Finance (No. 2) Act 2023 · Updated to 29 Dec 2023 · Chapter 17
227. Incorrect Top-up Tax return of Constituent Entity
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Constituent Entity that makes an incorrect Top-up
Tax return by omitting or understating any tax of which the Constituent Entity is required under section 202 to make a Top-up Tax return on behalf of itself or another Constituent Entity, or any natural person who makes an incorrect Top-up Tax return of a Constituent Entity by omitting or understating any tax of which he is required under section 202
to make a Top-up Tax return on behalf of that
Constituent Entity; or
Constituent Entity or any natural person that gives any incorrect information in relation to any matter affecting the chargeability to tax of that
Constituent Entity or the chargeability to tax of another Constituent Entity, shall, be guilty of an offence and shall, on conviction, be liable to a fine of not less than twenty thousand ringgit and not more than one hundred thousand ringgit and shall pay a special penalty of double the amount of tax which has been undercharged in consequence of the incorrect
Top-up Tax return or incorrect information or which would have been undercharged if the return or information had been accepted as correct.
Where any—
Constituent Entity makes an incorrect Top-up Tax return by omitting or understating any tax of which the Constituent Entity is required by this Part to make a Top-up Tax return on behalf of itself or another
Constituent Entity, or any natural person makes an incorrect Top-up Tax return of a Constituent Entity by omitting or understating any tax of which he is required by this Part to make a Top-up Tax return on behalf of that Constituent Entity; or
Constituent Entity or any natural person gives any incorrect information in relation to any matter affecting the chargeability to tax of that Constituent Entity or the chargeability to tax of another Constituent
Entity, then, if no prosecution under subsection (1) has been instituted in respect of the incorrect Top-up Tax return or incorrect information, the Director General may require the
Constituent Entity or the natural person to pay a penalty equal to the amount of tax which has been undercharged in consequence of the incorrect Top-up Tax return or incorrect information or which would have been undercharged if the return or information had been accepted as correct and, if that
Constituent Entity or that natural person pays that penalty
(or, where the penalty is abated or remitted under section 234, so much, if any, of the penalty as has not been abated or remitted), the Constituent Entity or the natural person shall not be liable to be charged on the same facts with an offence under subsection (1).
Wilful evasion of Multinational Top-up Tax or Domestic