Malaysia legislation
Section 14
Section 14
(a)
if the deduction has been made in respect of a debt estimated to have become wholly irrecoverable, any sum recovered on account of the debt by that chargeable person in the relevant period shall be treated as gross income of that chargeable person for the relevant period; and
(b)
if the deduction has been made in respect of a debt estimated to have become partly irrecoverable and there has been received by that chargeable person in respect of the debt a sum (or an aggregate of sums) in excess of the amount of that part of the debt not estimated to have become irrecoverable, so much of that excess as is recovered by that chargeable person in the relevant period shall be treated as gross income of that chargeable person for the relevant period.
(2)
Where—
(a)
a deduction has been made under subsection 15(1) or subsection 16(4) in computing the adjusted income of the relevant chargeable person for the basis period for a year of assessment (that basis period being prior to the relevant period) in respect of any outgoing or expense (including any sum payable, rent payable, expense incurred or rates payable of the kind described in paragraph 15(1)(a), (b), (c)
or (d) or subsection 16(4), as the case may be); and
(b)
the whole or any part of a debt in respect of any such outgoing, expense, sum, rent, expense or rates is released in the relevant period, the amount released shall be treated as gross income of the relevant chargeable person for the relevant period.
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(3)
Where during the relevant period—
(a)
recovered expenditure (within the meaning of the
First Schedule) is recovered by or on behalf of the relevant chargeable person; and
(b)
the total recovered expenditure so recovered exceeds the aggregate of—
(i)
the residual expenditure (within the meaning of that
Schedule) at the date on which that period begins; and
(ii)
the qualifying exploration expenditure (within the meaning of that Schedule) incurred by the relevant chargeable person during that period, the amount of the excess shall be treated as gross income of the relevant chargeable person for the relevant period.
(4)
Where—
(a)
a deduction has been made under subsection 16(4) in computing the adjusted income of the relevant chargeable person for the basis period for a year of assessment (that basis period being prior to the relevant period) in respect of any expenses of the kind described in subsection 16(4); and
(b)
the whole or any part of any such expenses is recovered in the relevant period, the amount recovered shall be treated as gross income of the relevant chargeable person for the relevant period.