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Malaysia legislation

Section 5

of PERATURAN-PERATURAN KAWALAN HARGA DAN ANTIPENCATUTAN (MEKANISME UNTUK MENENTUKAN KEUNTUNGAN TINGGI YANG TIDAK MUNASABAH BAGI BARANGAN) 2016

Seksyen 5

(1)

The formula to determine that profit is unreasonably high based on the mark-up percentage of goods sold or offered for sale in a particular financial year or calendar year shall be as follows:

PB exceeds PA x 100

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Y = T1 or T2, whichever is the highest x 100

x 100

PB = SPB – CB x 100

CB where

PA is the mark-up percentage of the goods sold or offered for sale on the first day of that particular financial year or calendar year;

(a)

in relation to paragraph (a) of SP1, is the mark-up percentage of the goods sold or offered for sale on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

(b)

in relation to paragraph (b) of SP1, is the mark-up percentage of the goods on the date the goods are sold or offered for sale immediately before the cheap sale;

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(c)

in relation to paragraph (c) of SP1, is the mark-up percentage of the new goods on the date the new goods are sold or offered for sale immediately after the introductory price;

(d)

in relation to paragraph (d) of SP1, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

(e)

in relation to paragraph (e) of SP1, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time above the cost after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

or

(f)

in relation to paragraph (f) of SP1, is the mark-up percentage of the goods on the date the goods are sold or offered for sale on the first day of business after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

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(a)

is the selling price of the goods sold or offered for sale on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

(b)

is the selling price of the goods sold or offered for sale immediately before a cheap sale price if the goods are sold or offered for sale at the cheap sale price on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

(c)

is the selling price of the new goods sold or offered for sale immediately after an introductory price if the new goods are sold or offered for sale at the introductory price on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

(d)

is the selling price of the goods on the date the goods are sold or offered for sale for the first time after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year if the goods

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are not sold or offered for sale on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

(e)

is the selling price of the goods sold or offered for sale for the first time above the cost after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale at the price below the cost on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

or

(f)

is the selling price of the goods sold or offered for sale on the first day of business after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year if there is no business operation on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP1 which are taken into account in determining the selling price of the goods;

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Y is the value of T1 or T2, whichever is the highest;

is the difference between the mark-up percentage of the goods sold or offered for sale on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year and the mark-up percentage of the goods sold or offered for sale on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

is the difference between the mark-up percentage of the goods sold or offered for sale on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year and the mark-up percentage of the goods sold or offered for sale on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

(a)

in relation to paragraph (a) of SP2, is the mark-up percentage of the goods sold or offered for sale on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

(b)

in relation to paragraph (b) of SP2, is the mark-up percentage of the goods on the date the goods are sold or offered for sale immediately before the cheap sale;

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(c)

in relation to paragraph (c) of SP2, is the mark-up percentage of the new goods on the date the new goods are sold or offered for sale immediately after the introductory price;

(d)

in relation to paragraph (d) of SP2, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

(e)

in relation to paragraph (e) of SP2, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time above the cost after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

or

(f)

in relation to paragraph (f) of SP2, is the mark-up percentage of the goods on the date the goods are sold or offered for sale on the first day of business after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

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(a)

is the selling price of the goods sold or offered for sale on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

(b)

is the selling price of the goods sold or offered for sale immediately before a cheap sale price if the goods are sold or offered for sale at the cheap sale price on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

(c)

is the selling price of the new goods sold or offered for sale immediately after an introductory price if the new goods are sold or offered for sale at the introductory price on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

(d)

is the selling price of the goods on the date the goods are sold or offered for sale for the first time after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year if the goods

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are not sold or offered for sale on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

(e)

is the selling price of the goods sold or offered for sale for the first time above the cost after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale at the price below the cost on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year; or

(f)

is the selling price of the goods sold or offered for sale on the first day of business after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year if there is no business operation on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP2 which are taken into account in determining the selling price of the goods;

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(a)

in relation to paragraph (a) of SP3, is the mark-up percentage of the goods sold or offered for sale on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

(b)

in relation to paragraph (b) of SP3, is the mark-up percentage of the goods on the date the goods are sold or offered for sale immediately before the cheap sale;

(c)

in relation to paragraph (c) of SP3, is the mark-up percentage of the new goods on the date the new goods are sold or offered for sale immediately after the introductory price;

(d)

in relation to paragraph (d) of SP3, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

(e)

in relation to paragraph (e) of SP3, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time above the cost after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

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or

(f)

in relation to paragraph (f) of SP3, is the mark-up percentage of the goods on the date the goods are sold or offered for sale on the first day of business after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

(a)

is the selling price of the goods sold or offered for sale on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

(b)

is the selling price of the goods sold or offered for sale immediately before a cheap sale price if the goods are sold or offered for sale at the cheap sale price on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

(c)

is the selling price of the new goods sold or offered for sale immediately after an introductory price if the new goods are sold or offered for sale at the introductory price on the first day of the third financial

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year or calendar year immediately preceding that particular financial year or calendar year;

(d)

is the selling price of the goods on the date the goods are sold or offered for sale for the first time after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are not sold or offered for sale on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

(e)

is the selling price of the goods sold or offered for sale for the first time above the cost after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale at the price below the cost on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year; or

(f)

is the selling price of the goods sold or offered for sale on the first day of business after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year if there is no business operation on

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the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP3 which are taken into account in determining the selling price of the goods;

PB is the mark-up percentage of the goods referred to in SPB on the date the goods are sold or offered for sale in that particular financial year or calendar year;

SPB is the selling price of the goods sold or offered for sale on any date in that particular financial year or calendar year;

CB is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SPB which are taken into account in determining the selling price of the goods.

(2)

For the purposes of subregulation (1), the goods referred to in PA and PB shall be the goods of the same description or same class.

(3)

For the purposes of subregulation (1), where X1 does not exists due to—

(a)

the goods being sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year; or

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(b)

the business being in existence only on or after the first day of that particular financial year or calendar year,

X1 shall be calculated according to the following formula:

x 100

where

(a)

in relation to paragraph (a) of SP1, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year; or

(b)

in relation to paragraph (b) of SP1, is the mark-up percentage of the goods on the date the goods are sold or offered for sale on the first day of business on or after the first day of that particular financial year or calendar year;

(a)

is the selling price of the goods on the date the goods are sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year if the goods have never been sold or offered for sale before the first day of that particular financial year or calendar year;

or

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(b)

is the selling price of the goods sold or offered for sale on the first day of business on or after the first day of that particular financial year or calendar year if the business is not in existence before the first day of that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP1 which are taken into account in determining the selling price of the goods.

(4)

For the purposes of subregulation (1), where—

(a)

Y is equals to zero due to the mark-up percentage of the goods sold or offered for sale on the first day of the first, second and third financial years or calendar years immediately preceding that particular financial year or calendar year being the same; or

(b)

Y is less than zero due to the decrease in the mark-up percentage of the goods sold or offered for sale on the first day of the third, second and first financial years or calendar years immediately preceding that particular financial year or calendar year, consecutively,

Y shall be calculated according to the following formula:

Y = T1 or T2, whichever is the highest

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x 100

x 100

x 100

where

Y is the value of T1 or T2 , whichever is the highest;

is the difference between the first increase in the mark-up percentage of the goods sold or offered for sale in the first financial year or calendar year after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year and the first increase in the mark-up percentage of the goods sold or offered for sale in the second financial year or calendar year after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

is the difference between the first increase in the mark-up percentage of the goods sold or offered for sale in the second financial year or calendar year after the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year

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and the first increase in the mark-up percentage of the goods sold or offered for sale in the third financial year or calendar year after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

in relation to SP1, is the first increase in the mark-up percentage of the goods sold or offered for sale after the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

is the selling price of the goods sold or offered for sale on the date of the first increase in the mark-up percentage of the goods in the first financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale on the first day of the first financial year or calendar year immediately preceding that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP1 which are taken into account in determining the selling price of the goods;

in relation to SP2, is the first increase in the mark-up percentage of the goods sold or offered for sale after the first day of the second financial year or calendar year immediately preceding

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that particular financial year or calendar year;

is the selling price of the goods sold or offered for sale on the date of the first increase in the mark-up percentage of the goods in the second financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale on the first day of the second financial year or calendar year immediately preceding that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP2 which are taken into account in determining the selling price of the goods;

in relation to SP3, is the first increase in the mark-up percentage of the goods sold or offered for sale after the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

is the selling price of the goods sold or offered for sale on the date of the first increase in the mark-up percentage of the goods in the third financial year or calendar year immediately preceding that particular financial year or calendar year if the goods are sold or offered for sale on the first day of the third financial year or calendar year immediately preceding that particular financial year or calendar year;

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is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP3 which are taken into account in determining the selling price of the goods.

(5)

For the purposes of subregulation (1), where Y does not exists due to—

(a)

the goods being sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year;

(b)

the business being in existence only on or after the first day of that particular financial year or calendar year; or

(c)

the goods not being sold or offered for sale in the first, second or third financial year or calendar year immediately preceding that particular financial year or calendar year,

Y shall be calculated according to the following formula:

x 100

X2 = SP2 – C2

x 100

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where

Y is the value of T1;

is the difference between the first increase in the mark-up percentage of the goods sold or offered for sale in that particular financial year or calendar year after the first day of that particular financial year or calendar year and the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year;

in relation to SP1, is the first increase in the mark-up percentage of the goods sold or offered for sale after the first day of that particular financial year or calendar year;

is the selling price of the goods sold or offered for sale on the date of the first increase in the mark-up percentage of the goods sold or offered for sale after the first day of that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP1 which are taken into account in determining the selling price of the goods;

(a)

in relation to paragraph (a) of SP2, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time on or after the first day of

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that particular financial year or calendar year;

(b)

in relation to paragraph (b) of SP2, is the mark-up percentage of the goods on the date the goods are sold or offered for sale on the first day of business on or after the first day of that particular financial year or calendar year; or

(c)

in relation to paragraph (c) of SP2, is the mark-up percentage of the goods on the date the goods are sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year;

(a)

is the selling price of the goods on the date the goods are sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year if the goods have never been sold or offered for sale before the first day of that particular financial year or calendar year;

(b)

is the selling price of the goods sold or offered for sale on the first day of business on or after the first day of that particular financial year or calendar year if the business is not in existence before the first day of that particular financial year or calendar year; or

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(c)

is the selling price of the goods on the date the goods are sold or offered for sale for the first time on or after the first day of that particular financial year or calendar year if the goods are not sold or offered for sale in the first, second or third financial year or calendar year immediately preceding that particular financial year or calendar year;

is the price paid on the acquisition or production of the goods, and the cost incurred in selling the goods, referred to in SP2 which are taken into account in determining the selling price of the goods.

(6)

Notwithstanding subregulation (1), the profit is not unreasonably high if

PB exceeds PA due to the reduction of CB in the course of or in furtherance of business.

Formula to determine unreasonably high profit based on margin percentage of goods

Read in full context — PERATURAN-PERATURAN KAWALAN HARGA DAN ANTIPENCATUTAN (MEKANISME UNTUK MENENTUKAN KEUNTUNGAN TINGGI YANG TIDAK MUNASABAH BAGI BARANGAN) 2016 →
Section 5 — PERATURAN-PERATURAN KAWALAN HARGA DAN ANTIPENCATUTAN (MEKANISME UNTUK MENENTUKAN KEUNTUNGAN TINGGI YANG TIDAK MUNASABAH BAGI BARANGAN) 2016