Malaysia legislation
Section 21
of LABUAN BUSINESS ACTIVITY TAX (AMENDMENT) (NO. 2) ACT 2024
Section 21
“Offences and penalties
The principal Act is amended by inserting after section 23
the following sections:
“Default in furnishing return of profits 23a. (1) Any person who makes default in furnishing a return of profits in accordance with section 5 or 10 in respect of any one year of assessment shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than twenty thousand ringgit and not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.
(2)
In any prosecution under subsection (1), the burden of proving that a return of profits has been made shall be upon the accused person.
(3)
Where a person has been convicted of an offence under subsection (1), the court may make a further order that the person shall comply with the relevant provision of this Act under which the offence has been committed within thirty days, or such other period as the court deems fit, from the date the order is made.
(4)
Where in relation to a year of assessment a person makes default in furnishing a return of profits in accordance with section 5 or 10 and no prosecution under subsection (1)
has been instituted in relation to that default—
(a)
the Director General may require that person to pay a penalty equal to treble the amount of tax which, before any repayment under this Act, is payable for that year; and
(b)
if that person pays that penalty, or where the penalty is abated or remitted under subsection 24(5), so much, if any, of the penalty as has not been abated or remitted, he shall not be liable to be charged on the same facts with an offence under subsection (1).
(5)
The Director General may require any person to pay an additional amount of penalty in accordance with subsection (4)
in respect of any additional tax which is payable by that person for a year of assessment.
Penalty for incorrect return of profits and information 23b. (1) Any person who—
(a)
makes an incorrect return of profits by omitting or understating any net profit of which he is required by this Act to make a return of profits on behalf of himself or another person; or
(b)
gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person, shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than twenty thousand ringgit and not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.
(2)
Where a person—
(a)
makes an incorrect return of profits by omitting or understating any net profit of which he is required by this Act to make a return of profits on behalf of himself or another person; or
(b)
gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person, then, if no prosecution under subsection (1) has been instituted in respect of the incorrect return of profits or incorrect information, the Director General may require that person to pay a penalty equal to the amount of tax which
Labuan Business Activity Tax (Amendment) (No. 2)
17
has been undercharged in consequence of the incorrect return of profits or incorrect information or which would have been undercharged if the return of profits or information had been accepted as correct; and, if that person pays that penalty, or where the penalty is abated or remitted under subsection 24(5), so much, if any, of the penalty as has not been abated or remitted, he shall not be liable to be charged on the same facts with an offence under subsection (1).
Recovery of penalty 23 c. Any penalty imposed on any person under subsection 23a(4), 23a(5) or 23b(2) shall be collected as if it were part of the tax payable by that person, but shall not be treated as tax so payable for the purposes of any provision of this Act other than sections 11, 13b and 14.”.
Amendment of section 24