How do we implement GST with less than GST tax agents of 3,000?

How do we implement GST with less than GST tax agents of 3,000? There are 400,000 clients registered for GST -big and small and largely SME with turnover between RM500,000 to RM2,000,000. Are such 400,000 taxpayers/businesses suddenly so clever to comply with the GST which is complex in Malaysia? I believe it if BN/UMNO greedy ILLEGITIMATE government under Najib implement on 1 April, 2015, most of these sme business owners would end up paying lots of unsustainable penalties and likely end up in jail. Then who would be in business? If we have 400,000 clients, each client would need minimum 2 staff well versed in GST to handle this function, then we need 800,000 trained staff to implement GST. Such companies - many accounts done by owners themselves/partimers with some part time assistance from junior people - would be hard pressed to deal with daily chores and GST compliance is a burden. How to cope with business matters now burdened with more penalties? If the Government is wise, and they think software is the answer to everything, then it is damned wrong. Each business has its own intricacy and software costs is draining much cash resources even before GST is started and the solution of GST is yet untouched and unsolved. If the Government is wise, there should have trained a few hundred thousands of graduates in GST and subsidise them (for at least two years) to work for firms in need of such staff to comply. Afterall all the GST registered companies collect on behalf of the Government, that revenue under GST. So now it is too late and many businesses may just decide to give up to avoid heavy penalties and jail sentences- not once but all the way daily when offence can be committed in compliance. When too many businesses give up, the economy would be adversely affected by various impacts namely prices across the board would rise (demand and supply), jobless people would increase, more families can be destitute, debts would rise, crimes would rise, ill health in society would exacerbate, and other social ills like break up of families and children go without education and other problems could be endless. The worst can be in Sabah. Hence I advocate zero rate for Sabah for 5 years until Sabah catch up with Malaya. We all need to learn from mistakes aplenty but GST would generate a new set of worse mistakes. Joshua Y. C. Kong PM of IGGG M. http://fresh-air-in-iggg.blogspot.com

tough deals

Action on dodging firms begins; RM1.2b target in Sabah revenue from GST: Customs Published on: Tuesday, March 03, 2015 Kota Kinabalu: A special all-out operation called Ops GST has been launched by the Customs Department to trace companies which failed to register for the Goods and Services Tax (GST) before the Feb. 28 deadline. State Customs Director Datuk Dr Janathan Kandok (pic) said these companies would be compounded RM15,000 and registered according to the existing procedure. Those who fail to settle the compound within two weeks can be fined up to RM30,000 or jailed up to two years or both. Janathan said the operation is part of a nationwide effort to trace companies which "forgot" to register despite being given warnings and leniency to do so months ago. "In Sabah, a total of 18,625 companies out of the estimated 20,000 eligible companies had registered for GST as of Feb. 28 and a total of 1,375 companies have yet to do so," he told the State-level launch of Ops GST at the Wisma Kastam here. The operation would be conducted in Kota Kinabalu and major towns such as Tawau, Sandakan, Lahad Datu and Keningau, among others. "This is a joint effort which involves 16 teams of officers and personnel from three divisions in the Customs Department, namely the GST Division, Compliance Division and Enforcement Division," he said. On another note, he said the Customs Department was targeting to collect a total of RM1.2 billion in revenue from GST, levy, import tax and export tax this year. The department also for the first time invited a lion dance troupe to add joy to the launching ceremony in conjunction with the Chinese New Year celebration. In KUALA LUMPUR, the Customs Department has issued compounds of RM15,000 to 100 companies for failing to register. Companies with an income threshold of RM500,000 had to register for the GST which comes into effect on April 1. Customs Department GST Director Datuk Subromaniam Tholasy said it is important for companies to register as the department needed to provide a level playing field for businesses. "By not registering for the GST, the firms have a competitive advantage. This will create a lot of confusion and is unfair to those compliant businesses," he said. "The system is in place. But my main concern is the preparation of the businesses, as failure to understand the GST guidelines will result in the companies facing problems, especially in the early stage of implementation," he said. Due to this, Subromaniam advised business owners to read and understand the relevant guidelines available on the Customs Department's GST online portal or contact any of its offices, should they need further clarification. As of Feb 28, there were 345,376 companies registered for the GST. The initial registration deadline was set for December last year but extended to Feb 28.