TAWAU: A company and its board of directors were fined a total of RM45,000 after pleading guilty to 15 counts of failing to furnish service tax payments involving more than RM150,000 between 2019 and 2021.
The Agensi Pekerjaan Sri Balung Sdn Bhd, Loo See Chiang, 46, Choi Kiong, 48, and Lim Ten Kiong, 42, pleaded guilty before Sessions Court judge Rosli Ahmad.
Choi became a board member after Lim left. Loo also appeared on behalf of the company.
For the first charge, the company, Loo and Lim, failed to make a service tax payment (including penalty) amounting to RM17,564.71 between March 1 and April 30, 2019.
For the rest of the charges, the company, Loo and Choi, failed to make service tax payments and penalties amounting to RM136,689.07 between Sept 1, 2019 and Dec 31, 2021.
The court imposed a fine of RM1,000 in default 10-day imprisonment for each charge.
The offences under Section 26(4) of the Service Tax Act 2018 and punishable under Section 26(7) of the same Act.
The punishment provides a maximum fine of RM 50,000, maximum imprisonment of three years, or both upon conviction.
According to the facts of the case, they did submit sales and service tax SST-02 to Sabah Royal Malaysian Customs Department according to the prescribed period but failed to pay the amount of service tax. They also failed to pay the penalties for late payment.
The taxable period for the SST return is every two months. Under the law, service tax payment must be made within 30 days from the end of the taxable period.
In mitigation, all of them asked for the lowest fine saying that their business was experiencing financial problems and was not fully operational.
In reply, Customs prosecuting officer Azizah Talibe who prosecuted the case urged for a deterrent sentence as a lesson to all the accused persons and other taxable person.
All paid their fines.