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

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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

The differences between Income Tax Act, Public Rulings and PU order

Unknown to most, the Income Tax Act 1967 is not the only piece of document that has the force of law. When determining the deductibility of expenses and whether income from a certain source is subject to tax, tax consultants (me) would refer to several places and with reference to various other documents to make… Continue reading The differences between Income Tax Act, Public Rulings and PU order