Malaysia legislation
Section 18
Section 18
New section 111d
The principal Act is amended by inserting after section 111c the following section:
“Compensation for over-payment of tax 111d. (1) Subject to this section and subsection 111(4a), an amount of compensation may be payable to a person if the amount refunded to that person for a year of assessment under section 111 is made after—
(a)
ninety days from the date a return for that year of assessment is required to be furnished under this
Act, in the case of return furnished by way of electronic transmission; or
(b)
one hundred and twenty days from the date a return for that year of assessment is required to be furnished under this Act, in any other case.
(2)
For the purposes of this section—
(a)
the “amount refunded” refers to tax paid in accordance with section 107, 107b or 107c for a year of assessment in excess of tax payable, if any, for that year of assessment as specified in a return furnished under section 77 or 77a; and
(b)
the amount of compensation shall be determined in accordance with the following formula:
A x B x 2%
C where A is the amount refunded under section 111 for a year of assessment;
B is the number of days beginning from the first day after the period specified under paragraph
(1)
or (b), as the case may be, until the day that amount is made to a person; and
C is the number of days in a year.
Finance 17
(3)
Without prejudice to sections 91 and 113, where the
Director General discovers that the whole or part of the compensation—
(a)
is wrongly paid to a person, the Director General may require from that person a return of such amount already paid; or
(b)
ought not to have been paid to that person by reason of an incorrect return or incorrect information furnished by that person, the Director General may require from that person a return of such amount already paid and that amount shall without any further notice be increased by a sum equal to ten per cent of that amount which ought not to have been paid, and the amount of compensation wrongly paid or ought not to have been paid and the sum increased shall be recoverable as if it were tax due and payable under this Act.
(4)
This section shall not apply—
(a)
if a person fails to furnish return for a year of assessment in accordance with section 77 or 77a;
(b)
in respect of excess of amount payable referred to in subsections 111(1a) and (1b); or
(c)
if a person appeals against an assessment under section 99.”.
Amendment of section 120