Perks given to Khir Toyo and PNSB staff were never declared to IRB

By Neville Spykerman, The Malaysian Insider

The scandal-riddled Permodalan Negeri Selangor Berhad (PNSB) has been instructed to declare all benefits, including non-monetary perks given to its employees, to the Inland Revenue Board (IRB).

Menteri Besar Incorporated (MBI), the parent company of all state subsidiaries, issued the instructions to the state investment arm after external auditors discovered that PNSB had never declared non-monetary benefits to the IRB.

Among the benefits are cars and drivers as well as holidays to local and international destinations.

Menteri Besar Tan Sri Khalid Ibrahim, who is the chairman of MBI and PNSB, said the move was to ensure that state subsidiaries do not run foul of income tax laws.

Auditors recently discovered that PNSB had never declared these benefits, including perks, given to its previous chairman Datuk Seri Dr Mohd Khir Toyo.

In 2005, Dr Mohd Khir was provided a Toyota Harrier, while a driver was provided a year later and he had used these benefits until he resigned as PNSB chairman in March 2008.

However none of these benefits, including the maintenance and fuel for the vehicle which was provided, were declared by PNSB to the IRB.

Khalid said he was aware of the growing concern among PNSB employees on the financial implications due to the under declaration.

However he urged staff to be patient and wait for the IRB to reassess each individual’s assessment.

He added that PNSB will, from now on, comply with all income tax regulations.