GUNUNG LANG DEVELOPMENT SDN BHD Ketua Pengarah Hasil Dalam Negeri

GUNUNG LANG DEVELOPMENT SDN BHD Ketua Pengarah Hasil Dalam Negeri

The High Court allowed the appeal because the Special Commissioner of Income Tax erred in striking out para 5 of the Statement of Agreed Facts after it had been admitted as an exhibit, causing a breach of natural justice (audi alteram partem); that procedural error warranted overturning the decision and ordering refund of the additional tax and penalty paid by the appellant.

Citation
WA-14-47-10/2020 (Mahkamah Tinggi)
Parties
Appellant/perayu: Gunung Lang Development Sdn Bhd; Respondent/responden: Ketua Pengarah Hasil Dalam Negeri
Court
High Court
Jurisdiction
Malaysia
Judgment Date
4 April 2022
Case Number
WA-14-47-10/2020 (Mahkamah Tinggi)
Procedural Posture
Tax Appeal / Appeal to High Court From Special Commissioner of Income Tax (trial Judgment)
Outcome
Appeal allowed
Legal Topics
Income Recognition Timing, Limitation Period, Tax Assessment and Penalty, Natural Justice, Statement of Agreed Facts
Source Language
Malay/English
Tax Law Administrative Law Evidence Contract Law Income Recognition Timing Limitation Period Tax Assessment and Penalty Natural Justice +1 more

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Parties

Gunung Lang Development Sdn Bhd

Appellant/perayu

Ketua Pengarah Hasil Dalam Negeri

Respondent/responden

Procedural Posture

Tax Appeal / Appeal to High Court From Special Commissioner of Income Tax (trial Judgment)

Legal Issues

  1. 1 Whether income from sale and purchase agreements is taxable at the date of the SPA or upon fulfilment of conditions precedent
  2. 2 Whether additional assessments for YA 2011 and 2012 were time-barred under s91 of the Income Tax Act 1967
  3. 3 Whether penalty under s113(2) of the Income Tax Act 1967 was lawfully imposed

Ratio Decidendi

The High Court allowed the appeal because the Special Commissioner of Income Tax erred in striking out para 5 of the Statement of Agreed Facts after it had been admitted as an exhibit, causing a breach of natural justice (audi alteram partem); that procedural error warranted overturning the decision and ordering refund of the additional tax and penalty paid by the appellant.

Court Disposition

Appeal allowed

Orders

  • Additional tax of RM9,297.50 and penalty of RM2,326,341.83 already paid by the appellant are declared null and void and shall be refunded by the Director General of Inland Revenue
  • No order as to costs