KUALA LUMPUR – Six individuals linked to a syndicate responsible for unlawfully reducing the duty on exotic cars and evading RM33 million in taxes, are set to be charged in the Alor Setar Sessions Court on January 15 and 16.
The suspects, operating as both warehouse service operators and ‘runners’ in Langkawi, were arrested in July 2023 through a special operation conducted by the Malaysian Anti-Corruption Commission (MACC).
A source from the graft buster said all six will face over 21 charges under Section 468 and Section 471 of the Penal Code.
The source said the MACC initiated the operation in response to Langkawi’s customs duty under-collection issue as highlighted in the Auditor-General’s Report 2022.
The report revealed a customs duty collection leakage of over RM72 million from 2012 to 2021.
The vehicles involved include brands like Lamborghini, Ferrari, Porsche, Bentley, McLaren, and Rolls Royce.
Following the Auditor-General’s report, MACC mounted ‘Op Eagle,’ uncovering a syndicate collaborating with luxury car buyers seeking illegal exemptions and duty reductions.
The syndicate employed falsified statutory declarations of the vehicle owners’ names to deceive the Customs Department.
The operation also exposed corruption and leakages at the duty free centre and traced 100 luxury cars suspected of evading customs duties.
In the initial phase of the operation conducted in the north of the country, Johor, and Sabah around July of the previous year, MACC successfully seized nine luxury cars of various brands valued at over RM12 million.
As a result, MACC dismantled the syndicate responsible for illegally reducing luxury car duties, causing a government tax leakage of up to RM33 million, and arrested seven individuals.
Meanwhile, MACC’s Special Operations Division senior director, Datuk Azmi Kamaruzaman, confirmed that all suspects will face charges under Section 468 and Section 471 of the Penal Code.
Additionally, MACC is investigating vehicle owners under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001) for possessing and disposing of proceeds from this serious criminal activity, he said. – January 13, 2024