Departure Levy Act 2019

This Act come into operation on a date to be appointed by the

Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different parts or different provisions of this Act.

Notwithstanding subsection (2), the Minister may by notification in the Gazette, appoint the effective date for the charging and levying of departure levy under this Act.

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Notwithstanding subsection (1), this Act shall apply to any person whatever his nationality or citizenship, beyond the geographical limits of Malaysia and its territorial waters, if the person is a foreign operator under this Act.

Subject to the general direction and supervision of the Director

General, a senior officer of customs shall have and exercise all powers conferred on the Director General by or under this Act.

Any officer of customs shall have the duties and powers to enforce and ensure due compliance with the provisions of this Act.

Any person, other than an officer of customs may be appointed by, or employed with the concurrence of, the Director General for any duty or service relating to departure levy and such person shall be deemed to be an officer of customs for that duty or service.

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The Director General may, by authorization in writing, confer on any person appointed or employed under subsection (4), all or any of the powers of a senior officer of customs by or under this Act, for a period not exceeding ninety days in respect of any one authorization.

It shall not be an offence for any person to refuse to comply with any request, demand or order made by any officer of customs acting or purporting to act under this Act if such officer refuses to declare his office and produce his authority card or badge on demand being made by the person.

Any person, not being an officer of customs, who unlawfully wears, uses, possesses or displays, otherwise than in the course of a stage play or other theatrical performance—

Subject to subsection 8(1), every person having possession or control over any document, information, return or declaration or copies of such document, information, return or declaration, in relation to the business or the value of the departure levy by any person, who at any time, otherwise than for the purposes of this Act or with the express authority of the Director General—

No person having any official duty or being appointed or employed under this Act or who is referred to in subsection 8(1) shall be required to produce in any matters or proceedings in any court or tribunal any document, information, return or declaration or to divulge or communicate in the matters or proceedings of any matter or thing, coming under his notice in the performance of his duties under this

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Act, except as may be necessary for the purposes of carrying into effect the provisions of this Act or in order to institute a prosecution or in the course of a prosecution for any offence committed under this

Act.

Notwithstanding subsection (1), the Minister may, as he deems fit, allow the Director General to transmit or communicate any document, information, return or declaration referred to in subsection 7(1) or anything contained in such document, information, return or declaration to any other person.

The departure levy shall be charged and levied on any person who leaves Malaysia—

Any person who contravenes subsection (1) or paragraph (2)(a), commits an offence and shall, on conviction be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

fix the rate of the departure levy to be charged and levied; and

vary or amend the rate of the departure levy fixed under paragraph (a).

Any order made under subsection (1) shall be laid before the

Dewan Rakyat.

Unless the Minister otherwise directs, no departure levy refundable under subsection (1) shall be refunded, unless the person by whom the departure levy was paid makes a claim in writing to the

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Director General within one year from the date on which the order ceases to have effect in whole or in part and the claim shall contain such particulars as the Director General may require.

The Director General may reduce or disallow any departure levy refundable under subsection (1) to the extent that the refund would unjustly enrich the person by whom the departure levy was paid.

The application referred to in subsection (1) shall be made not less than thirty days before the commencement of the operation of carrying any person leaving Malaysia.

Any operator who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Where there is a change of an agent appointed under subsection (1), the foreign operator shall appoint another agent to act on his behalf not less than thirty days before the changes and

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such agent shall apply for registration within thirty days after the date of appointment.

Any foreign operator who contravenes subsection (1) or (2)

commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

The Director General shall have the power to register any operator or agent of foreign operator who has not applied under section 13 with effect from the first day of the following month after the information became known to the Director General.

The Director General shall notify the person registered under subsection (2) in the manner as he deems fit.

who intends to cease carrying on operations of an operator;

or

who intends to cease being an agent of a foreign operator, shall notify the Director General in writing of that fact sixty days before the date of cessation.

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Upon receipt of the notification under subsection (1), the

Director General may cancel the registration of the registered person from such date as the Director General may determine.

Any registered person who contravenes subsection (1), commits an offence and shall on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Any record kept under this section shall be preserved for a period of seven years from the latest date to which the record relates.

Where the record is in an electronically readable form, the record shall be kept in such manner as to enable the record to be readily accessible and convertible into writing.

Where the record is originally in a manual form and is subsequently converted into an electronic form, the record shall be retained in its original form prior to the conversion.

Any registered person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

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account for the departure levy due on a monthly period in the return as may be prescribed; and

furnish the return to the Director General in the prescribed manner not later than the last day of the month following the end of the monthly period to which the return relates.

Any registered person who ceases to be registered under section 16 shall, not later than thirty days after such cessation or such later date as the Director General may allow, furnish a return as the

Director General may determine in respect of that part of the last period during which the person was registered.

The return referred to in subsections (1) and (2) shall be furnished whether or not there is any departure levy to be paid.

Any registered person who fails to furnish a return commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Where any departure levy due and payable is not paid wholly or partly by any registered person after the last day on which the departure levy is due and payable under subsection (1) and no prosecution is instituted, the registered person shall pay—

Any registered person who fails to pay to the Director General the amount of the departure levy due and payable under subsection (1), commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

In addition to any fine imposed by the court under subsection (3), the court may order any registered person who is convicted for an offence under subsection (3) to pay the penalty as specified in subsection (2).

No prosecution for an offence under subsection 20(3) shall be instituted against the registered person who has paid the amount of the departure levy due and payable, and the penalty specified under subsection 20(2) within the period specified in the same subsection.

any operator or agent fails to apply for registration;

any registered person fails to furnish a return; or

any registered person furnishes a return which appears to the Director General to be incomplete or incorrect, the Director General may assess to the best of his judgement the amount of departure levy due and payable, and the penalty payable under subsection 20(2), if any, by such person, and the Director

General shall notify such person of the assessment in writing.

The assessment under subsection (1) shall not be made more than six years from the date on which the departure levy was due and payable.

the Director General makes an assessment under paragraph 22(1)(b) or (c);

the departure levy assessed has been paid but no return has been furnished for the period to which the assessment relates; and

the registered person fails to furnish a return for any subsequent period,

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the Director General may, as he deems fit, assess the amount of the departure levy greater than that which otherwise would have been considered to be appropriate.

Where it appears to the Director General that the amount which ought to have been assessed in the assessment under subsection (1)

exceeds the amount which was so assessed, the Director General may under the same provisions as that assessment was made and within the period during which that assessment could have been made, make a supplementary assessment and shall notify the registered person in writing accordingly.

The amount of departure levy due and payable and penalty payable shall be paid by the registered person whether or not that registered person applies for a review under section 59 against the assessment.

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any person by whom any money is due or accruing or may become due and payable to the registered person;

any person who holds or may subsequently hold money for or on account of the registered person; or

any person having authority from any other person to pay money to the registered person, to pay to the Director General forthwith, or within such period as the

Director General allows, such money, not being salary or wages due or accruing to the registered person, or so much of such money as is sufficient to pay the departure levy due and payable, accruing or penalty payable by the registered person.

All payments made pursuant to a notice under subsection (1)

shall be deemed to be made on behalf of the registered person and with the authority of the registered person and all other persons concerned.

The demand referred to in subsection (1) shall be made by the

Director General within six years from the date the refund was made.

Upon receipt of the demand under subsection (2), the person shall repay the refund erroneously paid to him.

In any proceedings to recover the departure levy or penalty if any, under subsection (1), the production of a certificate signed by the

Director General giving the name and address of the registered person and the amount of the departure levy due and payable or penalty payable, if any, shall be sufficient evidence of the amount as due and payable or payable by him and shall be sufficient authority for the court to give judgment for that amount.

Any penalty imposed under this Act shall, for the purposes of this Act and the Limitation Act 1953 [Act 254], the Limitation

Ordinance of Sabah [Sabah Cap. 72] or the Limitation Ordinance of

Sarawak [Sarawak Cap. 49], as the case may be, be recoverable as if it were penalty payable under this Act and accordingly subsection 6(4)

of the Limitation Act 1953, section 3 of the Limitation Ordinance of

Sabah or section 3 of the Limitation Ordinance of Sarawak, as the case may be, shall not apply to that penalty.

In relation to a company that is being wound up, the directors of the company shall only be so liable where the assets of the company are insufficient to meet the amount due, after paying any sum having priority under the Companies Act 2016 [Act 777] in relation to the application of the assets of the company in winding up over the departure levy or penalty.

any person or class of persons from the payment of the whole or any part of the departure levy;

any registered person from charging the whole or any part of the departure levy;

any person authorised under paragraph 9(2)(b) from charging the departure levy; or

any operator from the requirement to register.

Notwithstanding subsection (1), the Minister may, in any particular case and subject to such conditions as he deems fit, exempt—

Where a person who has been granted exemption under paragraph (1)(a) or (2)(a) has paid any of the departure levy to which the exemption relates and has been granted approval by the Minister for a refund of the amount of departure levy which has been paid, the person shall be entitled to such refund.

The Director General may, if he deems fit and subject to any conditions as he may determine, remit penalty under subsection 20(2).

Where a person who has been granted remission under subsection (1) or (2) has paid any departure levy or penalty to which the remission relates, he shall be entitled to a refund of the amount of the departure levy or penalty paid which had been remitted.

A claim under subsection (1) shall be made to the

Director General within one year from the time such overpayment or erroneous payment occurred or such entitlement of the refund occurred.

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The Director General may reduce or disallow any refund in respect of the claim under subsection (1) to the extent that the refund would unjustly enrich the person referred to in subsection (1).

Except as provided under this section, the Director General shall not be liable to refund an amount paid to the person referred to in subsection (1) by way of departure levy by virtue of the fact that it was not departure levy due and payable to him.

A claim under this section shall be supported by such evidence as required by the Director General.

in any way assaults, obstructs, hinders, threatens or molest the officer of customs in the discharge of his functions under this Act or the regulations made under this Act; or

fails to give reasonable facilities or assistance to any officer of customs in the exercise of his functions under this Act or the regulations made under this Act, commits an offence and shall, on conviction, be punished with imprisonment for a term not less than six months and not exceeding three years or to a fine not exceeding five hundred thousand ringgit or to both.

be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both; and

where the offence relates to the deficiency of departure levy, be liable to a penalty equal to the deficient amount.

omits from a return any information in relation to any matter affecting his liability to charge departure levy or the amount of the departure levy collected;

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makes any false statement or false entry in any return furnished, or claim or application made, under this Act or the regulations made under this Act;

gives any false answer, whether in writing or otherwise to any question asked or request for information made in accordance with the provisions of this Act or the regulations made under this Act;

prepares or maintains, or authorizes the preparation or maintenance of, any false book of accounts or other false records, or falsifies or authorizes the falsification of any book of accounts or records; or

makes, uses or authorizes the use of any fraud, artifice or contrivance, commits an offence.

Any person who commits an offence under subsection (1) shall, on conviction—

Where in any proceedings under this section it is proved that a false statement or false entry, whether by omission or otherwise, has been made in any return furnished, or claim or application made, under this Act or the regulations made under this Act by or on behalf of any person or in any books of account or other records maintained by or on behalf of any person, that person shall be presumed until the contrary is proved to have made that false statement or false entry with intent to evade departure levy.

Any reference in this section to a person who makes, uses or authorizes the use of any fraud, artifice or contrivance includes a

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reference to a person who, without the authority of the Director

General or a senior officer of customs—

For the purposes of subsection (4), “data” includes any computer program or part of a computer program.

In any prosecution under this section, any evasion of departure levy shall be deemed to be with the knowledge of the accused unless the contrary be proved by the accused.

When any of the information is proved to be untrue or incorrect in whole or in part, it shall be no defence to allege that the information or any part of the information was furnished inadvertently or without criminal or fraudulent intent, or was misinterpreted or not fully interpreted by an interpreter provided by the informant.

may be charged severally or jointly in the same proceedings with the company, limited liability partnership, firm, society or the body of persons; and

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if the company, limited liability partnership, firm, society or the body of persons is found guilty of the offence, shall be deemed to be guilty of that offence and shall be liable to the same punishment or penalty as an individual unless, having regard to the nature of his functions in that capacity and to all circumstances, he proves—

that the offence was committed without his knowledge; or

by that person’s employee in the course of his employment;

by that person’s agent when acting on behalf of that person;

or

by the employee of that person’s agent when acting in the course of his employment by the person’s agent or otherwise on behalf of the person’s agent acting on behalf of that person, such person shall be liable to the same punishment or penalty for every such act, omission, neglect or default of the person’s employee or agent, or of the employee of the person’s agent.

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A transcript of any particulars contained in a return or other document relating to departure levy, if it is certified under the hand of the Director General or an officer authorized by him to be a true copy of the particulars, shall be prima facie evidence of the facts stated therein.

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No statement made or document produced by or on behalf of any person shall be inadmissible in evidence against the person in any proceedings against him to which this section applies, by reason only of the fact that he was or may have been induced to make the statement or produce the document by any inducement, promise or threat made by any person having any official duty under, or being appointed for the due administration of, this Act or the regulations made under this Act.

Nothing in this Act shall affect the operation of Chapter IX of

Part III of the Evidence Act 1950.

Where in any proceedings it is proved that any false statement or entry has been made in any return rendered under this Act by or on behalf of any person or in any books of account or records of any person—

Where any officer of customs has obtained any document or other evidence in exercise of his powers under this Act, the document or copy of the document or other evidence, as the case may be, shall be prima facie evidence of the facts stated therein, notwithstanding anything to the contrary in any written law.

Where any document which is to be used in any proceedings against any person for an offence under this Act or the regulations made under this Act is in a language other than the national language

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or English language, a translation of the document into the national language or English language shall be admissible in evidence where the translation is accompanied by a certificate of the person who translated the document setting out that it is an accurate, faithful and true translation and the translation had been done by the person at the instance of any officer of customs.

Subsection (7) shall apply to a document which is translated, regardless of whether the document was made in or outside Malaysia, or whether possession of the document was obtained by any officer of customs in or outside Malaysia.

Notwithstanding any other written law, in any proceedings under this Act or the regulations made under this Act, any electronic notice or any electronic record of an electronic notice or any copy or print out thereof which is—

where the fine does not exceed five thousand ringgit, the maximum period shall be two months;

where the fine exceeds five thousand ringgit but does not exceed ten thousand ringgit, the maximum period shall be four months; or

where the fine exceeds ten thousand ringgit but does not exceed twenty thousand ringgit, the maximum period shall be six months, with two additional months for every ten thousand ringgit after the first twenty thousand ringgit of the fine until a maximum period of six years is reached.

No costs or damages arising from seizure to be recoverable unless seizure without reasonable or probable cause

any offence under this Act or any regulations made under this Act as an offence which may be compounded;

the criteria for compounding such offence; and

the method and procedure for compounding such offence.

Any senior officer of customs may, with the consent in writing of the Public Prosecutor, at any time before a charge is being instituted, compound any offence prescribed as an offence which may be compounded by making a written offer to the person reasonably suspected of having committed the offence to compound the offence upon payment to the Director General of a sum of money not exceeding fifty per centum of the amount of the maximum fine to which the person would have been liable to if he had been convicted of the offence, within such time as may be specified in the written offer.

An offer under subsection (2) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted, and where the amount specified in the offer is not paid within the time specified in the offer or such extended time as the

Director General may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

Where an offence has been compounded under subsection (2), no prosecution shall be instituted in respect of the offence against the person to whom the offer to compound was made, and any document or thing seized in connection with the offence may be released by the

Director General, subject to such terms as the Director General thinks fit.

All sums of monies received by the Director General under this section shall be paid into and form part of the Consolidated Fund.

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Where any person is found not guilty of an offence under this

Act, and if he has paid the amount of departure levy due and payable or penalty payable in respect of the offence charged, the court may order the amount paid to be refunded to such person where no notice of appeal is filed.

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

If any books, documents or papers which are produced in evidence or liable to inspection in any civil or criminal proceeding contain any entry in which any informer is named or described or which might lead to his discovery, the court shall cause all the passages to be concealed from view or to be obliterated so far only as may be necessary to protect the informer from discovery.

If in the trial for any offence under this Act, the court, after full enquiry into the case, believes that the informer wilfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true, or if in any other proceedings the court is of the opinion that justice cannot be fully done between the parties thereto without the discovery of the informer, it shall be lawful for the court to require the production of the original complaint, if in writing, and permit enquiry and require full disclosure, concerning the informer.

personally upon the person;

by sending it to the person by registered post; or

by electronic service.

The notice, direction or other document sent by registered post to a person shall be deemed to have been served on that person at the time at which it would have been delivered to that person in the

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ordinary course of the post if the notice, direction or other document was addressed—

Where a person has given his consent for a notice to be served on him through the electronic service, the notice shall be deemed to have been served at the time when the electronic notice is transmitted to his account through the electronic service.

the filing or furnishing of any application, return or any other document; and

the service of any notice, direction, order, permit or any other document.

Where an electronic notice is made and transmitted to the

Director General, the Director General shall not be liable for any loss or damage suffered by the registered user by reason of any error or omission of whatever nature or however arising appearing in any electronic notice obtained by the registered user under the electronic service if the error or omission was made in good faith and in the

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ordinary course of the discharge of the duties of the Director General or occurred or arose as a result of any defect or breakdown in the electronic service or in the equipment used for the provision of the electronic service.

Any electronic notice made and transmitted by the registered user shall be deemed to have been filed, furnished or served at the time the electronic notice is received by the Director General.

For the purposes of this section, “registered user” means any person who is authorized in writing by the Director General to gain access to and use the electronic service.

Where this Act provides for a notice or any other document to be under the hand of any officer of customs, the notice or the other document shall be signed in manuscript by the officer of customs.

A notice or any other document served for the purposes of this

Act and purporting to be signed in manuscript by the Director General or an officer authorized by him shall be presumed, until the contrary is proved, to have been so signed.

produce a letter of authorization from the registered person whom the person represents; and

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where any prescribed form is required to be submitted for the purposes of the matters being transacted, submit the form that has been signed by the registered person, except where otherwise allowed by a senior officer of customs.

Where an application has been made under subsection (1), the

Director General shall make the review and notify the decision of the review to the person, where practicable, within sixty days from the date the application.

No review may be made in any matter relating to compound.

An application under subsection (1) shall be made in the prescribed form and manner.

Liquidator of registered person to give notice of winding up, and set aside departure levy

give notice of the winding up of the company to the Director

General within fourteen days after the resolution is effective or order is made;

before disposing of any of the assets of the company, set aside such sum out of the assets as appears to the Director

General to be sufficient to provide for any departure levy that is or will thereafter become due and payable in respect of the company; and

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pay the departure levy referred to in paragraph (b).

A liquidator of any company referred to in subsection (1) who fails to give notice to the Director General within the time specified in paragraph (1)(a) or fails to provide for payment of the departure levy as required under paragraph (1)(c) shall be personally liable for any departure levy that is or will become due and payable as aforesaid.

Any liquidator who fails to comply with subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Where two or more persons are appointed as liquidators or are required by law to carry out the winding up of the company referred to in subsection (1), the obligations and liabilities attaching to a liquidator under this section shall attach to all such persons jointly and severally, subject to a right of contribution between themselves as in cases of contract.

Any person appointed as receiver who fails to give notice to the

Director General within the time specified in subsection (1) or fails to provide for payment of the departure levy as required by that subsection shall be personally liable for any departure levy that is or will become due and payable as aforesaid.

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Any receiver who fails to comply with subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or imprisonment for a term not exceeding one year or to both.

Where two or more persons are appointed as receivers, the obligations and liabilities attaching to a receiver under this section shall attach to all such persons jointly and severally, subject to a right of contribution between themselves as in cases of contract.

Without prejudice to the generality of subsection (1), the

Minister may prescribe—

Any regulations made under this section may prescribe an act or omission in contravention of the regulation to be an offence and may prescribe penalties of a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding one year or both for such offence.

Before modifying the terms and conditions, notice must be given to the person bound by the terms and conditions stating—

The modified terms and conditions shall not take effect in less than fourteen days from the date the notice is issued under subsection (2).

Where the terms and conditions were initially imposed by the

Director General pursuant to this Act, the terms and conditions as modified by the Minister shall be deemed to have been imposed by the Director General.

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For the purposes of this section, “modify” means add to, delete or vary.

The Director General may register the person referred to in subsection (1) on or after the effective date.

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Where any person who made payment to travel to leave

Malaysia partly before the effective date and partly on or after the effective date, the departure levy shall be charged and payable by the person for the part payment made on or after the effective date.

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Act 813

LIST OF AMENDMENTS

Amending Law

Short title

In force from

Act A1674

Departure Levy (Amendment) Act 2022

01-01-2023

Act 851

Finance (No. 2) Act 2023 30-12-2023

46

Act 813

LIST OF SECTIONS AMENDED

Section

Amending Authority

In force from

11

Act 851 30-12-2023 62A

Act A1674 01-01-2023

62B

Act A1674 01-01-2023