Finance Act 2007 · Updated to 1 Oct 2018 · Part II · Saving and Transitional Provisions
49. Non-deduction of tax
Official textFrom Laws of Malaysia Online, unchanged
A company shall not be entitled to deduct tax from any dividend paid to its shareholder if—
as at 31 December 2007 the 108 balance of that company is nil;
as at any date from 1 January 2008 to 31 December 2013
the 108 balance or reduced 108 balance is reduced to nil pursuant to section 47; or
the company has exercised an irrevocable option under section 50.
Where a company—
is not entitled to deduct tax under this section from a dividend paid to any of its shareholders; and
issues to any of its shareholders certificates which purport to show that an amount of tax has been deducted under this Part from dividend paid to the shareholders, an amount equal to what would have been the total amount of tax deducted or deemed to have been deducted, if sections 40,
41 and 42 had been applicable, from the gross amount of the dividend (ascertained in accordance with section 42) paid to all its shareholders at the time that the dividend was paid to those shareholders shall be an amount due from the company to the
Government and that amount shall be increased by an amount not exceeding the amount due; and the Director General shall serve on the company a written requisition in the prescribed form calling upon the company to pay the amount due and the increase on the amount due, and that amount shall be a debt due from the company to the Government and that debt shall be payable forthwith to the Director General upon the service of the requisition:
Provided that where the company satisfies the Director General that such certificate has been issued only to particular shareholders specified by the company, that debt shall be reduced to an amount ascertained by reference to the certificates issued to those particular shareholders.
Finance 51
Where a company is not entitled to deduct tax on any dividend paid pursuant to subsection (1), the provisions of the principal Act shall apply to such dividend.
Any debt due under this section shall be recoverable as if it were tax due and payable under the principal Act.
Chapter III
Amendments to the Stamp Act 1949
Chapter IV
Amendments to the Petroleum (Income Tax) Act 1967
Chapter V