Taxable persons
Subject to this Act, sales tax shall be computed and paid by— (a) any taxable person who carries on a business in Malaysia, whether for profit or otherwise, in respect of taxable goods manufactured by him in the course of such business; (b) any person who imports taxable goods into Malaysia, in respect of such goods.
Direction to treat persons as a single taxable person
(1) Notwithstanding sections 12 and 13, where the Director General is satisfied that any separation of business activities is artificial, he may make a direction under this section directing that the persons named in that direction shall be treated as a single taxable person carrying on the activities of the business described in that direction and that single taxable person shall not continue to carry on the activities of such business unless he is licensed within twenty-one days from the date the direction is served on the last such persons of from such later date as may be specified in that direction. (2) For the purposes of subsection (1), in determining whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those business activities are closely bound to one another by financial, economic and organizational links. (3) The Director General may make a direction under this section naming any person if the Director General is satisfied— (a) that the person is manufacturing or has manufactured taxable goods; (b) that the activities in the course of which the person manufactures or has manufactured those taxable goods form only part of certain activities in the business and that the other activities in that business (whether or not they are similar to the activities carried on by that person) are being carried on concurrently or previously, or both, by one or more other persons; and (c) that if all taxable goods manufactured in that business were taken into account, the person carrying on that business would, at the time of such direction, be required to be licensed by virtue of section 13. (4) Any direction made under this section shall be served on each of the persons named in it. (5) Where, after a direction has been given under this section specifying a description of the business, it appears to the Director General that any person who has not been named in that direction is manufacturing taxable goods in the course of activities which should be regarded as part of the activities of the business, the Director General may make and serve on that person a supplementary direction referring to the earlier direction and the description of business specified in it, and adding that person’s name to those of the persons named in the earlier direction with effect from— (a) the date on which that person began to manufacture the taxable goods; or (b) if the date of the earlier direction was later than the date mentioned in paragraph (a), the date with effect from which the single taxable person referred to in the earlier direction is licensed under subsection (1). (6) Where, immediately before any direction (including a supplementary direction) is made under this section, any person named in the direction is licensed in respect of taxable goods manufactured by him as mentioned in subsection (3) or (5), his licence shall be revoked by the Director General with effect from— (a) the date the single taxable person is licensed under subsection (1); or (b) such later date as may be specified in that direction, and upon the revocation of his licence he together with all the persons named in the direction shall be treated as a single taxable person under this section. (7) In relation to a business specified in a direction under this section, the persons named in such direction together with any person named in a supplementary direction relating to that business (being the persons who together are to be treated as a single taxable person) are in subsections (8) and (9) referred to as “the constituent members”. (8) Where any direction is made under this section, then for the purposes of this Act— (a) the single taxable person carrying on the business specified in the direction shall be licensed in such name as the persons named in the direction may jointly nominate by notice in writing given to the Director General not later than fourteen days after the date the direction is served on the last of such persons or, in default of such a nomination, in such name as may be specified in the direction; (b) any taxable goods manufactured by one of the constituent members in the course of the activities of the single taxable person shall be treated as being taxable goods manufactured by the single taxable person; (c) each of the constituent members shall be jointly and severally liable for any sales tax payable by the single taxable person; (d) without prejudice to paragraph (c), any failure by the single taxable person to comply with any requirement imposed by or under this Act shall be treated as a failure by each of the constituent members severally; and (e) subject to paragraphs (a) to (d), the constituent members shall be treated as a partnership carrying on the business of the single taxable person and any question as to the scope of the activities of that business at any time shall be determined accordingly. (9) Where it appears to the Director General that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (8)(c) and (d) and the Director General gives notice to that effect, that person shall not have any liability by virtue of those paragraphs for anything done after the date specified in that notice and accordingly on that date he shall be treated as having ceased to be a member of the partnership referred to in paragraph (8)(e).
Certificate under section 11B to be admissible
Notwithstanding anything contained in any other written law or rule of evidence to the contrary, where in any proceedings a document purporting to be a certificate under the hand of the Director General in respect of a decision made by him under section 11B is produced, such document shall be admissible in evidence and shall be accepted as sufficient evidence of the facts therein stated and the Director General shall not be required to give evidence in respect of such decision unless the court otherwise orders.
Application for licence, issue, etc.
(1) Every person who manufactures taxable goods in the course of business shall apply to the senior officer of sales tax in the prescribed form to be licensed as a licensed manufacturer, and subject to section 14, no person shall manufacture taxable goods in the course of business unless such person is in possession of a licence issued under subsection (3). (2) (Deleted by Act 337). (3) Subject to subsection (4), and to being satisfied that a licence is required in the terms of paragraph 12(a) and subsection (1) of this section, the Director General shall issue a licence in the prescribed form. (4) Before any licence is granted under this section, or where a licence has been granted under this section, the Director General may require the person applying for the licence, or the licensed manufacturer, as the case may be, to give such security for the due compliance by that person with the provisions of this Act and generally for the protection of the revenue as the Director General thinks fit; and where the Director General is at any time dissatisfied with any security given, he may require a new security in lieu thereof, or in addition thereto; and in default of such new security being given the Director General may suspend any licence previously granted. During any such suspension the holder of any licence granted shall be deemed to be unlicensed. (5) Any person licensed as a manufacturer shall carry on business only at the place or places specified in the licence issued under subsection (3).
Surrender and revocation of licences
(1) If any taxable person ceases to carry on business, he shall forthwith surrender his licence to the Director General. (2) If any taxable person ceases to carry on business as such, or dies, or being a company is dissolved, the Director General shall revoke the licence. (3) If any taxable person fails to act or is found acting contrary to sections 17, 17A, 18, 19, or subsections 22(1) and (2), the Director General may revoke the licence, and if such person continues to carry on the same business after such revocation, he shall be deemed to carry on the business without a licence under this Act. (4) Before revoking a licence under subsection (2), the Director General shall serve a notice of revocation of the licence on the person to whom the licence was issued and that licence is revoked with effect from the date as specified in the notice. (5) Before revoking a licence under subsection (3), the Director General shall serve a notice on the person to whom the licence was issued informing him of the proposed revocation and giving him an opportunity to make representation on the matter. (6) Where the Director General is satisfied, after considering the representation of a person made under subsection (5) that the licence of the person should be revoked, he shall serve a notice of revocation of the licence on the person informing him that his licence is revoked from the date specified in the notice.
Exemptions from licensing
The Minister may by order exempt, subject to such conditions as he may deem fit to impose, any class of persons from subsection 13(1): Provided that, notwithstanding that any person is exempted under such order, such person may apply to be licensed as a licensed manufacturer, whereupon the provisions of this Act shall apply to such person.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 1 November 2012 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).