Guan Eng: Regardless of Accounting System, RM16B Tax Refunds Still Missing

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The outstanding RM16 billion tax refunds that the government owes taxpayers still cannot be found in the refund account regardless of which accounting method is used, Finance Minister Lim Guan Eng said yesterday.

He disputed former prime minister Datuk Seri Najib Razak’s claims that the money, owed for more than six years to 1.65 million individuals and companies, was actually not missing because Najib’s administration used modified cash accounting, not the accruals accounting standard.

“According to LHDNM (Inland Revenue Board Malaysia) and verified by the National Accountant Department, which also uses modified cash accounting as stated by Datuk Seri Najib Razak, it was found that outstanding credit owed to taxpayers totalled RM16.046 billion as of May 31, 2018,” Lim said in a statement.

He accused former Treasury secretary-general Tan Sri Mohd Irwan Serigar of not transferring sufficient funds to the tax refund account (TBBC) as requested by LHDN.

“It must be stressed that under Section 111B(2) of the Income Tax Act 1967, only the Finance Minister has decision-making power over the amount of funds to be transferred from the consolidated accounts to the TBBC,” said Lim.

Najib said yesterday that under modified cash accounting, assets were not capitalised and liabilities were not recorded in financial reports.

The former finance minister claimed Lim was mistaken in saying that the previous Barisan Nasional government had misreported outstanding tax refunds as revenue. – Malay Mail

Earlier reports:

Aug 24, Bukit Aman to Question Irwan Serigar over Tax Refunds

Aug 22, Another Bombshell: More Than RM16B Tax Refunds Owed to Taxpayers