Malaysia legislation
Section 15A
Section 15A
(2)
This section applies to any instrument with respect to which it is shown to the satisfaction of the Collector—
(a)
that the effect is to transfer a beneficial interest in property from one company with limited liability to another such company, and that the companies are associated where one is the beneficial owner of not less than ninety percent of the issued share capital of the other, or that a third company with limited liability is the beneficial owner of not less than ninety per centum of the issued share capital of each of the aforesaid companies;
(b)
that the transfer of the property of the associated companies is to achieve greater efficiency in operation; and
(c)
that the company referred to as the transferee company under this section is incorporated in Malaysia.
30 Laws of Malaysia ACT 378
(3)
The ownership referred to in subsection (2) is ownership either directly or through another company or other companies, or partly directly and partly through another company or other companies, and the Sixth Schedule shall apply for the purposes of this section.
(4)
This section shall not apply to any instrument unless it is also shown to the satisfaction of the Collector that the instrument was not executed in pursuance of or in connection with an arrangement under which—
(a)
the consideration, or any part of the consideration, for the transfer was to be provided or received, directly or indirectly, by a person other than a company which at the time of the execution of the instrument was associated within the meaning of this section with either the transferor or the transferee (meaning, respectively, the company from whom and the company to whom the beneficial interest was transferred); or
(b)
the said interest was previously transferred, directly or indirectly, by such a person; or
(c)
the transferor and the transferee were to cease to be associated within the meaning of this section by reason of a change in the percentage of the issued share capital of the transferee in the beneficial ownership (within the meaning of this section) of the transferor or a third company within the period of three years from the date of the conveyance or transfer; or
(d)
the transferee company disposes of the property that it has acquired within three years from the date of the conveyance or transfer of the property, and, without prejudice to the generality of paragraph (a), an arrangement shall be treated as falling within at paragraph if it is one whereunder the transferor or the transferee, or a company associated with either as there-mentioned, was to be enabled to provide any of the consideration, or was to part with any of it, by or in consequence of the carrying out of a transaction or transactions involving, or any of them
Stamp 31
involving, a payment or other disposition by a person other than a company so associated.
(5)
Where any claim for exemption from duty under this section has been allowed, it is subsequently found that any declaration or other evidence furnished in support of the claim is untrue, the exemption from duty shall be revoked and duty shall be chargeable, together with interest thereon at the rate of six per centum per annum, from the date on which the duty which the conveyance or transfer ought to be stamped with the proper amount of duty.
(6)
Where any claim for exemption from duty under this section has been allowed and any of the circumstances specified under subsection (4) occurs, each company which was a party to the instrument shall notify the Collector in writing of the circumstances of the occurrence within thirty days from the date of the occurrence.
(7)
Where a claim is made for exemption under this section, the Collector may require the delivery to him of a statutory declaration in such form as he may direct made by an advocate and solicitor, or, in the case of Sabah and Sarawak, an advocate, of the High Court, and of such further evidence, if any, as he deems necessary.
Voluntary conveyance inter vivos