KOTA KINABALU: The state customs department has launched a crackdown on defiant businessmen who have yet to settle their service tax despite being reminded to do so.
All in all, 344 business outlets have been identified and served with notices to pay up within seven days from February 20.
“If they still fail to comply, they will be blacklisted,” state customs director Datuk Dr Janathan Kandok.
On Tuesday night, a team of customs officers led by Dr Janathan conducted a surprise check on a major entertainment outlet which is among the 344 defaulters.
“This operation is to serve as a warning that we are serious and we want them to settle their dues within the time frame given,” he said.
The defaulters, he said, included operators of pubs, reflexology centres, hotels, restautants as well as architect and law firms.
Failure to pay service tax is an offence under Section 12 of the Service Tax Act 1975 and the offeners are liable to a fine of up to 50 per cent of the amount of the unpaid service tax.
“In fact we have called these people to the office to remind them of their responbility to pay up,” Dr Janathan said.
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