FINANCE (NO. 2) ACT 2017

Sections 5, 9, 10, 13 and 14 come into operation on the coming into operation of this Act.

Sections 6 and 12 have effect for the year of assessment 2018

and subsequent years of assessment.

Section 11 comes into operation on 1 January 2018.

Amendment of section 21a

in the case where the new accounts are made up ending before the corresponding day, thirty days before the end of the new accounts; or

in the case where the new accounts are made up ending after the corresponding day, thirty days before the corresponding day.”.

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Amendment of section 44

by substituting for subparagraph (9)(b)(iii) the following subparagraph:

“(iii) the amount of management expenses incurred by him in that period in connection with—

wakalah fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful fund;

any other fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful fund;

or

any other fee receivable in relation to an investment fund from the family fund;

and”;

by substituting for subparagraph (10)(b)(iii) the following subparagraph:

“(iii) the amount of management expenses incurred by him in that period in connection with—

wakalah fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful;

any other fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful fund;

or

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any other fee receivable in relation to an investment fund from the family fund;

and”; and

by inserting after subsection (10a) the following subsection:

“(10b) The management expenses incurred for the basis period for a year of assessment under—

subsubparagraph (9)(b)(iii)(B) or (C) shall be determined in accordance with the following formula:

A x C

B where

A is the total amount of gross income for that period referred to in subparagraph (9)(a)(iii)

excluding the amount of gross income in respect of wakalah fee;

B is the total amount of gross income for that period referred to in subparagraph (9)(a)(iii)

excluding the amount of gross income in respect of wakalah fee for commission; and

C is the total management expenses incurred under subparagraph (9)(b)(iii); or

subsubparagraph (10)(b)(iii)(B) or (C) shall be determined in accordance with the following formula:

A x C

B where

A is the total amount of gross income for that period referred to in subparagraph (10)(a)(iii), excluding the amount of gross income in respect of wakalah fee;

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B is the total amount of gross income for that period referred to in subparagraph (10)(a)(iii), excluding the amount of gross income in respect of wakalah fee for commission; and

C is the total management expenses incurred under subparagraph (10)(b)(iii).”.

Amendment of section 107c

in paragraph (f), by deleting the word “or”;

in paragraph (h), by substituting for the comma at the end of the paragraph the words “; or” ; and

by inserting after paragraph (h) the following paragraph:

“(i) fails to notify the Director General as required by subsection 21a(3a),”.

Amendment of section 127

in the shoulder note, by deleting the words “and disallowance of interest”;

in subsection (2), by substituting for the words

“subsections (3) and (4)” the words “subsection (3)”;

by deleting subsection (4); and

in subsection (5)—

by substituting for the words “or the financial assistance referred to in subsection (2) or (4)

respectively,”

the words

“referred to in subsection (2)”; and

by substituting for the words “5 per cent” the words

“3 per cent”;

by substituting for the words “10 per cent” the words

“8 per cent”; and

by substituting for the words “16 per cent” the words

“14 per cent”.

Amendment of Schedule 3

any initial allowance made to that person in relation to that asset for any year of assessment;

any annual allowance made to that person in relation to that asset for any year of assessment; and

an amount of annual allowance which would have been made to that person for the basis period in which the asset was classified as held for sale as if the asset had been in use in that basis period for the purpose of a business of his.”.

Amendment of Schedule 6

in subsection (1), by substituting for the word “Where”

the words “Subject to subsection (1a), where”;

by inserting after subsection (1) the following subsection:

“(1a) For the purpose of subsection (1), where the disposer in a disposal referred to in that subsection is not a citizen and not a permanent resident, the acquirer shall retain the whole of that money or a sum not exceeding seven per cent of the total value of the consideration whichever is the less, and (whether or not that amount is so retained) he shall within sixty days after the date of such disposal pay that amount to the Director General.”.

Amendment of Schedule 2

in paragraph 3—

by renumbering the existing paragraph as subparagraph (1); and

in subparagraph 16(a), by deleting the words “or an authority or committee appointed by the Government or a State Government”; and

in subparagraphs 19(5) and 34(1), by substituting for the words “subparagraph 3(b)” wherever appearing the words “subsubparagraph 3(1)(b)”.

Amendment of Schedule 5

by inserting after subsection (1) the following subsection:

“(1a) Where any person other than a taxable person—

fails to furnish a declaration under section 42; or

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furnishes a declaration which to the

Director General appears incomplete or incorrect, the Director General may asses to the best of his judgment the amount of tax and penalty under subsection 42(4), if any, due and payable from such person and shall forthwith notify such person of the assessment in writing.”;

in subsection (3), by inserting after the word “(1)” the words “, (1a)”; and

in subsection (8), by inserting after the words “(1),” the words “(1a),”.

Amendment of section 64

in paragraph (1)(a), by substituting for the words “and

State Governments” the words “, State Governments and local authorities”;

in paragraph (1)(b), by deleting the words “local authority and”; and

in subsection (2), by deleting the words “local authority or” wherever appearing.

Amendment of Second Schedule

by substituting for the shoulder note the following shoulder note:

“Pension fund, etc.”; and

by inserting after the words “written law” the words

“or any levy under the Pembangunan Sumber Manusia

Berhad Act 2001 [Act 612]”.

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