Malaysia legislation
Section 4
of INCOME TAX (TIN BUFFER STOCK CONTRIBUTIONS AND REPAYMENTS) ACT 1974
Section 4
(2)
Where for a year of assessment (in this section referred to as the relevant year) the relevant contributor has statutory income
Income Tax (Tin Buffer Stock
Contributions and Repayments)
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(in this subsection referred to as the relevant statutory income)
from the relevant business, ascertained under section 42 of the
Income Tax Act—
(a)
if the amount of the relevant statutory income exceeds the amount of the contributions (hereinafter in this section referred to as the relevant contributions) paid by him in the year preceding the relevant year in respect of tin concentrates sold by him in the course of the carrying on of the relevant business, the excess shall be deemed to be the amount of his statutory income for the relevant year from the relevant business for the purposes of section 42 of the Income Tax Act;
(b)
if the amount of the relevant statutory income is equal to the amount of the relevant contributions, he shall be deemed not to have any statutory income for the relevant year from the relevant business for the purposes of section 42 of the Income Tax Act;
(c)
if the amount of the relevant contributions exceeds the amount of the relevant statutory income, he shall be deemed not to have any statutory income for the relevant year from the relevant business for the purposes of section 42 of the Income Tax Act and the excess shall be deemed to be an adjusted loss incurred by him in the year preceding the relevant year in the relevant business for the purposes of subsection 44(2) of the Income Tax Act.
(3)
Where for the relevant year the relevant contributor has no statutory income ascertained under section 42 of the Income Tax
Act from the relevant business—
(a)
if there is any adjusted loss incurred by him in the year preceding the relevant year in the relevant business, the amount of the relevant contributions shall be added to the amount of such adjusted loss, and the aggregate amount shall be deemed to be the adjusted loss incurred by him in the year preceding the relevant year in the relevant business, for the purposes of subsection 44(2) of the
Income Tax Act;
(b)
in any other case, the amount of the relevant contributions shall be deemed to be an adjusted loss incurred by him
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in the year preceding the relevant year in the relevant business, for the purposes of subsection 44(2) of the
Income Tax Act.
(4)
Where for the relevant year the relevant contributor has statutory income from the relevant business, ascertained under section 42 of the Income Tax Act, the amount of repayments (in this section referred to as the relevant repayments) made to him in the year preceding the relevant year in respect of any contributions paid by him in respect of tin concentrates sold by him in the course of the carrying on of the relevant business, shall be added to the amount of that statutory income and the aggregate amount shall be treated as the amount of his statutory income for the relevant year from the relevant business, for the purposes of section 42 of the Income Tax Act.
(5)
Where for the relevant year the relevant contributor has no statutory income from the relevant business, ascertained under section 42 of the Income Tax Act—
(a)
if there is no adjusted loss incurred by him in the year preceding the relevant year in the relevant business, the amount of the relevant repayments shall be deemed to be the amount of his statutory income for the relevant year from the relevant business, for the purposes of section 42
of the Income Tax Act;
(b)
if there is such an adjusted loss—
(i)
where the amount of the relevant repayments exceeds the amount of such adjusted loss, the excess shall be deemed to be the amount of his statutory income for the relevant year from the relevant business, for the purposes of section 42
of the Income Tax Act;
(ii)
where the amount of the relevant repayments is equal to the amount of such adjusted loss, he shall be deemed not to have any statutory income for the relevant year from the relevant business, for the purposes of section 42 of the Income Tax Act;
(iii)
where the amount of such adjusted loss exceeds the amount of the relevant repayments, the excess shall be deemed to be the amount of the adjusted
Income Tax (Tin Buffer Stock
Contributions and Repayments)
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loss incurred by him in the year preceding the relevant year in the relevant business, for the purposes of subsection 44(2) of the Income Tax
Act.
(6)
In the event of any repayment (in this section referred to as the late repayment) in respect of any contributions paid by the relevant contributor in respect of tin concentrates sold by him in the course of the carrying on of the relevant business, being made after the relevant business has ceased to be carried on, the late repayment shall be treated for the purposes of subsections (4) and
(5)
as having been made in the year preceding the last year of assessment for the assessment of the income from the relevant business, and as having been of an amount equal to the actual amount of the repayment:
Provided that—
(a)
pending the determination of the amount of the late repayment or aggregate amount of the late repayments, the relevant contributor may be treated for the purposes of this subsection as having received late repayments of an aggregate amount equal to the aggregate amount of all the contributions paid by him in respect of tin concentrates sold by him in the course of the carrying on of the relevant business, reduced by the amount of all repayments made to him before the relevant business ceased to be carried on, in respect of any contributions paid by him in respect of tin concentrates sold by him in the course of the carrying on of the relevant business;
(b)
where the relevant contributor is treated in the manner described in paragraph (a) of this proviso then, on the determination of the actual amount of the late repayment or aggregate amount of the late repayments—
(i)
if the amount of the income tax assessed in accordance with that paragraph is less than the amount of the income tax which ought to have been assessed if the actual amount of the late repayment or aggregate amount of the late repayments had been determined, an additional assessment shall be made accordingly;
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(ii)
if the amount of the income tax assessed in accordance with that paragraph exceeds the amount of the income tax which ought to have been assessed if the actual amount of the late repayment or aggregate amount of the late repayments had been determined, the assessment shall be reduced by a sum equal to the amount of the excess.
(7)
The right to receive a repayment in respect of any contributions paid by the relevant contributor in respect of tin concentrates sold by him in the course of the carrying on of the relevant business, shall not be assignable except with the consent of the Director
General.
(8)
The relevant contributor shall surrender his contribution certificates to the Director General for transmission to the Accountant
General.
Treatment for tax purposes, of repayments where there is no election