The Virtual Gold Mine: Taxing Electronic Commerce
The Future Today The digital marketplace has steadily grown in popularity over the last couple of years. As of January 2020, Malaysia’s 6% digital service tax was implemented to levy taxes on popular online services like Netflix and Spotify. However, the “new normal” arising from the outbreak of COVID-19 has driven more transactions online and …
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When the Taxman Comes Knocking
‘Knock Knock’ In light of the Conditional Movement Control Order (‘CMCO’) government offices, including the Inland Revenue Board (‘IRB’ or ‘the Revenue’) are beginning to resume operations. It’s only a matter of time before the taxman comes knocking. If you are dissatisfied with Notices of Assessment or Additional Assessment served upon you, the law provides …
The Tax Position of Companies Limited by Guarantee, Foundations and Non-Profit Organisations
Introduction A business entity in Malaysia is subject to the Income Tax Act 1967 (‘ITA 1967’) to pay taxes for any income generated through its operations. Pursuant to section 2 of the ITA 1967, most business entities are generally taxable given the wide definition of a taxable person. Nevertheless, Malaysia offers tax exemptions to a …
Case Commentaries: Suit Against Boustead Ex Directors – Analysis of Business Judgement Rule
A] INTRODUCTION With the recent announcement from Boustead Holdings Bhd that it had file a suit against its former managements for negligence; breach of fiduciary duties under the Companies Act 1965 and is seeking a sum of £6.4 million (RM35.37 million current value)1, this article will provide an insight as to directors’ duties and principle …
The Laws in Relation to Safety and Health at Work in Malaysia
Legislative Framework of Occupational Safety and Health in Malaysia The legislative structure of occupational safety and health in Malaysia is governed by the Constitution. The main legislations the Occupational Safety and Health Act 1994 (“OSHA 1994”), the Factories and Machinery Act 1967 (“FMA 1967”) and the Petroleum (Safety Measures) Act 1984. This article will focus …
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New SC Guidelines on Conduct of Directors of Listed Corporations and Their Subsidiaries
Introduction On 30th July 2020, the Securities Commission Malaysia (“SC”) issued new Guidelines on Conduct of Directors of Listed Corporations and Their Subsidiaries (“Guidelines”) to strengthen board governance and oversight in listed issuers and their subsidiaries.
Legal Updates on the Solar Energy Industry in Malaysia
Introduction In an effort to pave the way towards a more sustainable and green future, the Government of Malaysia (“Government”) in 2018 announced a target for the country to increase renewable energy in its energy generation mix to twenty percent (20%) by the year 2025. In carrying out this agenda, one of the key renewable …
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Forced Labour Laws: An International Perspective
Introduction The International Labour Organization (“ILO”) Forced Labour Convention (No. 29) defines forced labour as “all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily”. According to ILO, various indicators can be used to determine whether a situation …
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What’s In A Plant: An Analysis of Cases Regarding Qualifying Plant Expenditures
Introduction Section 42 of the Income Tax Act (“ITA 1967”) allows businesses to lower their tax burdens by claiming allowances for capital expenditures incurred for the purpose of business – the Initial Allowance (“IA”)1 and Annual Allowance (“AA”)2 are perhaps the most widely applied of such allowances.
COVID-19: CMCO vs Modified CMCO. The Unwanted Battle between Federal and States
The New Normal: CMCO 5 On 1st of May 2020, Prime Minister Tan Sri Muhyiddin Yassin announced the implementation of the Conditional Movement Control Order (“CMCO”), with the aim of restarting a large portion of the economic sector following the Movement Control Order (“MCO”). This was subsequently gazetted under the Prevention and Control of Infectious …
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