Kota Kinabalu: A company and two of its directors were fined RM21,000 each for 21 counts of failing to pay service tax involving RM44,819.24 between 2018 and 2022.
Sessions Court Judge Egusra Ali meted out the sentenced to Everyday Gourmet Sdn Bhd, Tsen Pai Lin @ Lucy and Vickie Chu Kim Yee after pleading guilty to the charges against them.
The court ordered each of the accused to pay RM1,000 or two months’ jail for each count and also to pay the fully taxes and penalty amounting to RM1,611,427.45.
The company and directors failed to make the service tax payment during the prescribed period for 21 taxable periods between 2018 and 2022.
The offences under Section 26(4) of the Service Tax Act 2018 and punishable under Section 26(8) of the same Act provides for a jail term of up to three years, or fine of up to RM50,000, or both, on conviction.
According to the facts of the case, they did submit the sales and service tax SST-02 to the Royal Malaysian Customs Department during the prescribed period but failed to pay.
They also failed to pay the penalties for late payment.
In mitigation, counsel Syazwan Shah who defended the company and directors, asked for the lowest fine.
However, Customs Prosecuting Officer Azizah Talibe urged the court to impose a deterrent sentence as a lesson to the accused and other taxable persons.
They paid the fines.
