Customs Department to audit GST-registered firms from Sept 1
The Royal Malaysian Customs Department will launch the Customs Blue Ocean Strategy Operation (Ops CBOS) in phases from Sept 1 to audit companies registered for the Goods and Services Tax (GST).
Director Datuk Seri Khazali Ahmad said that about 50,000 companies have been identified in the first phase. “The audit is to ensure that they are on the right track”, he said.
“There are 420,000 companies registered for the GST. After implementation of this new tax regime one-and-a-half years ago, we want to ensure everything is being done in the correct manner. We will initially start with these 50,000 companies, which we have randomly selected. The next batch for the exercise will be in March next year,” he added.
He told reporters this at the GST Conference 2016, organised by the Malaysian Institute of Accountants, and launch of the Ops CBOS.
Khazali said the first phase of the Ops CBOS will involve 1,500 customs officers and will run till the end of the year.
For the start, the Customs Department will place their main focus on high risk clients such as retailers, restaurants, B2C businesses, etc.
Some people may wonder why are they selected for the GST audit sampling by the Customs Department. The intelligence automated system may have selected your company based on the following criteria:
– different result and performance compared to your competitors in the same industry
– frequently demonstrating poor or late lodgement of GST returns
– frequently submitting wrong information by ticking off the wrong option boxes in the GST return forms
– regular amendment in GST returns filed with the Customs Department
– refund position in GST returns submitted to the Customs Department
– complaints received by the Customs Department
– randomly selected by the system
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