FEBRUARY 26, 2009
Besar Incorporated (MBI) today has directed Permodalan Negeri Selangor Berhad (PNSB) to submit to the Inland Revenue Board (IRB) a list of all benefits in kind the company has given to its employees in the past years. This directive was made following the discovery that PNSB has over the years failed to declared benefits in kind in the EA forms submitted to IRB .
Dato Menteri Besar Selangor, Tan Sri Abdul Khalid Ibrahim, who is the chairman of MBI and PNSB, said the move is to ensure that the state subsidiary does not run foul of the income tax laws. PNSB has over the years given its employees – including its Chairman, members of the Board of Directors benefits in the form of material, cash or both. Among the benefits include cars and drivers, as well as holidays for local and international destinations.
Holiday benefits are given to all staff while cars and dedicated drivers are provided only to Chief Executive cum Director, senior managers and managers. A group of advisors appointed by MBI is currently running an evaluation exercise on PNSB to enhance its performance. In the process it was discovered that the previous chairman Dato Seri Mohamad Khir Toyo in 2005 was provided a car (Toyota Harrier) and a driver in 2006. He used these benefits until he resigned as PNSB chairman in March 2008.
However none of these benefits were not included in the EA forms submitted by PNSB earlier. It was also pointed out that the petrol and vehicle maintenance of the Harrier was also paid by PNSB. The Menteri Besar is aware of the growing concern among PNSB employees on the financial implication due to the under declaration of the past EA forms. He urged the staff to be patient as they now will have to wait for the IRD to raise the additional individual assessment.
He also promised that PNSB will hence comply with all regulations stated in the Income Tax Act when submitting the EA forms.
OFFICE OF DATO MENTERI BESAR