Malaysiakini Yoursay

Outrageous to pay RM8.16m in annual rent for IRB's Kuantan office

Yoursay  |  Published:  |  Modified:

YOURSAY| ‘Why do you need office space equivalent to the size of five football fields?’

MOF justifies IRB's RM680k monthly rent for Kuantan office

Vijay47: Paying rental of RM680,000 a month, or RM8.16 million a year, must be the latest in cost-cutting measures by the government. In five years, the Inland Revenue Board (IRB) would have chalked up RM43 million, enough to have constructed its own building.

From the breakdown given, it appears that the IRB picks up the tab for the owner's total expenses. Thus, it would be interesting to see the net amount declared by Menara CDO’s owner, CDO Resources, and the tax they pay every year.

Anonymous_1424794168: The point is not the rental payment of RM680,000 per month but to analyse it from rental per square foot.

Assuming gross floor area of 203,455 sq ft, this works out to be RM3.34 gross rental per square foot (psf). Net rental per square foot is higher. But this RM3.34 psf is average for the entire building.

Is this reasonable for a location like Kuantan, and more so when the government underwrites all the space? Could they have done a better job at negotiating for lower rent per square foot?

Annonymous: Why do you need office space that is equivalent to the size of five, yes, five huge football fields to service such a small east coast town?

The rental rate in Kuantan is averaging around RM1-2 per square feet. How large is the director's office and how many car park spaces are there for the VIP government servants?

All IRB records and processes are now automated via e-filing for efficiency and cost savings, but why were the manpower and operating costs not reduced accordingly?

And the taxpayers are further paying a huge 780 sq ft luxury space for each officer in Kuantan? How many taxpayers are there in Kuantan to justify such sinful "rental" and wanton waste of taxpayers’ money?

NNFC: The IRB must publicly declare who the real owners of the property are and that it is not connected with any parties in this rental deal. It should provide a survey of the average price of rental in the same vicinity.

This is a recommended practice for transparent and open dealings. Anything less will be seen as being corrupt.

Boeyks: How can the Finance Ministry (MOF) justify this? RM680,000 in monthly rental for an office with 260 staff - each staff costs the taxpayer more than RM2,500 a month.

And the ministry which justified such rental is managing the country’s finances!

Mosquitobrain: The IRB can always acquire land and build its own building instead of paying RM8.16 million rental per annum.

MOF, however you spin, to keep 260 staff at RM3.34 per square foot in Kuantan is definitely on the high side. That is taxpayer's money. Which valuation company are you engaging?

Iiiizzzziiii: And to think the IRB is going after those companies who they suspect did not file proper tax return!

Perhaps they should better do some major spring cleaning themselves. Maybe the public should do it for them, free of charge, of course.

Sinan Belawan: Outrageous. Declare who the real owners of the building are. Have they paid their tax on the huge rental collected?

This is indeed a colossal waste of public funds by a government department entrusted to collect income tax.

Headhunter: Just buy the building, for goodness sake. The IRB harass taxpayers for every sen they can collect and then splash the money extravagantly.

If Anwar and Najib do a deal…

Prudent: Pakatan Harapan de facto leader Anwar Ibrahim receiving Prime Minister Najib Abdul Razak and Deputy Prime Minister Ahmad Zahid Hamidi in hospital weakens the opposition, as it sent a contradictory message and confused Harapan's voters.

It amounts to a net win for Najib, a win that Malaysia can ill afford so close to the general election.

Have A Great Day: That Malaysian Official 1 (MO1) still holds to power is indicative to me of the level of politics in our country. No, there is definitely more to those visits than compassionate get-well-soon gestures.

Yes, Malaysiakini contributor P Gunasegaram, who are we as mere ordinary rakyat to fathom the chess moves being played out.

But, as a voter, I can cast my vote accordingly - and any pact with the devil will mean my vote will not be for Harapan.

Aries46: Please give some credit to Anwar. Whatever he may be, turncoat is not one of them. That would have been his fastest road to perdition.

He is too proud a man to be humbled by tainted leaders. Even now it is former premier and current Harapan chairperson Dr Mahathir Mohamad that initiated the handshake that binds them in Harapan.

Tekad: All the unnecessary speculation does the suffering rakyat no favours, it only serves to side-track the real issues of high cost of living, stagnant income, and corruption which the people want resolved.

These are the real issues voters in the 14th General Election want to consider.

Anonymous #26191220: Personal reconciliations should be just that, personal.

What Malaysia requires is more than reconciliation - restoration of democratic values and institutions, rule of law and building a just and fair society.

That's right, the rakyat will be the biggest losers if reconciliation means everything that is wrong and iniquitous is swept under the carpet.

The above is a selection of comments posted by Malaysiakini subscribers. Only paying subscribers can post comments. Over the past one year, Malaysiakinians have posted over 100,000 comments. Join the Malaysiakini community and help set the news agenda. Subscribe now.

These comments are compiled to reflect the views of Malaysiakini subscribers on matters of public interest. Malaysiakini does not intend to represent these views as fact.

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