Malaysia legislation
Section 23B
Section 23B
(a)
makes an incorrect return of profits by omitting or understating any net profit of which he is required by this
Act to make a return of profits on behalf of himself or another person; or
(b)
gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person, shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than twenty thousand ringgit and not exceeding one million
Labuan Business Activity Tax 47
ringgit or to imprisonment for a term not exceeding three years or to both.
(2)
Where a person—
(a)
makes an incorrect return of profits by omitting or understating any net profit of which he is required by this
Act to make a return of profits on behalf of himself or another person; or
(b)
gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person, then, if no prosecution under subsection (1) has been instituted in respect of the incorrect return of profits or incorrect information, the
Director General may require that person to pay a penalty equal to the amount of tax which has been undercharged in consequence of the incorrect return of profits or incorrect information or which would have been undercharged if the return of profits or information had been accepted as correct; and, if that person pays that penalty, or where the penalty is abated or remitted under subsection 24(5), so much, if any, of the penalty as has not been abated or remitted, he shall not be liable to be charged on the same facts with an offence under subsection (1).
Recovery of penalty