Finance Act 2010

Sections 5, 6, 8, paragraph 9(a), sections 10, 11, 12, 13,

14, 15, 16, 24 and 25 have effect for the year of assessment 2011

and subsequent years of assessment.

Section 7 is deemed to have effect from the year of assessment 2010.

Paragraphs 9(b), (c) and (d) have effect from 1 January 2011 for the year of assessment 2011 and subsequent years of assessment.

Subparagraph 4(a)(i), sections 17, 18, 20, 21, 22 and 23

commence on the coming into operation of this Act.

Section 19 has effect for the year of assessment 2012 and subsequent years of assessment.

amendment of section 2

in subsection (1)—

in the definition of “foreign tax” by inserting after the word “Malaysia” the words “and in relation to paragraph 132(4)(d) or section 132a includes other taxes of every kind imposed by or under the laws of that territory”;

by inserting after subsection (9) the following subsection:

‘(10) Any reference in this Act to—

“Labuan Offshore Business Activity Tax Act 1990”

is construed as reference to “Labuan Business

Activity Tax Act 1990”;

“Labuan Offshore Financial Services Authority”

is construed as reference to “Labuan Financial

Services Authority”;

“offshore business activity” is construed as reference to “Labuan business activity”;

“Offshore Companies Act 1990” is construed as reference to “Labuan Companies Act 1990”;

and

“offshore company” is construed as reference to “Labuan company”.’.

deletion of section 6c

by inserting after subsection (1) the following subsections:

“(1a) For the purpose of subsection (1), where by reason of an insufficiency or absence of gross income of a company from a source consisting of discount or premium for the basis period for a year of assessment, effect cannot be given or cannot be given in full to any amount of discount falling to be deducted to that company for that basis period in relation to that source, that amount which has not been so deducted shall be allowed as a deduction in arriving at the adjusted income of that company from any source or sources consisting of a business for that basis period:

Provided that the proceeds from the issuance of the bond that relates to that amount are utilized wholly by that company for the production of gross income from any source or sources consisting of that business.

This section shall not apply if in the basis period for a year of assessment the bond issued or subscribed forms part of the stock in trade of a business of a company.”; and

Finance 11

in paragraph (d), by inserting after the word “widows”

the word “, widowers”;

in paragraph (f), by substituting for the proviso the following proviso:

“Provided that—

this paragraph shall not apply if the payer has paid the amount referred to in subsection (2)

of that section; and

in paragraph (i), by substituting for the proviso the following proviso:

“Provided that—

this paragraph shall not apply if the payer has paid the amount referred to in subsection (2)

of that section; and

in paragraph (j), by substituting for the proviso the following proviso:

“Provided that—

this paragraph shall not apply if the payer has paid the amount referred to in subsection (2)

of that section; and

in the case of medical treatment or special needs, a receipt on the amount expended; or

“carer” shall not include that individual, his wife or her husband or the child of the individual;

Finance 13

“parents” shall be individuals resident in

Malaysia;

the medical treatment and care services are provided in Malaysia; and

the medical practitioner is registered with the Malaysian Medical Council.”.

amendment of section 49

in paragraph (1)(a), by deleting the words “other than an insurance policy to which subsection (1C) applies”;

in paragraph (1)(c), by inserting after the word “widows”

the word “, widowers”; and

by deleting subsection (1C).

amendment of section 50

, (5), (6), (7) or (8) or subsection 107b(3) or (4) or subsection 107C(9) or (10);”.

amendment of section 107c

by substituting for subsection (8) the following subsection:

“(8) Notwithstanding subsections (1), (3), (4), (5),

and (7), the Director General may direct such company, trust body or co-operative society to make payment by instalments on account of tax which is

Finance 15

or may be payable by that company, trust body or co-operative society for a year of assessment at such times and of such amounts as the Director General may direct and such account of tax shall be deemed for the purpose of subsection (10) to be the revised estimate of tax payable by that company, trust body or co-operative society for that year of assessment:

Provided that, where the direction is made before the ninth month of the basis period for that year of assessment, that company, trust body or co-operative society may furnish a revised estimate of its tax payable for that year of assessment in accordance with subsection (7).”;

in subsection (1a), by substituting for the words

“subsection 77(1) section 77a” the words “subsection 77(1)

or section 77a”; and

by inserting after subsection (4) the following subsections:

“(4a) Any amount of excess in respect of tax payable for a year of assessment which is to be refunded to a person under subsection (1) may be utilized by the Director General for the payment of any other amount of tax which is due and payable

(including any amount of instalments which are due and payable) by that person under this Act, or under the Petroleum (Income Tax) Act 1967 or the Real

Property Gains Tax Act 1976.

Act 719

Where amount of excess in respect of a person is ascertained in accordance with subsection 50(4) of the

Petroleum (Income Tax) Act 1967 or subsection 24(7a)

of the Real Property Gains Tax Act 1976 such excess shall be applied for the payment of tax which is due and payable (including any amount of instalments which are due and payable) by that person under this Act.”.

amendment of section 132

in subsection (1), by inserting after the words “tax under this Act” the words “or other taxes of every kind under any written law”; and

in paragraph (4)(d), by inserting after the words “tax under this Act” the words “or other taxes of every kind under any written law”.

new section 132A

arrangements specified in the order have been made by the Government with the government of any territory outside Malaysia with a view to the exchange of information forseeably relevant to the administration or assessment or collection or enforcement of the taxes under this Act or other taxes of every kind under any written law and any foreign tax of that territory; and

it is expedient that those arrangements should have effect,

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then, so long as the order remains in force, notwithstanding anything in any written law, those arrangements shall have effect in relation to tax under this Act or other taxes of every kind under any written law.

No arrangement under this section can be made if the order in respect of an arrangement under section 132 is in force.

Where any arrangements have effect by virtue of this section, section 138 shall not prevent the disclosure to a duly authorized servant or agent of the government with which the arrangements have been made of such information as is required to be disclosed under the arrangements.

Any order made under this section shall be laid before the Dewan Rakyat.”.

amendment of section 154

“or 132a”.

amendment of schedule 6

by inserting after the word “widows’” the word

“, widowers’ ”; and

by inserting after the word “widow,” the word

“widower,”.

amendment of schedule 7A

in the heading of that Schedule, by inserting after the words “postal franking machine” the words “or digital franking machine”; and

by inserting after item 9 the following items:

“10.

Letter of indemnity.

Section 32 commences on the coming into operation of this Act.

amendment of section 16

Where amount of excess in respect of a person is ascertained in accordance with subsection 111(4a) of the Income Tax Act 1967

or subsection 24(7a) of the Real Property Gains Tax Act 1976

such excess shall be applied for the payment of tax which is due and payable (including any amount of instalments which are due and payable) by that person under this Act.”.

Act 719

Section 36 has effect for the year of assessment 2011 and subsequent years of assessment.

amendment of section 14

Where amount of excess in respect of a person is ascertained in accordance with subsection 111(4a) of the Income

Tax Act 1967 or subsection 50(4) of the Petroleum (Income

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Tax) Act 1967 such excess shall be applied for the payment of tax which is due and payable (including any amount of instalments which are due and payable) by that person under this Act.”.

amendment of schedule 2