Malaysia legislation
Section 40A
Section 40A
(a)
makes default in furnishing a return in accordance with section 30;
(b)
makes an incorrect return by omitting or understating any income in respect of which he is required by this Act to make a return; or
(c)
gives any incorrect information in relation to any matter affecting his own chargeability to tax,
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for any year or years of assessment (hereinafter referred to in this section as the “relevant year or relevant years”), the Director General and that chargeable person may come to an agreement in writing as to the payment by that chargeable person of a sum of money
(hereinafter referred to in this section as the “total amount”) being—
(i)
the amount of tax which has been undercharged or not charged for the relevant year or relevant years in consequence of such default in furnishing a return or making an incorrect return or giving any incorrect information; and
(ii)
the amount of any penalty or penalties which that chargeable person may be required to pay for the relevant year or relevant years pursuant to subsection 51(3) or 52(2)
or both (or where such penalty is abated or remitted under section 63, so much, if any, of the penalty which has not been abated or remitted).
(2)
Where the Director General and a chargeable person have come to an agreement pursuant to subsection (1), the Director General may make a composite assessment in respect of that chargeable person in the total amount.
(3)
As soon as may be after a composite assessment has been made, the Director General shall cause a notice of composite assessment to be served on the chargeable person in respect of whom the composite assessment was made.
(4)
A notice served under subsection (3) shall be in the prescribed form and shall indicate in addition to any other material included therein—
(a)
the relevant year or relevant years;
(b)
the amount or aggregate amount of tax undercharged or not charged in the relevant year or relevant years;
(c)
the amount or aggregate amount of any penalty imposed by virtue of subsection 51(3) or 52(2) or both (or where such
Petroleum (Income Tax)
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penalty is abated or remitted under section 63, so much, if any, of the penalty which has not been abated or remitted);
and
(d)
the place at which payment of the total amount is to be made.
(5)
The total amount shall be collected as if it were part of the tax payable by the chargeable person in respect of whom the composite assessment has been made.
(6)
Notwithstanding any other provision of this Act—
(a)
a composite assessment made under this section shall be final and conclusive for the purposes of this Act; and
(b)
no appeal shall lie against the composite assessment.
Finality of assessment