ETIQA FAMILY TAKAFUL BERHAD (DAHULUNYA DIKENALI SEBAGAI ETIQA TAKAFUL BERHAD) Ketua Pengarah Hasil Dalam Negeri

ETIQA FAMILY TAKAFUL BERHAD (DAHULUNYA DIKENALI SEBAGAI ETIQA TAKAFUL BERHAD) Ketua Pengarah Hasil Dalam Negeri

s.33(1) ITA applies to commission expenses incurred to generate wakalah fee income for the years in question; s.60AA does not contain an express exclusion of s.33 and therefore does not override the general deduction provision; established authorities support that Chapter 8 computations do not oust general deduction rights absent explicit statutory language. Consequently the taxpayer is entitled to deduct the commission expenses for YA 2008–2013.

Citation
W-01(A)-726-09/2022 (Mahkamah Rayuan)
Parties
Appellant (appeal 726); Respondent (appeal 746): Etiqa Family Takaful Berhad; Respondent (appeal 726); Appellant (appeal 746): Ketua Pengarah Hasil Dalam Negeri (Director General of Inland Revenue)
Court
A
Jurisdiction
Malaysia
Judgment Date
28 November 2024
Case Number
W-01(A)-726-09/2022 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (income Tax) / Court of Appeal (dissenting Judgment)
Outcome
Appeal 726 allowed; Appeal 746 dismissed in limine (dissenting judgment).
Legal Topics
Deductibility of Commission Expenses, Interpretation and Interplay of Income Tax Act 1967 S.33 and S.60 AA, Wakalah Fee Taxation, Generalia Specialibus Non Derogant
Source Language
Malay/English
Tax Law Statutory Interpretation Islamic/takaful Finance Law Deductibility of Commission Expenses Interpretation and Interplay of Income Tax Act 1967 S.33 and S.60 AA Wakalah Fee Taxation Generalia Specialibus Non Derogant

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 13 Party arguments 2
Sign in to unlock

Parties

Etiqa Family Takaful Berhad

Appellant (appeal 726); Respondent (appeal 746)

Ketua Pengarah Hasil Dalam Negeri (Director General of Inland Revenue)

Respondent (appeal 726); Appellant (appeal 746)

Procedural Posture

Civil Appeal (income Tax) / Court of Appeal (dissenting Judgment)

Legal Issues

  1. 1 Whether commission expenses paid to generate wakalah fee from the general takaful fund for YA 2008–2013 are deductible under s.33(1) Income Tax Act 1967
  2. 2 Whether s.60AA (and specifically s.60AA(9)(b) as amended) excludes or overrides the general deduction provision in s.33(1) for takaful operators prior to the 2014 amendment

Ratio Decidendi

s.33(1) ITA applies to commission expenses incurred to generate wakalah fee income for the years in question; s.60AA does not contain an express exclusion of s.33 and therefore does not override the general deduction provision; established authorities support that Chapter 8 computations do not oust general deduction rights absent explicit statutory language. Consequently the taxpayer is entitled to deduct the commission expenses for YA 2008–2013.

Court Disposition

Appeal 726 allowed; Appeal 746 dismissed in limine (dissenting judgment).

Orders

  • Appeal 726 allowed
  • Appeal 746 dismissed in limine