Kedah FA hit with RM10.4 million tax bill

Kedah FA hit with RM10.4 million tax bill

Unpaid taxes since 2014 falls on Kedah government’s lap, says menteri besar.

Muhammad Sanusi Md Nor putting on the Kedah FA jacket after taking over as its president, in July last year. (Bernama pic)
ALOR SETAR:
The taxman has come after the Kedah government over RM10 million in unpaid taxes, mostly of import players in the state football team, menteri besar Muhammad Sanusi Md Nor said today.

He said the Inland Revenue Board (LHDN) had sent a bill of RM10.4 million claiming unpaid taxes from the Kedah players since 2014. One player alone has RM1.78 million in unpaid taxes.

Sanusi said that when he asked LHDN why they did not go after the Kedah FA (KFA) earlier on, they said the football association was “not cooperative” with the tax authorities back then.

He said it appears that the LHDN was asking for the dues now after his government diligently paid RM15 million in salaries since he took over as menteri besar.

“Is it because I am paying all that the taxmen are coming after my administration? We will be applying for a hapuskira (write-off) of these taxes. They should have demanded this earlier on,” he said.

Earlier, state executive councillor Mohd Firdaus Ahmad (PN-Kuah) told the Kedah assembly that LHDN reviewed the due taxes on wages paid by KFA between 2014 and 2019. He said that prior to that, KFA had paid RM3.4 million in taxes.

Sanusi said that when he assumed the role as KFA’s president in July last year shortly after becoming menteri besar, he had cleared an issue of RM15 million in outstanding salaries to players.

Sanusi said he had then asked for the LHDN and Employees Provident Fund dues to be rescheduled.

He said the latest RM10.4 million tax shock came when they applied for new player licences for the new season.

He said licences are given out once the LHDN gives the okay to the Football Association of Malaysia and the Malaysian Football League.

Kedah finished second in the Malaysia Super League after Johor. Penang were third.

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