PUTRAJAYA: Traders and businesses that abuse the Goods and Services Tax (GST) system should beware because the Customs Department has its eyes on them.
Customs deputy director-general Datuk Subromaniam Tholasy said those who manipulated the system would be called out.
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“The department has its methods of detection,” he said.
Customs opened 251 investigation papers on GST-related cases between April and September. Five cases have gone to court, said Subromaniam. These, he said, involved businesses or traders that did not collect GST despite being registered and those who failed to issue tax invoices.
Subromaniam said once the department detected manipulation, the accounts of the traders or businesses would be sent for auditing or investigation.
“I urge businesses to declare properly because the system is intelligent and will detect any form of manipulation,” he said.
Subromaniam said some businesses cheated by declaring that they exported products.
“Exports are zero rated so they don’t have to pay tax but Customs controls import and export, and we will double check on our system,” he said.
“Some people think they are very smart, not knowing that our system will find them out.”
Subromaniam said if these cases involved refunds, then those would be held back.
He said enforcement officers were on the field, checking that businesses complied with the regulations. In May, it was reported that some 3,000 Customs officers will go undercover to catch traders who flout GST regulations.
“Some traders still ask customers if they want invoices. What they don’t know is that sometimes these customers are our mystery shoppers,” Subromaniam said.
Apart from that, the mystery shoppers also checked on businesses that had not registered with the department, he said.
