Former Director, Company Fined RM15,000 For Failing To Pay Service Tax

MELAKA, Aug 1 (Bernama) -- A former director and his company were fined RM15,000 by the Ayer Keroh Sessions Court today for failing to pay service tax and penalties amounting to RM139,755.25 between 2021 and 2023.

Judge Haderiah Siri imposed the sentence after Ng Wen Hua, 31, and Go Lounge Sdn Bhd pleaded guilty to five charges. She also ordered a one-month jail term in default for each charge should they fail to settle the fine.

According to the charges, Ng and the company failed to pay service tax within the stipulated period, as required under Section 26(4) of the Service Tax Act 2018.

The unpaid service taxes ranged from RM19,000 to RM30,000, with penalties between RM3,000 and RM12,000.

The offences were committed at the Royal Malaysian Customs Department, Wisma Kastam Negeri, Ayer Keroh, on Feb 1, April 1, Aug 2, 2022, as well as on Oct 3 and Dec 1, 2023.

The charges were brought under Section 26(8) of the Service Tax Act 2018 (Act 807), read together with Section 78(1)(a) of the same Act, which carries a fine of up to RM50,000, imprisonment of up to three years, or both upon conviction.

Royal Malaysian Customs Department prosecuting officer Mohammad Azhar Habib, who conducted the proceedings, urged the court to impose a fine of RM5,000 for each charge, citing the accused’s record of non-compliance with tax payments and the fact that the offence involved loss of government revenue.

The accused, who was unrepresented, pleaded for the minimum fine, saying the business was no longer in operation.

-- BERNAMA