The magistrates’ court ordered the suspects, believed to be a director and a finance manager of the auditing company, to be remanded for four days beginning today.

According to a source, they were arrested after being called to testify at the Malaysian Anti-Corruption Commission (MACC) headquarters, around noon yesterday.

“Both suspects were arrested because they are believed to be involved in preparing and declaring false financial reports of a company.

“The false financial reports were prepared to show the company having low revenue and profit so it could reduce the amount of tax due to the Inland Revenue Board every year,” he told FMT.

The source said they were remanded to assist in the investigation under Section 16 (b)(A) of the MACC Act for accepting or giving bribes.

It said MACC also raided several companies in Kuala Lumpur and Selangor, and seized various important documents including the firm’s financial reports, which were related to the case.

The MACC is still investigating the actual amount of tax evaded by the companies involved, it said.