PNSB (Permodalan Negeri Selangor Bhd) has over the years failed to declare benefits in-kind in the EA forms submitted to IRB.
“Selangor MB Tan Sri 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,” the statement read.
According to the statement, PNSB has over the years given its employees — including its chairman and 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 the chief executive cum director, senior managers and managers.”
Citing former Selangor MB Datuk Seri Dr Mohamad Khir Toyo’s case, Khalid’s office said that Khir Toyo was provided a car (Toyota Harrier) in 2005 and a driver in 2006.
“He used these benefits until he resigned as PNSB chairman in March 2008.
“However, none of these benefits were included in the EA forms submitted by PNSB earlier. The petrol and vehicle maintenance of the Harrier was also paid by PNSB,” said the statement.
Khalid said that he was aware of the growing concern among PNSB employees on the financial implications due to the underdeclaration of past EA forms and be patient as IRB raises the additional individual assessment.
The first-term MB also promised that PNSB will henceforth comply with all regulations stated in the Income Tax Act when submitting EA forms.
This is the second revelation to have implicated Khir Toyo after Malaysian Anti-Corruption Commission said that there was strong evidence against Khalid over the misuse of state funds last Friday.
On Tuesday, Khalid alleged certain improprieties concerning the acquisition of properties in Mecca, Saudi Arabia by PNSB. Although, he declined to name the “individual” implicated in the deals, Khalid said that the purchases were approved by Khir Toyo.
Permodalan Negeri Selangor Bhd did not declare Khir Toyo’s benefit in kind (car, driver, overseas holidays) in income tax submission