Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Penalty under s113(2)

Legal area

Court

15 Feb 2024

SYARIKAT SESCO BERHAD KETUA PENGARAH LEMBAGA HASIL DALAM NEGERI

Citation

BA-14-3-09/2022 (Mahkamah Tinggi)
Court

High Court
Case number

BA-14-3-09/2022 (Mahkamah Tinggi)

Feasibility study expenditures were capital in nature because they were incurred to explore, design and develop physical hydroelectric sites and dams, hence they fall within paragraph 39(1)(c) as sums employed or intended to be employed as capital and are not deductible under s33(1); the Director General lawfully exercised discretion under s113(2) to impose a 35% penalty and the appellant cannot rely on a good faith defence to negate that penalty.
30 Oct 2023

KETUA PENGARAH HASIL DALAM NEGERI MALAYSIA SYARIKAT TAN CHANG YONG HOLDINGS SDN BHD

Citation

W-01(A)-347-06/2021 (Mahkamah Rayuan)
Court

A
Case number

W-01(A)-347-06/2021 (Mahkamah Rayuan)

Contemporaneous documentary evidence and admissions established the transaction was a purchase of a timber concession (exclusive rights to extract and dispose of timber) rather than purchase of standing logs; such payments fall within paragraph 39(1)(g) and are therefore not deductible under s33(1); DGIR was not estopped from raising the statutory restriction and validly imposed a penalty under s113(2) (45%); High Court and SCIT majority erred in law and are set aside.