Revenue Law

6 cases · May 2024 to June 2026

Case Volume by Year

2
24
1
25
3
26
2024–2026

Key Issues & Sub-Topics

Stamp Duty — Asset Purchase Agreement — Telecommunication Towers — Conveyance on Sale — Ad Valorem Duty — Section 21(1), Stamp Act 1949 — Item 32(a), First Schedule — Whether agreement for sale of 16 telecommunication towers and associated assets constituted a “conveyance on sale” — Whether telecommunication towers were “goods, wares or merchandise” within statutory exception — Effect of future completion and transfer of legal title — Applicability of Havi Logistics (M) Sdn Bhd v Pemungut Duti Setem — Whether ad valorem duty chargeable notwithstanding further acts required for completion — Appeal allowed; High Court decision set aside; assessment under Item 32(a) upheld. 1 Goods and Services Tax (GST) — Taxable supply — Supply of services for consideration — Characterisation of commercial relationship — Alleged joint venture — Whether arrangement constituted joint venture or subcontract — Project awarded by Government agency to third party contractor — Payments made by contractor to appellant company — Income recorded in appellant’s general ledger — Absence of formal joint venture agreement, profit-sharing arrangement or loss-sharing mechanism — Whether taxable supply established — Goods and Services Tax Act 2014, ss 4, 9. 1 Goods and Services Tax (GST) — Joint venture — Meaning and legal incidents — Whether use of term “kerjasama” sufficient to establish joint venture — Necessity for common undertaking, mutual agency, profit and loss sharing and community of interest — Whether substance of arrangement rather than label determinative. 1 Goods and Services Tax (GST) — Time of supply — Services performed after commencement of GST regime — Contract awarded before GST implementation date — Whether chargeability determined by date of contract or date services performed — Goods and Services Tax Act 2014, s 11(3). 1 Goods and Services Tax (GST) — Exemption — Ministerial power of exemption — Requirement of written order published in Gazette — Alleged exemption communicated by government department — Whether departmental letter capable of conferring GST exemption — Goods and Services Tax Act 2014, s 56. 1 Goods and Services Tax (GST) — Assessment — Recovery of tax as civil debt — Certificate of Debt — Conclusive evidence of making of assessment — Sufficiency of certificate to support judgment — Whether taxpayer may collaterally challenge merits of assessment in debt recovery proceedings — Goods and Services Tax Act 2014, s 46(4). 1 Goods and Services Tax (GST) — Assessment — Challenge to assessment — Proper avenue for challenge — Administrative review and statutory appeal process — Whether challenge permissible in subsequent civil debt recovery proceedings. 1 Company — GST liability — Directors’ liability — Joint and several liability — Director resigning after taxable periods but before debt recovery proceedings — Whether resignation extinguished accrued liability — Goods and Services Tax Act 2014, s 53(1). 1 Income Tax — Appeal from Special Commissioners of Income Tax — Paragraph 34 Schedule 5 Income Tax Act 1967 — Scope of Appellate Intervention — Question of Law — Findings of Fact and Factual Inference — Call Option — Option Fee — Disposal of Rights — Value-Added Land — Minister of Finance’s Exemption Approval under Section 127(3A) Income Tax Act 1967 — Whether Call Option Fee Exempt — Subsequent Letter dated 08.07.2019 — Section 148 Income Tax Act 1967 — Retrospective Effect — Presumption Against Retrospectivity — Strict Construction of Tax Exemption — Additional Assessment — Penalty under Section 113(2) Income Tax Act 1967 — Appeal dismissed. 1 Assessment of stamp duty -Appeal against the decision of the High Court dated 6 November 2023 in dismissing the Appellant's appeal against the assessment of stamp duty(ad valorem duty) raised by the Respondent — Whether the Novation Agreement is chargeable under subsection 16(1) read together with item 32(a) of the First Schedule of the Stamp Act 1949 — Whether the Novation Agreement extinguished the original obligations(a novation) or transferred a debt(an assignment). 1 Tax exemption — Income Tax (Exemption) (No. 19) Order 2007 [P.U.(A) 417/2007] — Developer in approved node — Whether forfeited deposits, unit cancellation fees and late payment charges fall within scope of exemption — Interpretation of Minister of Finance order — Entitlement to exemption under s.127(3)(b), Income Tax Act 1967 1 Assessment — Notices of Additional Assessment — Validity — Whether issued ultra vires — Burden of proof — Availability of remedy before Special Commissioners of Income Tax — Whether High Court should intervene by certiorari 1 Income tax — Assessment — Appeal against deciding order of Special Commissioners of Income Tax (“SCIT”) in allowing respondent’s appeal and setting aside notices of advance assessment and additional assessment issued by appellant — Exemption of income tax from the respondent's gross income based on the Income Tax (Exemption) (No. 8) Order 2011 (“2011 Order”) 1 Income tax — Assessment — Whether the respondent is entitled to the tax exemption under the 2011 Order— Para 2(1) — Circumstances where individual non-Malaysian citizen is entitled to claim the 50% exemption under para 2(1) — Meaning of “managerial capacity” — Whether there is sufficient evidence to establish that the respondent is the manager in the company — Whether DGIR correct in concluding that the respondent did not qualify for the exemption in the 2011 Order — Whether assessment raised by DGIR in accordance with the 2011 Order — Whether SCIT correct in allowing the appeal made under s 99(1) of the Income Tax Act 1967 (“ITA”) 1

Goods and Services Tax (GST) — Taxable supply — Supply of services for consideration — Characterisation of commercial relationship — Alleged joint venture — Whether arrangement constituted joint venture or subcontract — Project awarded by Government agency to third party contractor — Payments made by contractor to appellant company — Income recorded in appellant’s general ledger — Absence of formal joint venture agreement, profit-sharing arrangement or loss-sharing mechanism — Whether taxable supply established — Goods and Services Tax Act 2014, ss 4, 9. 1 case

Goods and Services Tax (GST) — Time of supply — Services performed after commencement of GST regime — Contract awarded before GST implementation date — Whether chargeability determined by date of contract or date services performed — Goods and Services Tax Act 2014, s 11(3). 1 case

Goods and Services Tax (GST) — Exemption — Ministerial power of exemption — Requirement of written order published in Gazette — Alleged exemption communicated by government department — Whether departmental letter capable of conferring GST exemption — Goods and Services Tax Act 2014, s 56. 1 case

Goods and Services Tax (GST) — Assessment — Recovery of tax as civil debt — Certificate of Debt — Conclusive evidence of making of assessment — Sufficiency of certificate to support judgment — Whether taxpayer may collaterally challenge merits of assessment in debt recovery proceedings — Goods and Services Tax Act 2014, s 46(4). 1 case

Goods and Services Tax (GST) — Assessment — Challenge to assessment — Proper avenue for challenge — Administrative review and statutory appeal process — Whether challenge permissible in subsequent civil debt recovery proceedings. 1 case

Company — GST liability — Directors’ liability — Joint and several liability — Director resigning after taxable periods but before debt recovery proceedings — Whether resignation extinguished accrued liability — Goods and Services Tax Act 2014, s 53(1). 1 case

Income Tax — Appeal from Special Commissioners of Income Tax — Paragraph 34 Schedule 5 Income Tax Act 1967 — Scope of Appellate Intervention — Question of Law — Findings of Fact and Factual Inference — Call Option — Option Fee — Disposal of Rights — Value-Added Land — Minister of Finance’s Exemption Approval under Section 127(3A) Income Tax Act 1967 — Whether Call Option Fee Exempt — Subsequent Letter dated 08.07.2019 — Section 148 Income Tax Act 1967 — Retrospective Effect — Presumption Against Retrospectivity — Strict Construction of Tax Exemption — Additional Assessment — Penalty under Section 113(2) Income Tax Act 1967 — Appeal dismissed. 1 case

Assessment of stamp duty -Appeal against the decision of the High Court dated 6 November 2023 in dismissing the Appellant's appeal against the assessment of stamp duty(ad valorem duty) raised by the Respondent — Whether the Novation Agreement is chargeable under subsection 16(1) read together with item 32(a) of the First Schedule of the Stamp Act 1949 — Whether the Novation Agreement extinguished the original obligations(a novation) or transferred a debt(an assignment). 1 case

Tax exemption — Income Tax (Exemption) (No. 19) Order 2007 [P.U.(A) 417/2007] — Developer in approved node — Whether forfeited deposits, unit cancellation fees and late payment charges fall within scope of exemption — Interpretation of Minister of Finance order — Entitlement to exemption under s.127(3)(b), Income Tax Act 1967 1 case

Assessment — Notices of Additional Assessment — Validity — Whether issued ultra vires — Burden of proof — Availability of remedy before Special Commissioners of Income Tax — Whether High Court should intervene by certiorari 1 case

Income tax — Assessment — Appeal against deciding order of Special Commissioners of Income Tax (“SCIT”) in allowing respondent’s appeal and setting aside notices of advance assessment and additional assessment issued by appellant — Exemption of income tax from the respondent's gross income based on the Income Tax (Exemption) (No. 8) Order 2011 (“2011 Order”) 1 case

Income tax — Assessment — Whether the respondent is entitled to the tax exemption under the 2011 Order— Para 2(1) — Circumstances where individual non-Malaysian citizen is entitled to claim the 50% exemption under para 2(1) — Meaning of “managerial capacity” — Whether there is sufficient evidence to establish that the respondent is the manager in the company — Whether DGIR correct in concluding that the respondent did not qualify for the exemption in the 2011 Order — Whether assessment raised by DGIR in accordance with the 2011 Order — Whether SCIT correct in allowing the appeal made under s 99(1) of the Income Tax Act 1967 (“ITA”) 1 case

Key Statutes

cited in 3 cases
cited in 1 case
Banking and Financial Institutions Act 1989
cited in 1 case
Civil Law Act 1956
cited in 1 case
Stamp Act
cited in 1 case
UK Stamp Act 1891
cited in 1 case
cited in 1 case
Rules of Court 2012
cited in 1 case
cited in 1 case

Court Distribution

Key People & Firms

Cases