By M. KRISHNAMOORTHY

KUALA LUMPUR: The number of tax defaulters increased by almost 10 times within two years, from 25,160 in 2003 to 239,666 last year.

The use of technology had assisted the Inland Revenue Board (IRB) to track down more defaulters.

Last year’s figure was the highest number of summonses issued by the IRB.

Zainol Abidin: ‘The software is programmed to screen and list out tax offenders’

The offences included failure to submit returns, declaring false entries, not providing information or bank statements, and retention of money by employers collected from their workers purportedly to pay their tax.

As of this May, a total of 21,251 civil summonses were issued amounting to RM8.17bil, and these included nailing those people who had not paid taxes.

IRB chief executive officer Tan Sri Zainol Abidin Abdul Rashid attributed the success to the efficient running of the Information Technology system which was able to track irregularities and criminal offences from income tax returns filed.

“The computer software is programmed to screen and list out tax offenders. When the printout is made, the enforcement officials can vet the list of offenders under different criminal breaches.

“The offenders who were listed out by the system include big and small fish covering all types of professions and businesses.”

The information system has also facilitated the IRB to target thousands of potential taxpayers who had failed to file tax returns or dodged paying taxes.

He said that the IRB was able to capture more tax offenders through intensified enforcement, improved systems and restructuring of the organisation and procedures.

“Our enforcement is aimed at also educating those who have not or do not know how to file a tax return.

“In our business survey, the IRB has also been able to track down more offenders,” Zainol Abidin said.

On e-filing, Zainol Abidin said a total of 184,603 taxpayers have used the online service.

When asked about complaints on IRB officials escorted by heavily-armed police during its recent check on businessmen in Petaling Street here and in Klang, Zainol Abidin said that it was a normal business survey.

“We wanted to find out whether those businessmen were registered as taxpayers and advise them on how to pay their tax.

“It was a routine inspection to widen the taxpayer base.

“By pulling up the offenders, the IRB is being fair in collecting taxes,” he added.