2 Chinese nationals in Malaysia face US$392,000 tax bills after employer fraud

Two Chinese nationals working in Malaysia are facing income tax bills amounting to 748,073.84 ringgit (US$184,595) and 842,118.84 ringgit, respectively, after their employer allegedly used their identities to submit false salary information to the Inland Revenue Board (LHDN).Li Juan, 42, discovered the issue when she tried to extend her work permit, while the other victim, Chen Bi Ling, 40, who was married to a Malaysian, found out about it when she was extending her spouse’s visa.Speaking at a press conference in Kuala Lumpur, the Malaysian Chinese Association’s (MCA) Public Services and Complaints Department head Michael Chong said Li was a sales and marketing manager, while Chen was a part-time cashier and both were facing the same problem involving the same employer.“The employees were working in Kuchai Lama under an employer named Mr Yu, 43, who is also a Chinese national,” he said on Monday.“He also owns several minimarkets and a steamboat restaurant. The employer misused the two victims’ identities and passports to file tax returns with the LHDN,” Chong said.Chong said the employer’s alleged modus operandi was to inflate employees’ salaries when filing tax returns with the LHDN.