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IT company says employee’s tax paid, arrest warrant withdrawn

 | May 23, 2017

Executive with IT company responds to report, says director from India not liable anymore, blames it on miscommunication with income tax office and court.


PETALING JAYA: An IT company has responded to a report published last week stating that an arrest warrant had been issued over the alleged non-payment of an expat employee’s outstanding income tax.

Majesco Sdn Bhd said the warrant of arrest has since been withdrawn and the demand for the outstanding income tax has been dropped after the amount was duly settled.

Majesco executive Vinuvarma issued a statement to FMT explaining that the arrest warrant was issued to his company director Aminuddin Bushra, 51, due to miscommunication.

He said that upon receiving the court summons, seven years after the employee had returned to India, he (Vinuvarma) had gone to court on May 13, where the judge had given them until May 17, 2017 to settle the outstanding payment.

“We received the payment cheque from India and had made the payment on May 15, 2017,” Vinuvarma said.

He said that in the days proceeding the due date, there had been no communication from both the income tax office, nor from the court instructing him to appear in court again on May 17, 2017.

Vinuvarma said that as neither he nor Bushra had appeared in court on May 17, the judge had issued the warrant of arrest for Bushra, as the director of the company.

“Since then, the income tax office has provided a clearance letter, stating that the outstanding payment was made.

“The case has also been withdrawn and the arrest warrant will be cancelled,” he said.

On May 18, FMT had reported that a warrant of arrest had been issued against Bushra for not attending court proceedings over the outstanding income tax payment for the Majesco employee.

The Inland Revenue Board (LHDN) said under subsection 83(5) of the Act, employers are required to pay taxes from money or benefits withheld by the employer for employees who are leaving Malaysia with no intention of returning.

If convicted, the company directors would be liable for a jail term of up to six months, or a maximum fine of RM20,000, or both, the report said.

In April, LHDN took out a warrant of arrest against a young actress who failed to show up at the Shah Alam magistrate’s court over non-payment of taxes.

LHDN had said the unnamed 23-year-old had allegedly failed to file her tax returns for the assessment years of 2009, 2010, 2011, 2012 and 2013.

LHDN is cracking down hard on tax evaders this year.

Arrest warrants against 2 directors for not paying employees’ taxes


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