Malaysia legislation
Section 22
of LEMBAGA PEMBANGUNAN INDUSTRI PEMBINAAN MALAYSIA (AMENDMENT) ACT 2011
Section 22
The principal Act is amended by substituting for section 34
the following section:
Quoted provision
Section 34
(2)
For every contract referred to in subsection (1), whether stamped or not, having a contract sum of above five hundred thousand ringgit, the contractor shall be liable to pay to the
Lembaga a levy at the rate of a quarter per centum of the contract sum.
(3)
Every contractor shall disclose fully to the Lembaga all the facts and circumstances affecting his liability to pay the levy.
(4)
The Lembaga shall notify the contractor of the amount of levy to be paid within such period as it may prescribe and such notification by the Lembaga shall be prima facie evidence as to the amount of levy to be paid by the contractor.
(5)
The Minister may, by order published in the Gazette, vary the rate of levy specified in subsection (2).
(6)
In the case where there are more than one contractor who are parties to a contract referred to in subsection (1), each and every such contractor are jointly and severally liable to pay the levy, unless otherwise proven to the contrary to the satisfaction of the Lembaga.
Lembaga Pembangunan Industri Pembinaan Malaysia
(Amendment)
(7)
Where the Lembaga has reason to believe that any condition in any contract referred to in subsection (1) has the direct or indirect effect of—
(a)
altering the contract sum subjected to levy which is payable or which would otherwise have been payable;
(b)
relieving any person from any liability which has arisen or which would otherwise have arisen to pay the levy;
(c)
evading or avoiding any duty or liability which is imposed or would otherwise have been imposed on any person by this Act; or
(d)
hindering or preventing the operation of this Act in any respect, the Lembaga may, without prejudice to such validity as it may have in any other respect or for any purpose, disregard or vary such condition and make such adjustments as it thinks fit, with a view to counteracting the whole or any part of such direct or indirect effect of such condition in the contract.
(8)
In exercising its powers under subsection (7), the
Lembaga may—
(a)
treat the total value of any construction works or any part of it to be the value of the contract sum;
(b)
make such computation or amendment of any value of any construction works or contract as may be necessary to revise any person’s liability to pay the levy or impose any liability to pay the levy on any person in accordance with its exercise of those powers; and
(c)
make such amendments as may be necessary to revise any person’s liability to pay the levy or impose any liability to pay the levy on any person in accordance with its exercise of those powers.
(9)
Where a contractor fails to pay any levy due within the prescribed period by the Lembaga, the contractor shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or four times the amount of such levy payable, whichever is higher.
(10)
A contractor who contravenes subsection (1) or (3)
shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit.”.
New section 34A