15 banks in Malaysia with offshore transactions under IRB audit

CYBERJAYA: The Inland Revenue Board (IRB) is in the midst of auditing 15 banks with offshore transactions in an effort to collect hundreds of millions of ringgit worth of taxes.

IRB deputy chief executive officer (compliance) Abdul Manaf Dim said the auditing processes of the banks nationwide were among the big cases the board is hoping to solve soon.

“There is a possibility that the issue in question deals with transfer pricing, where profit distribution differs between those in offshore accounts and peninsular accounts.

“We have initiated checks and follow-up information from these banks,” he told reporters after attending the launch ceremony of the 2017 Op Mega at IRB headquarters here today.

He also added that the banks involved were both local and international banks.

He futher assured that IRB would deal with the cases until every relevant issue is resolved.

“We cannot settle these cases within this or next month. But it is placed under Op Mega.”

Op Mega is another operation conducted by the board to ensure that voluntary compliance of tax and national revenue continues to be prioritised.

The operation, although launched today, would see tax compliance efforts carried out for years to come.

One of the main initiatives, Abdul Manaf said while delivering a speech on behalf of IRB chief executive officer Datuk Seri Sabin Samitah, was education of taxing.

A total of 5,000 IRB members will meet the public to educate them on tax compliance, tax awareness and any new information regarding IRB.

Abdul Manaf said the board’s target of collecting RM127 billion in taxes this year was within reach, with almost RM109 billion collected with roughly one more month to go until 2018.

“Seeing the current trends, insyaAllah, we will reach our target,” he said adding that the board’s target of RM134.7 billion for next year will also be reacheable.