PETALING JAYA: The Royal Malaysian Customs Department claimed that the full amount for the input tax credits under the Goods and Services Tax (GST) was not transferred into the trust fund account as only RM63.5 billion of the total refunds of RM82.9 billion being paid out for the period between April 1, 2015 and May 31, 2018, hence resulting in accumulative outstanding refunds of RM19.4 billion.
Director-General Datuk Seri Subromaniam Tholasy said in a statement that the Customs had sought for the RM82.9 billion during a meeting but the full amount had not been transferred into the trust fund.
As per the Goods and Services Tax Act 2014, all GST collection will be put into a consolidated fund in the interim before being transferred into a trust fund, from which refunds will be channeled to taxpayers.
According to Subromaniam, as at May 31, 2018, the trust fund had a shortfall of RM19.4 billion, which is also the amount of outstanding refunds to be paid out to taxpayers.
Former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah said that all GST proceeds were placed in the consolidated fund before being channeled to the trust fund to repay GST claims based on the request by the Customs.
Earlier today, he also lodged a report with the Malaysian Anti-Corruption Commission (MACC) over the alleged loss of RM18 billion meant for the refund of the GST.