Former tax agent fined RM20,000 for falsifying auditor's report

KUALA LUMPUR: A former tax agent was fined RM20,000 by the Alor Setar Sessions Court in Kedah after pleading guilty to a charge of falsifying the auditor's report in the audited financial statement of Zenith Global Marketing Sdn Bhd (ZGM).

The Companies Commission of Malaysia (SSM), in a statement, said Judge J. Jean Sharmila imposed the fine, in default of three months' jail, on Tan Boo Khee, 50, last Nov 21.

Tan paid the fine.

He was charged as the middleman between ZGM and an appointed audit firm, to have made a false statement on ZGM’s Financial Statement for the Financial Year ending 2019.

The statement referred to is a document required under Section 259(1) of the Companies Act 2016 (Act 777), regarding the material details which are the auditor's report in the column 'Independent Auditors' Report To The Members of Zenith Global Marketing Sdn Bhd' on pages 6 to 8 prepared in the name of SKL & CO which the accused knew was false.

Tan was charged with committing the offence at the SSM office, Alor Setar, Kedah on Oct 20, 2020, under Section 591 (2)(a) of the Companies Act 2016 (Act 777) which provides imprisonment not exceeding 10 years or a maximum fine of RM3 million or both upon conviction.

Based on the facts of the case, ZGM only realised that the company's financial statement and the auditor's report were prepared by the accused without the knowledge and consent of the auditor's firm following a query from SSM.

An investigation by SSM found that there was an injunction order issued by the Alor Setar High Court in 2018 against Tan prohibiting him from continuing to misuse the name of the audit firm.

The prosecution was handled by SSM prosecuting officer Nurul Husna Mohd Yusof, while Tan was unrepresented.

According to SSM, the statement was issued as a reminder to the public that legal action will be taken against any individual who is found to have given false or misleading statements, information or reports to an audit firm.

"An offence involving the misuse of another individual's identity is a serious offence that needs to be taken seriously," said SSM, adding that the agency is always consistent in regulating compliance with the provisions of the law while also ensuring that the corporate community is aware of business responsibilities and ethics. - Bernama

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Court , Alor Setar , SSM , ZGM , fine , former tax agent


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