It said in a statement that it conducted an enforcement operation against the company yesterday at several locations in the Klang Valley, including its business premises and the residence of the company’s director and an auditing firm.

“Searches were conducted to obtain documents and evidence related to tax non-compliance.

“Initial investigations revealed that the company failed to report actual income from sales transactions amounting to RM70 million,” it said.

The case is being investigated under Subsection 112(1A) of the Income Tax Act (ITA) 1967, involving the company, and Paragraph 113(1)(a) of the ITA 1967, involving the company’s directors.

“(This operation) was in line with the government’s efforts to combat cartels and smuggling syndicates, which have been entrenched for decades to the detriment of national revenue,” LHDN said.

It said that the tax evasion cases currently under investigation and those which will be brought to court include cases of gold mining activities, scams, misuse of welfare status to conceal transactions, gambling proceeds, other illegal activities, as well as businesses owned by foreigners which failed to declare income.

“This step demonstrates LHDN’s continued commitment to ensuring that every party complies with tax regulations, and to curbing leakages in national revenue.

“LHDN remains firm in upholding the integrity of the country’s tax system and will not compromise on any attempt to evade taxes. It will ensure that all parties fulfil their tax obligations, for the well-being of the nation and its people,” it said.

LHDN CEO Abu Tariq Jamaluddin, when contacted, confirmed the operation, saying it formed part of LHDN’s efforts to strengthen tax compliance, particularly in sectors involving high-value transactions such as luxury vehicles.

“Non-compliance involving large sums not only undermines national revenue, but also compromises the fairness of the tax system, and should not be taken lightly,” he said.