Businessman fined RM2.6mil for failing to submit annual income tax returns

KOTA KINABALU: A company director ended up paying more than three times he owed the Inland Revenue Board (LHDN) after he was found guilty for failing to file his income tax annual returns for two years.

The 59-year-old automobile batteries dealer Wee Yung Heow was slapped with a penalty of RM2.6mil and fined RM10,000 by a Magistrate’s Court in Lahad Datu.

Magistrate Ryan Sagiran Rayner Junior also imposed a three-month jail term if he failed to settle the amount.

Wee, who was assessed to pay RM882,000 for two years, was charged under Section 112(1A) of the Income Tax Act 1967 for failing to submit an income statement under Form C for the Assessment Years 2020 and 2021 without reasonable cause to LHDN.

LHDN prosecutor Mohamad Arif Hermansah told the court that Wee’s taxable income for the two years amounted to RM4.028mil and was to pay a tax of RM882,000.

With the special penalties imposed by the Magistrates Court, Wee will now have to pay up a total of RM3.53mil.

Wee, who is a director of Shiang Chin Motors Batteries Sdn Bhd, was assessed to pay a tax of RM460,777.92 for 2020 and RM422,148.48 for 2021, the court was told.

Sabah LHDN operations director Md Fahmi Md Said and Lahad Datu LHDN investigating officer Abdul Haya Langarai were also present at the court.