosecution for GST fraud in Malaysia:
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5. Prosecution for GST fraud is more common in other jurisdictions:
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6. Source: http://www. straitstimes

7. Prosecution of other GST offences in Malaysia:
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8. Taxpayers are charged in sessions court:
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9. 12 companies in Sarawak have been slapped with fines totaling RM287,000 for committing offences under the GST Act:
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10. Source: http://www.thesundaily.my/news/1752442

11. Source: http://www. thestar. com

12. Source: http://www. thesundaily

13. Source: http://www. theedgemarkets

14. 2 types of tax audits
Desk audit - where tax audit is held at the IRB office and can be dealt with via correspondence
A taxpayer may be called for an interview at the IRB’s office if further information is required
Field audit - where tax audit takes place at taxpayer’s premise
Involves the examination of the taxpayer’s business records

15. The Do’s First things first: stay calm and do not panic
Be ready: For field audit, taxpayer will be informed through a notification letter before the field audit commences
Be co-operative, well mannered, fair and honest
Give full co-operation to the audit officer, including providing all the relevant information pertaining to the issue at hand
Provide reasonable facilities and assistance to enable the audit officer to carry out his duties
Provide responses to the queries posed by the audit officer

16. The Do’s (cont’d)
Taxpayer can request for tax agent to be present during an interview
If there are tax adjustments to be made, the taxpayer will receive a notification and will be given 21 days to state his view on the findings
If no objection is made within 21 days, the taxpayer is deemed to have agreed to the proposed tax adjustments.

17. Also, do..
Stay updated on development of the law (e.g. on the GST rules)
Clarify areas of uncertainty with the IRB/ RMCD
Strengthen internal controls
Focus on common risk areas (e.g. documentation, accounts payable, etc)
When in doubt, consult your tax agent or legal advisor

18. The Don’ts
Do not obstruct the audit officer from performing his duties. Such obstruction is an offence under Section 116 of the Income Tax Act 1967
Do not give any form of gifts to the audit officer
Do not transact any business with the audit officer during the audit process
Do not make any form of payments to the audit officer

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