In a significant move to strengthen tax compliance across Klang Valley, the Inland Revenue Board (LHDN) and the Royal Malaysian Customs Department have launched Ops Metro 2024, a large-scale operation aimed at ensuring businesses adhere to tax regulations. The operation, announced by LHDN chief executive officer Datuk Dr. Abu Tariq Jamaluddin, will see over 1,000 officers from both agencies inspecting thousands of businesses over a four-day period from August 19 to August 22, 2024.
A Comprehensive Operation
Ops Metro 2024 is not just a routine check but a comprehensive initiative targeting various aspects of tax compliance. The operation will focus on five key activities: tax audits, investigations, collection efforts, legal actions, and extensive business census visits. This multifaceted approach is designed to improve both short-term and long-term tax compliance among businesses in the region.
According to Datuk Dr. Abu Tariq Jamaluddin, the operation is expected to include 3,969 business census visits. These visits are intended to expand the tax base by identifying service providers who should be registered with LHDN, thereby capturing more potential taxpayers.
Focus on the Cash Economy and Foreign-Run Businesses
One of the primary focuses of the operation is on businesses that operate within the cash economy, a sector often associated with tax evasion. The LHDN officers will be working to identify such businesses and ensure that they are brought into the formal tax system. Additionally, there will be a particular emphasis on businesses run by foreigners, ensuring that they comply with Malaysian tax laws.
Customs officers, on the other hand, will concentrate on expanding the tax base by registering new businesses that have the potential to contribute to the national revenue. The operation will not only target businesses already under the tax radar but also aim to bring more service providers into the tax system.
Raising Awareness and Enhancing Compliance
Beyond enforcement, Ops Metro 2024 also has an educational component. LHDN officers will engage with businesses to spread awareness about the importance of tax compliance. This educational outreach is aimed at reducing future tax evasion by helping business owners understand their tax obligations and the potential consequences of non-compliance.
“By increasing awareness and improving compliance, we hope to expand the tax revenue base, reduce the possibility of tax leakage, and enhance the overall efficiency of our national tax management,” Datuk Dr. Abu Tariq Jamaluddin emphasized during the launch.
Enhanced Collaboration and Safety Measures
The operation will be conducted with the cooperation of the Royal Malaysian Police (PDRM), ensuring that officers involved in Ops Metro 2024 can carry out their duties safely. This collaboration highlights the importance of the operation and the government’s commitment to cracking down on tax evasion and improving compliance.
Implications for Klang Valley Businesses
For businesses in Klang Valley, Ops Metro 2024 serves as a reminder of the importance of maintaining proper tax records and ensuring full compliance with Malaysian tax laws. The operation reflects the government’s broader strategy to increase revenue collection by closing gaps in the tax system and bringing more businesses into the formal economy.
Businesses that have been operating in the informal sector or underreporting their earnings should take this opportunity to regularize their tax affairs. The presence of LHDN and Customs officers over the next few days is not just about enforcement but also about offering businesses a chance to align with legal requirements before facing potential penalties.
Conclusion
Ops Metro 2024 is a significant effort by the Malaysian government to ensure that businesses in Klang Valley comply with tax regulations, thereby enhancing the efficiency and fairness of the national tax system. With thousands of businesses set to be inspected, this operation marks a major step towards reducing tax evasion and expanding the tax base in Malaysia.
