Malaysia legislation
Section 17C
Section 17C
(a)
altering the incidence of tax which is payable or suffered by or which would otherwise have been payable by any person or suffered by any person;
(b)
relieving any person from any liability which has arisen or which would otherwise have arisen to pay tax or to make a return;
(c)
evading or avoiding any duty or liability which is imposed or would otherwise have been imposed on any person by this
Act; or
(d)
hindering or preventing the operation of this Act in any respect.
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(2)
In exercising his powers under this section, the Director General may require by notice any person to pay to him within the time specified in the notice the amount of tax that would be deducted by that person under this Act in consequence of his exercise of those powers.
(3)
Without prejudice to the generality of subsections (1) and (2), the powers of the Director General conferred by this section shall extend—
(a)
to the charging with tax of any person or persons who if not for any adjustment made by virtue of this section would not be chargeable with tax or would not be chargeable with tax to the same extent; and
(b)
to the charging of a greater amount of tax than would be chargeable if not for any such adjustment.
(4)
Where in consequence of any adjustment made under this section an assessment is made, a right to repayment is refused or a return of a repayment of tax is required, the particulars of the adjustment shall be given with the notice of assessment, with the notice refusing the repayment or with the notice requiring the return of a repayment, as the case may be.
(5)
Transactions—
(a)
between persons one of whom has control over the other; or
(b)
between persons both of whom are controlled by some other person, shall be deemed to be transactions of the kind to which subsection (1)
applies if in the opinion of the Director General those transactions have not been made on terms which might fairly be expected to have been made by independent persons engaged in the same or similar activities dealing with one another at arm’s length.
(6)
For the purposes of this section—
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(a)
a person shall be taken to have control over the other in the same manner as provided under section 139 of the
Income Tax Act 1967 as far as it is applicable and with the necessary modifications; and
(b)
“transaction” means any trust, grant, covenant, agreement, arrangement or other disposition or transaction made or entered into orally or in writing, whether before or after the commencement of this Act, and includes a transaction entered into by two or more persons with another person or persons.
Power to substitute the price on certain transactions