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TITLE: New Statutory Orders gazetted, Operational Guideline on SVDP, Operational Guideline on Procedure for Submission of Amended Tax Return, Tax Cases and Technical Guideline on Dispute Resolution Proceeding

DATE: 08/05/2019

8 May 2019
Circular No. 50/2019

TO ALL ACCOUNTANTS

1. STATUTORY ORDERS ON DEDUCTION FOR EXPENDITURE ON ISSUANCE OF SUKUK, RETAIL DEBENTURE AND RETAIL SUKUK
  On 25 April 2019, the following statutory orders were gazetted by the Federal Government:
 
(i) P.U.(A) 118/2019 – Income Tax (Deduction for Expenditure on Issuance of Sukuk) Rules 2019
(ii) P.U.(A) 117/2019 – Income Tax (Deduction for Expenditure on Issuance of Retail Debenture and Retail Sukuk) Rules 2019
 
Statutory order Deduction Commencement date
P.U.(A)118/2019 In ascertaining the adjusted business income of a resident Company, there shall be allowed as a deduction, an amount equivalent to the expenditure incurred by the Company on the issuance of sukuk that is:
a) approved or authorised by or lodged with the Securities Commission Malaysia; or
b) approved by the Labuan Financial Services Authority.
Have effect from YA 2019 and YA 2020
P.U.(A) 117/2019 A company resident in Malaysia shall be allowed a deduction or a double deduction for certain additional expenses in relation to the issuance of certain debenture or sukuk approved or authorised by the Securities Commission Malaysia. Have effect from YA 2019 and YA 2020
2. OPERATIONAL GUIDELINE ON SPECIAL VOLUNTARY DISCLOSURE PROGRAMME – NO. 1/2019
  On 24 April 2019, the Inland Revenue Board of Malaysia (IRBM) released the operational guideline on Special Voluntary Disclosure Programme (SVDP) No.1/2019 which superseded the SVDP guidelines published on 30 November 2018 and 29 March 2019.

For more details, please click on the link below:

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=5&bt_posi=3&bt_unit=7000&bt_sequ=1
   
3. OPERATIONAL GUIDELINE NO. 3/2019 – ‘PROSEDUR PENGEMUKAAN BORANG NYATA TERPINDA’
  On 22 April 2019, the IRBM released the operational guideline only available in Malay titled ‘Prosedur Pengemukaan Borang Nyata Terpinda No. 3/2019 which superseded the Guideline No. 1/2010 published on 30 November 2010.

For more details, please click on the link below:

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=5&bt_posi=3&bt_unit=7000&bt_sequ=1
 
4. TAX CASES PUBLISHED BY THE IRBM
  On 19 April 2019, the IRBM published the following tax cases for reference:
 
Name of the case Subject matter Related provision of law Category
Alwan Enterprise Sdn Bhd-Singapura v Ketua Pengarah Hasil Dalam Negeri Withholding Tax Section 109B of the Income Tax Act 1967 (ITA 1967) Judicial review (High Court)
Alwan Enterprise Sdn Bhd-Jepun v Ketua Pengarah Hasil Dalam Negeri Withholding Tax Section 109B of the ITA 1967 Judicial review (High Court)
Ketua Pengarah Hasil Dalam Negeri v Kompleks Tanjong Malim Sdn Bhd Deductions Section 33(1) of the ITA 1967 Appeal (High Court)
Lavender Confectionaery & Bakery Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri Industrial Building Allowance and Reinvestment Allowance Schedule 3 and Schedule 7A of the ITA 1967 Appeal (High Court)
Glocomp Systems (M) Sdn Bhd v Ketua Pengarah Hasil Dalam Neger Withholding Tax Section 109 of the ITA 1967 Judicial review (High Court)
Ketua Pengarah Hasil Dalam Negeri v Cimb Bank Berhad Capital Allowance Schedule 3 of the ITA 1967 Appeal (High Court)
  Please refer to the enclosed fact of cases and ground of judgment which can be downloaded from the IRBM’s website at the link below:

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=5&bt_posi=3&bt_unit=7000&bt_sequ=10
   
5. TECHNICAL GUIDELINE ON DISPUTE RESOLUTION PROCEEDING
  In March 2019, the IRBM has issued the Technical Guideline on Dispute Resolution Proceeding (DRP) to provide information regarding the implementation of DRP, a mechanism to resolve dispute arising from an appeal or application for relief filed by taxpayer to the IRBM and to spread awareness of taxpayer’s rights and responsibilities in relation to one of the mediums of settlement for appeal against an assessment and application for relief.

Please refer to the enclosed guideline for more details which can be downloaded from the IRBM’s website at the link below:

http://lampiran1.hasil.gov.my/pdf/pdfam/GUIDELINE_DRP_03042019.pdf

Please be guided accordingly.

DR. NURMAZILAH DATO' MAHZAN
Chief Executive Officer

Description: P.U.(A) 118_IT (Deduction for Exp on Issuance of Sukuk) Rules 2019
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Format: PDF
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Description: P.U.(A) 117_IT (Deduction Exp on Issuance of Retail Debenture and Sukuk) Rules 2019
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Description: Operational Guideline_1_2019_SVDP
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Size: 389 KB

Description: Operational Guideline_3_2019_Prosedur Pengemukaan Borang Nyata Terpinda
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Description: Tax cases
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Size: 6.37 MB

Description: GUIDELINE_DRP_03042019
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Format: PDF
Size: 328 KB