Tax Avoidance In Malaysia : governance lags behind OECD peers

 A few key phrases are missing from the article. In brief,

- companies are washing revenue, for example,

- company C borrows monies M from lender L

- C then lends M to beneficial party BP

- C services the interest I due to L from C's profit before tax PBT

- effectively, BP obtains M by borrowing against C's future gross income GI

- after paying for I, GI is reduced to a low PBT

- even after BP's principal and interest to C are repaid, and C repays L, the government lost tax revenue as from the unnecessary expense of I between GI and PBT

- multiple companies can engage this mechanism to mutually wash each other's GI to reduce their PBT and thus their tax burdens

- BP may be individuals, political parties, or other corporations