Malaysia legislation
Section 21
Section 21
The principal Act is amended by inserting after section 109d the following section:
“Deduction of tax on distribution of income of unit trust to unit holder other than individual 109da. (1) This section shall only apply to income of a unit trust that is a retail money market fund exempt under paragraph 35a of Schedule 6 in respect of income distributed to a unit holder other than an individual.
(2)
Where a unit trust, in this section referred to as the payer, distributes income which is derived from Malaysia to a unit holder, the payer shall upon distributing the income, deduct therefrom tax at the rate applicable to such income and shall within one month after distributing such income, render an account and pay the amount of that tax to the Director General:
Provided that the Director General may under special circumstances allow extension of time for tax deducted to be paid over.
(3)
Where the payer fails to pay any amount due from him under subsection (2), that amount which the payer fails to pay shall be increased by a sum equal to ten per cent of that amount, and the amount which the payer fails to pay
Act 833
and the increased sum shall be a debt due from the payer to the Government and shall be payable forthwith to the Director General.
(4)
Pursuant to this section, where any amount is paid to the Director General by the payer or recovered by the Director General from the payer—
(a)
in relation to a resident unit holder, the Director General shall, in the manner provided by section 110, apply that amount towards payment of the tax charged on the unit holder to whom the payer distributes income to which that amount relates; and
(b)
if the payer has not deducted that amount in distributing the income under subsection (2) with respect to which that amount relates, the payer may recover that amount from that unit holder as a debt due to the payer.
(5)
Notwithstanding the foregoing subsections, where the amount due from the payer under subsection (2) is increased by a sum under subsection (3), the Director General may in his discretion for any good cause shown remit the whole or any part of that sum and, where the amount remitted has been paid, the Director General shall repay the same.
(6)
Section 110 shall apply mutatis mutandis to tax deducted under this section other than to tax deducted in respect of a non-resident unit holder.”.
Amendment of section 120