KUALA LUMPUR: Seven people allegedly involved in a syndicate responsible for illicitly reducing duties on luxury cars, resulting in a staggering loss of over RM33 million in taxes for the government, will be charged in the Alor Star Sessions Court, Kedah, on Jan 15 and 16.
The suspects, identified as operators and 'runners' of a luxury car warehouse in Langkawi, face more than 21 charges under Section 468 and Section 471 of the Penal Code and the Malaysian Anti-Corruption Act 2001.
A source said the Malaysian Anti-Corruption Commission (MACC) arrested the suspects in a special operation in July 2023, prompted by reports of Customs duty under-collection spanning from 2012 to 2021.
"The Auditor General's Report 2022 (LKAN 2022) disclosed leakages exceeding RM72 million related to the sale of over 100 luxury cars, including Lamborghini, Ferrari, Porsche, Bentley, McLaren, and Rolls Royce, on the island.
"Following these findings, MACC launched 'Op Eagle' and exposed a syndicate colluding with luxury car owners seeking unwarranted exemptions and duty reductions," the source said.
The source added that the suspects also utilised false names in car registrations to deceive the Royal Malaysian Customs Department during purchases.
"During the operation, MACC also uncovered corruption at the Duty Free Centre (PBC) and traced 100 luxury cars suspected of evading customs duty.
"The first phase of the operation in northern states, Johor, and Sabah last July led to the recovery of nine luxury cars valued at over RM12 million."
When contacted, MACC Special Operations Division senior director, Datuk Azmi Kamaruzaman, confirmed that all suspects would face charges under Section 468 for forgery and Section 471 of the Penal Code for fraudulent or dishonest use of genuine documents.
He also said MACC is investigating vehicle owners under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorist Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA 2001) for possessing and disposing of the proceeds of this serious criminal activity.