Celebrities Hiding Income Risk Legal Action Says Insolvency Dept Chief


 
KUALA LUMPUR: Insolvency Department Director-General of Insolvency Department Datuk Ishak Bakri said they are monitoring popular celebrities declared bankrupt who are suspected of hiding high incomes from their artistic work by channelling payments into the bank accounts of others, including employees or family members. — NSTP/ROHANIS SHUKRIKUALA LUMPUR: The Insolvency Department is monitoring popular celebrities declared bankrupt who are suspected of hiding high incomes from their artistic work by channelling payments into the bank accounts of others, including employees or family members.
Director-General of Insolvency Department Datuk Ishak Bakri said investigations include companies hiring the bankrupt artists to trace where payments were directed.
These individuals are required to report their income every six months under Subsection 38(1)(b) of the Insolvency Act 1967 [Act 360].
"We know many popular bankrupt artists still earn good income but hide it from us. Payments are made into the accounts of family members, managers or employees," he said.
He added that failure to declare income not only hampers their chances of being discharged from bankruptcy but also violates the law and may result in court action.
Section 38 of the Insolvency Act requires bankrupts to submit their income and expenditure statements every six months and surrender any surplus funds to the department.
Ishak said some celebrities ignore this duty and fail to make the required monthly contributions despite earning from their work. The department may call companies involved to provide information for auditing purposes.
President of the Malaysian Artistes Association (Seniman), Zed Zaidi, urged celebrities to take responsibility and set a good example by resolving their bankruptcy issues.
Ishak said the department is open to discussions with bankrupt individuals, including celebrities, who want to resolve their cases. However, many avoid contact out of shame or fear, making it harder to help them.
"There's no point flaunting a lavish lifestyle on social media as if nothing is wrong, yet failing to make small monthly payments based on their means," he said. - NST


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