Finance Bill 2019 and Budget 2020 highlights for the millenials

The highly anticipated Budget 2020 was announced by the Pakatan Harapan Government on 11 October 2019. This was a momentous event not only because it was a budget created where the government of the day had a full year of being in power but also to address the elephant in the room - debt crisis.… Continue reading Finance Bill 2019 and Budget 2020 highlights for the millenials

Focus update: Reinvestment allowance

  KPHDN v Nulogitec Industries Sdn Bhd (High Court)   This case concerns the taxpayer’s claim for reinvestment allowance (RA) used to purchase a factory and machineries. The taxpayer had in the year 2004 relocated to a new and larger factory to house its manufacturing business. The RA was refused as the factory was a… Continue reading Focus update: Reinvestment allowance

Development of the law in Malaysia on deposits and Liquidated Agreed Damages clauses

  (Note: this blog post discusses the movement of law on deposits pursuant to Cubic Electronics Sdn Bhd (in liquidation) v Mars Telecommunications Sdn Bhd and also Liquidated Agreed Damages under Cubic Electronics, Macvilla Sdn Bhd v Mervyn Peter Guan Yin Hui and Golden Approach v Lau Seng Leong) Previously, the law provides that for… Continue reading Development of the law in Malaysia on deposits and Liquidated Agreed Damages clauses

Case update: IRB’s right to apportion expenses

The general rule governing the deductibility of expenses is encapsulated under section 33(1) of the Income Tax Act 1967 (“the Act”) which reads (emphasis as highlighted): Therefore, the below conditions must be fulfilled (unless otherwise provided in the Act) to allow a deduction for an expense: The expenses must be wholly and exclusively incurred in… Continue reading Case update: IRB’s right to apportion expenses

Understanding RPGT 2: Real Property Companies

Following the previous post on Real Property Gains Tax (RPGT), this post aims to shed a spotlight on another field of transaction which will also attract RPGT- sale of shares in a Real Property Company (RPC). Generally, Malaysia does not charge any capital gains tax (neither does Malaysia have a CGT regime) on sale of… Continue reading Understanding RPGT 2: Real Property Companies