Malaysia legislation
Section 41A
Section 41A
(a)
no assessment shall be made in respect of the chargeable person for any year of assessment by reason of—
(i)
absence of adjusted income, statutory income, assessable income or chargeable income of a chargeable person from any of his sources of income;
or
(ii)
exemption granted to that chargeable person under this Act, the Director General may notify the chargeable person in writing that no assessment shall be made for that year of assessment and provide a computation with regard to it; or
(b)
assessment has been made in respect of the chargeable person, but the chargeable person has no statutory income from petroleum operations, the Director General may notify the chargeable person in writing of an adjustment, if any, made in respect of that petroleum operations and provide a computation with regard to it.
(1A)
Where a chargeable person has furnished to the Director
General a return for a year of assessment in accordance with subsection 30(1) and there is no chargeable income for that year of assessment, then if the chargeable person in respect of such return is aggrieved by any practice of the Director General generally prevailing at the time when the return is made—
(a)
the return shall be deemed to be a notification made by the
Director General under subsection (1) on the day the return is furnished; and
(b)
the notification deemed to have been made under paragraph (a) shall be deemed to have been notified to the
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chargeable person on the day on which the Director General is deemed to have made the notification.
(2)
Where a chargeable person is dissatisfied with the notification made by the Director General under subsection (1) or the return which is deemed under paragraph (1A)(a) to be a notification made by the
Director General, he may within thirty days of being so notified, appeal to the Special Commissioners as if the notification were a notice of assessment and the provisions of this Act relating to appeals shall apply accordingly with such necessary modifications.
(3)
If no notice of appeal against a notification made by the Director
General under subsection (1) or the return which is deemed under paragraph (1A)(a) to be a notification made by the Director General has been given within the time specified under that subsection or any extended period thereof, the notification shall be final and conclusive for the purposes of this Act.
(4)
Nothing in this section shall prejudice the exercise of any power conferred on the Director General by section 39.
(5)
Where a chargeable person has furnished to the Director
General a return for a year of assessment in accordance with subsection 30(1) and there is no chargeable income for that year of assessment, then if the chargeable person in respect of such return alleges that—
(a)
there is an error or a mistake made by the chargeable person in that return, the chargeable person may make an application in writing to the Director General for an amendment to be made in respect of such return; or
(b)
the amount that has been computed in the return is inaccurate by reason of—
(i)
any exemption, relief, remission, allowance or deduction granted for that year of assessment under this Act or any other written law published in the
Gazette after the year of assessment in which the return is furnished;
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(ii)
the approval for any exemption, relief, remission, allowance or deduction is granted after the year of assessment in which the return is furnished; or
(iii)
a deduction not allowed in respect of payment of interest, royalty, services, technical advice, assistance, rent or other payments made under any agreement or arrangement for the use of movable property derived from Malaysia or contract payment to a non-resident contractor which is not due to be paid under the provisions of the law for the time being in force in Malaysia relating to income tax on the day the return is furnished, the chargeable person may make an application in writing to the
Director General for relief.
(6)
The application under subsection (5) shall be made—
(a)
in respect of paragraph (5)(a), within six months from the date the return is furnished;
(b)
in respect of subparagraph (5)(b)(i) or (ii), within five years after the end of the year the exemption, relief, remission, allowance or deduction is published in the Gazette or the approval is granted, whichever is the later; or
(c)
in respect of subparagraph (5)(b)(iii), within one year after the end of the year the payment is made.
(7)
On receiving an application under subsection (5), the Director
General shall inquire into the matter and may make amendment in respect of the amount that has been computed in the return as appears to the Director General to be just and reasonable.
(8)
No amendment shall be allowed under subsection (7) in respect of an error or a mistake as to the basis on which the non-chargeability of the applicant ought to have been computed if the return or statement containing the error or mistake was in fact made on the basis of or in
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accordance with any practice of the Director General generally prevailing at the time when the return was made.
(9)
An application under subsection (5) shall be as nearly as may be in the same form as a notice of appeal under section 43.
(10)
Where the applicant is aggrieved by the Director General’s decision on the application under subsection (5), the following provisions shall apply:
(a)
the applicant may, within six months after being informed of the decision, request in the prescribed form for the
Director General to forward the application to the Special
Commissioners;
(b)
the Director General shall within three months after receiving the request send the application forward as if he were sending an appeal forward pursuant to section 46; and
(c)
the application shall thereupon be deemed to be an appeal and shall be disposed of accordingly.