Customs denies owing millions to Selangor local councils

SEPANG: Claims for the Good and Services Tax (GST) returns totalling RM36mil, made by 12 Selangor local authorities in 2016, were filled with discrepancies, said Customs director-general Datuk Seri T. Subromaniam.

He said this was why the department did not pay the returns claimed by the local councils.

Subromaniam said some of the claims were unfounded while some were not allowed under the law.

“If the claims are not correct, how can Customs pay them?” Subromaniam told a press conference during the department’s get-together session with the media here yesterday.

Early this month, Balakong assemblyman Eddie Ng Tien Chee claimed that Customs owed the 12 local councils millions in tax returns.

Ng said the Customs Department had failed to pay the tax refund claims since June 2016.

Subromaniam warned that those who make false claims or paid less tax can be charged in court.

“My advice to all local councils is to ensure their GST claims are authentic. If you have any problems, you can always seek advice from our officers,” he added.

Subromaniam said Ng’s allegation had painted a bad image of the Customs Department as it was widely published without any clarification from the department.

“Do not blindly accuse us. We have already contacted the 12 local councils to inform them of the discrepancies, but they have yet to respond to us,” he said.

Subromaniam said the department has given the local councils three months to settle the issue with the department.

“Our ultimate objective is not to punish. We give them time and chance to resolve this matter properly,” he said.