MACC enlists taxation act as part of corruption prevention

Jan 11, 2017


The Malaysian Anti-Corruption Commission (MACC) will enlist the provisions in the Income Tax Act to strengthen efforts in combating corruption, said its Chief Commissioner Dzulkifli Ahmad.

This new initiative in fighting corruption and abuse of power comes after a Corruption-Free Pledge (IBR) was agreed upon and signed between MACC and the Inland Revenue Board (LHDN) here.

Dzulkifli said with the Act, the corrupt would no longer feel free to commit bribery as the current MACC Act and the Anti-Money Laundering Act had not deterred them from committing the crime.

“The corrupt think they do not have to declare their income to MACC but they cannot get away with it when LHDN is involved.

“They must remember that with the LHDN, it doesn’t matter if the income is obtained through legal or illegal means…as income accumulated from bribes will also taxed,” he said in his speech before the signing at the LHDN headquarters.

Also present was LHDN chief executive officer Sabin Samitah.

Dzulkifli was confident that the use of the three Acts would assist and further empower MACC’s efforts in fighting corruption while at the same time warn those who are corrupt that they would not be able to escape from legal action.

On the pledge signed today, he said apart from making history as the first government agency to sign the IBR, the agreement would ensure that the two agencies would work closely in combating corruption and sharing information on cases which were under investigation.

Dzulkifli said the move by the LHDN leadership and its employees to sign the IBR showed their sincerity, commitment and desire to serve in a conducive and corruption-free work environment.

Meanwhile, Sabin said the LHDN, as a self-financing organisation, had full control over its financial and human capital management, thus exposing it to malpractice risks especially in supply acquisition.

He said the agency also had a major responsibility in tax collection to ensure that revenue could be channelled towards developing the nation and in creating a level playing field in the economic environment.

In collecting taxes due, he said, LHDN faced challenges especially in ensuring maximum level of tax compliance, reducing tax leakages and expanding the tax base in accordance with Income Tax Act 1967 regulations and other related laws.– Bernama