Malaysian timber giant Rimbunan Hijau’s Papua New Guinea is undervaluing its timber exports and overstating its costs to show a loss, and escape taxes, think-tank Oakland Institute said.

Poring over data in a report released on Monday, Oakland Institute said the firm’s 16 subsidiaries have been declaring losses for more than a decade but were in fact channelling the profits to tax havens.

The profits are then repatriated to Malaysia under the guise of foreign direct investment, the policy research house said in a 25-page report.