The Customs Department was to begin on Monday a week-long operation to recover RM1 billion in unpaid business taxes.

New Straits Times , citing the state Bernama news agency, said about 15,000 companies have yet to pay sales and service taxes.

"These companies owe the government a lot of money. Some have not paid a single cent in taxes since starting operations a few years ago," Customs director general Abdul Rahman Abdul Hamid was quoted as saying.

He said the government knows who the offenders are.

"There is no point trying to hide or closing down operations for a week during the operation," Hamid said.

But he added the department would initially adopt a soft approach by issuing notices asking them to come forward and pay within 14 days.

The operation will be carried out by the department's 21 mobile units, the report said.