2 Feb 2021
KETUA PENGARAH HASIL DALAM NEGERI CLASSIC JAPAN (M) SDN BHD
- Citation
- AA-14-1-06/2019 (Mahkamah Tinggi)
- Court
- High Court
- Case number
- AA-14-1-06/2019 (Mahkamah Tinggi)
Where the statutory grant of tax relief is ambiguous, the subsidiary legislation conferring the relief must be construed purposively and liberally in favour of the taxpayer; applying that approach the court found Classic Japan qualified as a company "engaged in agriculture" under the 1999 Rules and its factory qualified for IBA (including under paragraph 37C for storage for export); because the dispute arose from a reasonable interpretation and there was evidence of good faith and divided findings at SCIT, the penalty under s113(2) was unjustified and set aside.