Ketua Pengarah Hasil Dalam Negeri v DATUK OH CHONG PENG

w-01a-685-12-2023 Court of Appeal (Mahkamah Rayuan) 8 October 2025 • W-01(A)-685-12/2023 • 22 min read

10 cases cited (0 SG, 10 foreign)

Catchwords

Income Tax – Employment Income – Independent Non-Executive Director – Whether Employee – Directors’ Fees – Business Income – Interpretation of Sections 4(a), 4(b), 91(3) and 113(2) Income Tax Act 1967 – Master-Servant Relationship – Degree of Control Test – Bursa Malaysia Listing Requirements – Evidentiary Value of EA Forms and Company Secretaries’ Letters – Negligence – Time-Barred Assessments – Penalty – Taxpayer acted on professional advice and made full disclosure – Revenue failed to prove negligence – Directors’ fees, allowances and consultancy fees taxable as business income, not employment income – Appeal dismissed; assessments and penalties set aside.

Judges (3)

Collin Lawrence Sequerah Coram Mohd Firuz bin Jaffril Delivered Nadzarin bin Wok Nordin Coram

Counsel (7)

Lembaga Hasil Dalam Negeri Malaysia Firm Rosli Dahlan Saravana Partnership Firm Ahmad Isyak bin Mohd Hassan Counsel Appellant Azleena binti Md Khairuddin Counsel Appellant Felicia Wong Sie Ying Counsel Respondent Marina binti Ibrahim Counsel Appellant S. Saravana Kumar Counsel Respondent

Parties (2)

Ketua Pengarah Hasil Dalam Negeri Appellant Datuk Oh Chong Peng Respondent

Statutes Cited

Companies Act 2016 (Cap 777)

Income Tax Act 1967 (Cap 53)

Cases Cited (10)

AU (1)

[2015] SASC 35

MY (9)

[1994] 1 MLJ 14 [1995] 3 MLJ 369 [2004] 3 MLJ 1 [2017] MLJU 244 [2023] 2 MLJ 90 [2025] 1 CLJ 883 [2025] 3 CLJ 1 [2025] 4 CLJ 32 [2025] 4 CLJ 501

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (w-01a-685-12-2023)