Malaysia legislation
Section 140C
Seksyen 140C
(2)
In ascertaining the adjusted income of a person from each of his sources consisting of a business for the basis period for a year of assessment, no deduction from the gross income from that source for that period shall be allowed in respect of any interest expense in connection with or on any financial assistance in a controlled transaction granted directly or indirectly to that person which is in excess of the maximum amount of interest as determined under any rules made under this Act.
(3)
In this section—
“control” has the meaning assigned to it in subsection 140A(5A);
“controlled transaction” shall be construed as a financial assistance—
(a)
between persons one of whom has control over the other; or
(b)
between persons both of whom are controlled by some other person (in this section referred to as “third person”);
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Undang-Undang Malaysia
“financial assistance” includes loan, interest bearing trade credit, advances, debt or the provision of any security or guarantee;
“interest expense” means—
(a)
interest on all forms of debt; or
(b)
payments economically equivalent to interest
(excluding expenses incurred in connection with the raising of finance).”.
Pindaan seksyen 154