Company fined after failing to file tax returns

National 1 minute, 49 seconds


A COMPANY was fined $5,000 after pleading guilty to failing to submit its income tax return particulars for several years.

Q R Sdn Bhd admitted that over a five-year period between 2009 and 2013, they had failed to file the particulars after notices were issued to them by the Collector of Income Tax.

The court document states that the company was given 30 days to comply with a final notice issued to them on March 7, 2015.

However, after 30 days, the Revenue Division of the Ministry of Finance hadn’t received the required documentation or heard anything from the company. The division checked and found that all the notices had been returned as there didn’t seem to be anyone at the address.

In June 2015, officers from the Revenue Division made a site visit to the company’s registered address and found a member of the staff who said the company keeps the gates closed for security purposes.

On July 9, 2015, a meeting was set up with the director’s representative to whom the Revenue Division explained the situation to.

The information was later relayed to the director who then promised to provide the required documentation to the Revenue Division in three weeks’ time.

On August 29, 2015, the Revenue Division received a letter from the company to inform them that it had just appointed a new auditor to handle the preparations of the accounts.

The Revenue Division gave a deadline of September 10, 2015, for the company to submit the required documentation for the years they missed filing their particulars.

However, as of September 10, 2015 the company had still not submitted their income tax returns and have since failed, without any reasonable excuse, to furnish the Revenue Division with the return of income and particulars form.

The form is required for the purpose of ascertaining the income tax of the company as required for all companies pursuant to Section 52 of the Income Tax Act (Chapter 35).

Failure to comply with section 52 of the Income Tax Act, Chapter 35, is an offence under section 78(1) of the Income Tax Act, Chapter 35, which carries a $10,000 fine.

Following sentencing yesterday at the Magistrates’ Court, the company was ordered to pay the fine within a four-month grace period.

The Brunei Times