PUTRAJAYA: The Customs Department and the Inland Revenue Board (IRB) today inked a Joint Audit Programme Standard Operating Procedure (SOP) as part of efforts to tackle cases of tax non-compliance more effectively.
The Customs Department was represented by its director-general T Subromaniam, while the IRB was represented by its chief executive officer Sabin Samitah in signing the document.
Treasury secretary-general Mohd Irwan Serigar witnessed the signing and exchange of documents.
Among the objectives of the programme is to increase tax compliance among taxpayers in areas governed by both bodies, so as to contribute more to the country’s revenue.
It also seeks to enhance audit effectiveness through the sharing of information between both agencies.
“They can share information on the companies that have not paid the goods and services tax (GST) and the corporate tax, and those who under-declare and have compliance issues.
“We target the companies, after which a visit by both agencies can be jointly done.
“Appointments will first be made. It will not be a sudden visit. We are using a friendly approach,” Irwan said, adding that the officers will then advise the companies on how much they should pay.
Irwan was speaking to reporters after the signing ceremony at the finance ministry building here today.
The joint audit programme has also seen the establishment of a Joint Audit Committee, as well as a Joint Audit Implementing Committee, which will work together in the selection of cases, setting of the audit scope, preparation of the joint audit procedure and coordination of the actions of the audit team.
When asked which companies and sectors the two agencies would focus on, Irwan said the programme would cover all companies.
The audit will initially cover the Klang Valley and will be expanded nationwide in a month or two, he added.