Issuance of tax invoice
(1) Except as otherwise provided in this section, every registered person who makes any taxable supply of goods or services in the course or furtherance of any business in Malaysia shall issue a tax invoice containing the prescribed particulars in respect of the supply.
(2) Any registered person who—
(a) fails to issue a tax invoice; or
(b) issues a tax invoice which does not contain any of the prescribed particulars,
commits an offence.
(3) Notwithstanding subsection (1), the Director General may, upon request in writing and subject to conditions as he deems fit to impose, approve—
(a) any one or more of the prescribed particulars not to be contained on a tax invoice; or
(b) a tax invoice not to be issued if he is satisfied that it will not be appropriate for the registered person to issue a tax invoice:
Provided that in the case of paragraph (a), the registered person shall include the recipient’s name and address in the tax invoice upon request by the recipient.
(4) Any registered person under subsection (3) who issues a tax invoice which does not contain any of the prescribed particulars as approved by the Director General under paragraph (3)(a) or refuses to issue a tax invoice containing recipient’s name and address upon request by the recipient commits an offence.
(5) Where a recipient who is a registered person provides a document to himself namely a self-billed invoice in respect of a supply of goods or services to him by another registered person, the recipient may apply in writing to the Director General for such self-billed invoice to be treated as a tax invoice if—
(a) the value is not known by the supplier at the time of making the supply;
(b) the supplier and the recipient are both registered persons;
(c) the supplier and the recipient agree in writing to a self-billed invoice; and
(d) the supplier and the recipient agree that the supplier shall not issue a tax invoice in respect of any supply to which this section applies,
and upon approval, the self-billed invoice shall contain prescribed particulars and the Director General may impose any of the prescribed conditions.
(6) Any recipient referred to in subsection (5) who—
(a) issues a self-billed invoice without the approval of the Director General;
(b) issues a self-billed invoice which does not contain any of the prescribed particulars; or
(c) fails to comply with any prescribed condition imposed on him,
commits an offence.
(7) In the case where the self-billed invoice is issued before the time applicable under paragraph 11(2)(a) or (b) or subsection 11(3), the self-billed invoice shall be issued with payment and failing which, the recipient commits an offence.
(8) W h e r e g o o d s d e s c r i b e d i n s u b s e c t i o n 6 5 ( 4 ) o r subparagraph 5(7) of the First Schedule are sold by auction or otherwise than by auction, the auctioneer or the person selling the goods shall issue a document containing the prescribed particulars of the tax chargeable and the document issued to the buyer shall be treated as a tax invoice provided by the taxable person by whom the goods are deemed to be supplied in accordance with subsection 65(4) or subparagraph 5(7) of the First Schedule.
(9) Any auctioneer or person selling the goods referred to in subsection (8) who fails to issue a document or issues a document without the prescribed particulars of the tax chargeable to the buyer commits an offence.
(10) No invoice showing an amount which purports to be a tax shall be issued—
(a) by any person—
(i) on any supply of goods or services which is not a taxable supply;
(ii) on any zero-rated supply; or
(b) by any person who is not a registered person.
(11) Any person who contravenes subsection (10) commits an offence and shall, on conviction, be liable to a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding two years or to both and a penalty of two times the amount of tax.
(12) A tax invoice under subsection (1) is not required to be issued where a registered person makes the following supply:
(a) a zero-rated supply; or
(b) a supply made without consideration on which tax is charged.
(13) Notwithstanding subsection (1), no tax invoice shall be issued for—
(a) any supply of second-hand goods under section 59;
(b) any supply of imported services; or
(c) any supply of treated or processed goods which is deemed to have been supplied by the recipient under section 72.
(14) Any person who issues a tax invoice in contravention of subsection (13) commits an offence.
Production of tax invoices by computer
For the purposes of any provision under this Act in relation to a tax invoice, a registered person shall be treated as having issued a tax invoice to another person notwithstanding that there is no delivery of any equivalent document in paper form to the person if the requisite particulars are recorded in a computer and are—
(a) transmitted or made available to the person by electronic means; or
(b) produced on any material other than paper and is delivered to the person.
Credit note and debit note
Where any taxable supply is made by or to any registered person which involves the issuance and receipt of credit note or debit note under the prescribed circumstances and conditions, the registered person, whether he is the supplier or recipient of the taxable supply, shall make adjustments in his returns accordingly and the credit note and debit note shall contain the prescribed particulars.
Duty to keep records
(1) Every taxable person shall keep full and true records written up to date of all transactions which affect or may affect his liability to tax, including the following records:
(a) all records of goods and services supplied by or to that taxable person including tax invoices, invoices, receipts, debit note, credit note and export declaration forms;
(b) all records of importations of goods; and
(c) all other records as the Director General may determine.
(2) Any record kept under this section shall be—
(a) preserved for a period of seven years from the latest date to which the record relates;
(b) in the national or English language; and
(c) kept in Malaysia, except as otherwise approved by the Director General and subject to the conditions as he deems fit.
(3) Where the record is in an electronically readable form, the record shall be kept in such manner as to enable the record to be readily accessible and convertible into writing.
(4) Where the record is originally in a manual form and is subsequently converted into an electronic form, the record shall be retained in its original form prior to the conversion.
(5) A copy of the record shall be admissible in evidence in any proceedings to the same extent as the record itself.
(6) This section shall apply to any person, other than a taxable person, under subsection 13(3), section 58, paragraph 65(4)(b), and subsections 65(5) and 72(5).
(7) Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
Accounting basis
(1) For the purposes of section 41, every taxable person shall account for tax on an invoice basis in accordance with the time of supply under sections 11, 13, 70, 72 and 73.
(2) Notwithstanding subsection (1), the Director General may, upon application in writing by any registered person and subject to the prescribed conditions, approve the registered person to account for the tax on a payment basis in accordance with the prescribed manner.
(3) Where the registered person has been approved to account for the tax on a payment basis under subsection (2) and elects not to proceed with the payment basis, he may apply in writing to the Director General to account for the tax in accordance with subsection (1).
(4) The Director General may refuse to approve the application made under subsection (2) or (3) as he deems fit.
(5) The Director General may, by notice in writing, revoke the approval under subsection (2) under the prescribed circumstances.
(6) Where there is a change in the basis of accounting, the registered person shall make adjustment of the tax in the prescribed manner.
Credit for input tax against output tax
(1) Any taxable person is entitled to credit for so much of his input tax as is allowable under section 39 to be deducted from any output tax that is due from him.
(2) For the purposes of any tax on a taxable supply of goods or services to a taxable person, any flat rate addition included in the consideration of any supply acquired by a registered person from the approved person under section 74 shall be treated as a tax on the supply.
(3) Subject to subsections (4) and (5), where—
(a) no output tax is due at the end of any taxable period; or
(b) the amount of the credit entitled by virtue of subsection (1) to the taxable person exceeds the output tax,
the amount of the credit or the amount of credit that exceeds the output tax, as the case may be, shall be refunded to the taxable person by the Director General.
(4) The whole or any part of any input tax due as credit to any taxable person in any taxable period may be held over to be credited to any following or subsequent taxable period, either on the taxable person’s own application in writing or on any direction given by the Director General.
(5) Where at the end of any taxable period any amount is due under subsection (3), the Director General may withhold payment of the amount if—
(a) the taxable person fails to furnish the return under section 41 or to provide any information as required by the Director General; or
(b) the Director General has reasonable grounds to believe that the amount should not be the amount due to the person.
(6) No deduction shall be made under subsection (1) nor shall any refund be made under subsection (3), except on a claim made in the prescribed manner and within the prescribed time.
(7) Where any taxable person has made no taxable supply during a taxable period or any previous taxable period, any refund to be made under subsection (3) shall be made subject to the conditions imposed by the Director General as he deems fit.
(8) Subject to subsections (5) and (7), any refund to be made by the Director General under subsection (3) shall be made within the prescribed time.
(9) Except as the Director General may otherwise allow—
(a) where a taxable person fails to pay his supplier the consideration or any part thereof for the supply of any goods or services made by his supplier to him at the end of the period of six months following the date of supply; and
(b) where the taxable person has credited under subsection
(1) or been refunded under subsection (3) the input tax to which the consideration or the part thereof which he failed to pay relates,
the taxable person shall account an amount equal to the input tax which shall be deemed as his output tax.
(10) The taxable person shall account the amount deemed as output tax under subsection (9) in the taxable period after the period of six months has elapsed and in accordance with the method which he was required to use when he first credited the input tax and he shall repay the amount to the Director General at the same time as any tax in respect of the taxable period would be due and payable by him.
(11) Where a taxable person—
(a) has complied with subsection (10); and
(b) pays his supplier the consideration or any part thereof for the supply of goods or services referred to in paragraph (9)(a),
the taxable person shall be entitled to treat an amount equal to the input tax relating to the payment referred to in paragraph (b) as if it were an input tax for the taxable period during which the payment was made.
(12) The whole or any part of tax charged on any supply of goods or services or importation of goods, as may be prescribed, shall be excluded from any credit under this section.
Amount of input tax allowable
(1) The amount of input tax for which any taxable person is entitled to credit in any taxable period shall be so much of the input tax for the period that is allowable and reasonable to be attributable, as may be prescribed, to the following supplies made or to be made by the taxable person in the course or furtherance of any business in Malaysia:
(a) any taxable supply, including a taxable supply which is disregarded under this Act;
(b) any supply made outside Malaysia which would be a taxable supply if made in Malaysia; or
(c) any other supply as may be prescribed.
(2) Input tax attributable to any exempt supply shall be treated as input tax attributable to a taxable supply—
(a) where the value of all exempt supplies would be less than the prescribed amount and less than the prescribed proportion of the total value of all supplies; or
(b) in other prescribed circumstances.
Taxable period
(1) For the purposes of determining a taxable period for a taxable person—
(a) in the case where the total value of all his taxable supplies in the period of twelve months is five million ringgit or more, the first taxable period shall begin from the date he should have been registered under section 21 and end on the last day of the month he should have been registered and the subsequent taxable period shall be a period of one month ending on the last day of any month of any calendar year; or
(b) in the case where the total value of all his taxable supplies in the period of twelve months is less than five million ringgit, the first taxable period shall begin from the date he should have been registered under section 21 and end on the last day of the two months period following the month in which he should have been registered and the subsequent taxable period shall be a period of three months ending on the last day of any month of any calendar year.
(2) A taxable person may apply in writing to the Director General for a taxable period other than the period as determined under subsection (1).
(3) The Director General may, upon receiving any application under subsection (2), allow or refuse the application and where the Director General—
(a) allows the application, the taxable period shall be the period as applied for; or
(b) refuses the application, the taxable period shall remain as determined under subsection (1) or any period as the Director General deems fit to direct.
(4) The Director General may, as he deems fit, reassign the taxable person to any taxable period other than the period to which he has been previously determined under subsection (1) or assigned under subsection (3) or (5).
(5) Notwithstanding subsection (1), the Director General may, upon an application in writing, vary the length of any taxable period or the date on which any taxable period begins or ends if he considers it necessary in the circumstances of any particular case.
Furnishing of returns and payment of tax
(1) Every taxable person shall, in respect of his taxable period, account for the tax in a return as may be prescribed and the return shall be furnished to the Director General in the prescribed manner not later than the last day of the month following after the end of his taxable period to which the return relates.
(2) Where a taxable period has been varied under subsection 40(5) and notwithstanding subsection (1), the return shall be furnished not later than the last day of the thirty days from the end of the varied taxable period.
(3) Any person who—
(a) ceases to be liable to be registered under section 20; or
(b) ceases to be registered under section 24,
shall, not later than thirty days after so ceasing or such later date as the Director General may allow, furnish a return containing particulars as the Director General may determine in respect of that part of the last taxable period during which the person was registered.
(4) Any taxable person who is required to furnish a return under this section shall pay to the Director General the amount of tax due and payable by him in respect of the taxable period to which the return relates not later than the last day on which he is required to furnish the return.
(5) The return referred to in subsections (1), (2) and (3) shall be furnished whether or not there is tax to be paid.
(6) Any person who fails to furnish the return as required under subsection (1), (2) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
(7) Any person who fails to pay to the Director General the amount of tax due and payable under subsection (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
Furnishing of declarations and payment of tax by person other than a taxable person
(1) Where any person other than a taxable person is liable for tax under subsection 13(3), section 58, paragraph 65(4)(b), subsections 65(5) and 72(5), the person shall—
(a) account for the tax in a declaration as may be prescribed and the declaration shall be furnished to the Director General; and
(b) pay to the Director General the amount of tax due and payable by him,
not later than the last day of the subsequent month from the month in which the supply is made or treated as taken place or payment is received under those provisions.
(2) Any person who contravenes subsection (1) in respect of paragraph (a) commits an offence.
(3) Any person who contravenes subsection (1) in respect of paragraph (b) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
Power to assess
(1) Where any taxable person—
(a) fails to apply for registration under section 21;
(b) fails to furnish a return under section 41; or
(c) furnishes a return which to the Director General appears incomplete or incorrect,
the Director General may assess to the best of his judgement the amount of tax due and payable from the taxable person and shall forthwith notify him of the assessment in writing.
(2) Where an amount has been paid to any person as being refund of tax under subsection 38(3) and Part VII which ought not to have been paid to him, the Director General may assess the amount as being tax due and payable from him and shall forthwith notify him of the assessment in writing.
(3) The assessment under subsections (1) and (2) shall not be made more than six years from the date on which the tax was due and payable or from the date on which the refund was made, as the case may be, except where in the opinion of the Director General any form of fraud or wilful default has been committed by or on behalf of any person in connection with or in relation to tax, the Director General may, for the purposes of making good any loss of tax or payment of refunds of tax attributable to the fraud or wilful default, make an assessment at any time.
(4) Where any taxable person has been supplied with or has obtained control of any goods or has imported any goods in the course or furtherance of a business, the Director General may require him to account for the goods.
(5) Where the taxable person fails to account for the goods under subsection (4) by reason that—
(a) the goods have been supplied by him;
(b) the goods are available to be supplied by him;
(c) the goods have been exported or removed by way of supply; or
(d) the goods have been lost or destroyed,
the Director General may assess to the best of his judgement the amount of tax that would have been chargeable in respect of the supply of the goods if they had been supplied by him and shall forthwith notify the taxable person of the assessment in writing.
(6) Where—
(a) the Director General has made an assessment under subsection (1) in respect of paragraph (1)(a) or (b);
(b) the tax assessed has been paid but no return has been furnished for the period to which the assessment relates; and
(c) the person fails to furnish a return for any subsequent taxable period,
the Director General may, as he deems fit, assess an amount of tax greater than that which he otherwise would have considered to be appropriate.
(7) Where it appears to the Director General that the amount which ought to have been assessed in an assessment under this section exceeds the amount which was so assessed, he may—
(a) under the same provision as that assessment was made; and
(b) within the period during which that assessment could have been made,
make a supplementary assessment of the amount of the excess and shall forthwith notify the person in writing accordingly.
(8) Where an amount has been assessed and notified to any person under subsection (1), (2), (5) or (7), it shall be deemed to be an amount of tax due and payable from him and may be recovered accordingly and the amount of tax shall be paid by the person, whether or not that person appeals against the assessment, to the Director General unless or except to the extent that the assessment has been withdrawn or reduced.
(9) The Director General may make any alteration in or addition to the assessment made under this section as he deems fit to ensure the correctness thereof and shall forthwith notify the person in writing.
Director General may disregard or vary certain arrangements
(1) Where the Director General is satisfied that the purpose or effect of any arrangement is directly or indirectly to—
(a) alter the incidence or postpone the time due of any tax which is due and payable by or which would otherwise have been due and payable by any person;
(b) relieve any person from any liability to pay tax or to furnish a return;
(c) reduce or avoid any liability imposed or which would otherwise have been imposed on any person by this Act;
(d) obtain any credit or refund of input tax or any increase thereof for any person which would not otherwise have been obtained; or
(e) hinder or prevent the operation of this Act in any respect,
the Director General may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the arrangement and make such adjustments as he deems fit to counteract any tax advantage obtained or obtainable by that person from or under the arrangement.
(2) For the purposes of this section the Director General may deem—
(a) any person other than a taxable person who is a party to or has participated in any arrangement, to be a taxable person;
(b) any supply of goods or services, whether or not a taxable supply, that is affected by or is part of any arrangement, made to and made by any taxable person or a person deemed to be a taxable person under paragraph (a), to be a taxable supply;
(c) any supply of goods or services that, but for any arrangement affected by this section, would have been the taxable period in which the supply was made, to take place in any taxable period;
(d) any supply of goods or services, that is affected by or is part of any arrangement, to have been made, or consideration for the supply to be given, at open market value.
(3) This section shall not apply to any arrangement carried out for bona fide commercial reasons and had not as one of its main purposes the obtaining of any tax advantage.
(4) For the purposes of this section, “tax advantage” includes—
(a) any avoidance or reduction in the liability of any person to pay tax;
(b) any increase in the entitlement of a person to a credit or refund of input tax;
(c) any reduction in the total consideration payable by any person in respect of any supply of goods or services; or
(d) any postponement of the time when tax is due and payable.
Offsetting unpaid tax against refund
Notwithstanding any provision of this Act, where any person has failed to pay, in whole or in part—
(a) any amount of tax due and payable, any surcharge accruing, or any penalty, fee or any other money payable under this Act;
(b) any amount of sales tax due and payable, any surcharge accruing, or any penalty or any other money payable under the Sales Tax Act 1972 [Act 64];
(c) any amount of service tax due and payable, any surcharge accruing, or any penalty or any other money payable under the Service Tax Act 1975 [Act 151]; or
(d) any amount of customs duty or excise duty,
the Director General may offset, against the unpaid amount referred to in paragraphs (a), (b), (c) or (d), any amount or any part of any amount refundable other than the special refund under section 190 to that person and the Director General shall treat the amount offset as payment or part payment received from that person.
Recovery of tax, etc., as a civil debt
(1) Without prejudice to any other remedy and notwithstanding any appeal against any decision of the Director General under section 126, any tax due and payable, any surcharge accruing, or any penalty, fee or any other money payable under this Act may be recovered by the Minister as a civil debt due to the Government.
(2) Where an invoice shows a supply of goods or services as having taken place with tax chargeable on the supply, there shall be recoverable from the person who issued the invoice an amount equal to—
(a) that which is shown on the invoice as tax; or
(b) if the tax is not separately shown, so much of the total amount shown as payable as is to be taken as representing tax,
on the supply.
(3) Subsection (2) shall apply whether or not—
(a) the invoice is a tax invoice issued under section 33;
(b) the supply shown on the invoice actually takes or has taken place or the amount shown as tax or any amount of tax is or was chargeable on the supply; or
(c) the person issuing the invoice is a taxable person,
and any amount recoverable from the person under subsection (2) shall be recoverable as such and shall otherwise be recoverable as a civil debt due to the Government.
(4) In any proceedings to recover the tax, penalty, surcharge, fee or other money under subsection (1), the production of a certificate signed by the Director General that any tax, penalty, surcharge, fee or other money and the amount shown thereof as due in any return, assessment or notice made under this Act from a person named therein and giving the address of the person and purporting to be a copy of or an extract from any notice of assessment shall be conclusive evidence of the making of the assessment and shall be sufficient authority for the court to give judgement for that amount.
(5) Any penalty, surcharge, fee or other money imposed under this Act shall, for the purposes of this Act and the Limitation Act 1953 [Act 254], the Limitation Ordinance of Sabah [Sabah Cap. 72] and the Limitation Ordinance of Sarawak [Sarawak Cap. 49], as the case may be, be recoverable as if the penalty, surcharge, fee or other money were tax due and payable under this Act and accordingly subsection 6(4) of the Limitation Act 1953, section 3 of the Limitation Ordinance of Sabah and section 3 of the Limitation Ordinance of Sarawak, as the case may be, shall not apply to the penalty, surcharge, fee or other money.
Seizure of goods for the recovery of tax, etc.
(1) Without prejudice to section 43, any goods belonging to the person referred to in section 43 which may be in excise control or customs control or at his place of business may be seized until the tax, penalty, surcharge, fee or other money, or the deficient tax, penalty, surcharge, fee or other money, are paid, or the refund erroneously paid to him is repaid.
(2) Notwithstanding section 51, the Director General may seize or sell any goods belonging to the person liable to pay the tax, penalty, surcharge, fee or other money for recovery of the amount due and payable under section 43 and accrued under section 51 or any outstanding balance thereof.
(3) Where the tax, penalty, surcharge, fee or other money or deficiency, or the refund to be repaid remain unpaid, as the case may be, the Director General may—
(a) after giving not less than thirty days’ notice in writing to the owner or his agent if the name and address of the owner or agent is known to him; or
(b) after due notice in the Gazette if the name and address of the owner or agent is not known to him,
sell the goods.
(4) The proceeds of the sale of any such goods shall be applied to the payment of the tax, penalty, surcharge, fee and other money or deficient tax, penalty, surcharge, fee or other money payable or the refund erroneously paid or other charges which may be due in respect of selling off such goods and the surplus, if any, shall be paid to the owner of such goods and if the owner cannot be found within one month of the sale, such surplus shall be paid into the Federal Consolidated Fund.
(5) Where at the sale of any such goods no sufficient bid is forthcoming to defray the tax, penalty, surcharge, fee or other money payable or deficient tax, penalty, surcharge, fee or other money payable or the refund erroneously paid, as the case may be, the goods shall be forfeited to the Government and shall be disposed of in such manner as the Director General may direct.
(6) Every auction sale under this section—
(a) shall be conducted by or in the presence of a senior officer of goods and services tax; and
(b) may be conducted electronically in the manner as the Director General may determine.
Power to collect tax, etc., from person owing money to taxable person
(1) Where any tax is due and payable, surcharge is accrued, or penalty, fee or other money is payable by any taxable person, the Director General may, by notice in writing a copy of which shall be forwarded to the taxable person at his last-known place of address, require—
(a) any person by whom any money is due or accruing or may become due and payable to the taxable person;
(b) any person who holds or may subsequently hold money for or on account of the taxable person;
(c) any person who holds or may subsequently hold money for or on account of some other person for payment to the taxable person; or
(d) any person having authority from any other person to pay money to the taxable person,
to pay to the Director General forthwith, or within the time as the Director General allows, the money not being salary or wages due or accruing to the taxable person or so much thereof as is sufficient to pay the tax due and payable, surcharge accrued, or penalty, fee or other money payable, if any, by the taxable person as aforesaid.
(2) All payments made pursuant to any notice under this section shall be deemed to be made on behalf of the taxable person and with the authority of the taxable person and all other persons concerned.
(3) For the purposes of this section, the Director General may require any person to give him information as to any money, fund or asset which may be held by the person for or of any money due and payable by him to any other person.
Recovery of tax from persons leaving Malaysia
(1) Where the Director General has reason to believe that any person is about or is likely to leave Malaysia without paying—
(a) any tax due and payable by him;
(b) any penalty payable under section 21;
(c) any surcharge which has accrued under section 51;
(d) any fee payable under sections 77, 170 and 173; or
(e) any other money recoverable from him under this Act,
the Director General may issue to any Director of Immigration a notice containing particulars of the person and the offence committed with a request that the person be prevented from leaving Malaysia unless and until he pays the tax, penalty, surcharge, fee or any other money, or furnishes security to the satisfaction of the Director General for their payment.
(2) Subject to any order issued or made under any written law for the time being in force relating to immigration, any Director of Immigration who receives a notice under subsection (1) in respect of a person shall exercise all measures which may include the removal and retention of any certificate of identity, passport, exit permit or other travel document in relation to that person as may be necessary to give effect to the notice.
(3) The Director General shall cause the notice issued under subsection (1) to be served personally or by registered post on the person to whom the notice relates:
Provided that the non-receipt of the notice by that person shall not invalidate anything done under this section.
(4) Where the person in respect of whom a notice has been issued under subsection (1) produces on or after the date of the notice a written statement signed by the Director General stating that any tax, penalty, surcharge, fee or any other money specified in the notice have been paid or that security has been furnished for its payment, the statement shall be sufficient authority for allowing that person to leave Malaysia.
(5) No legal proceedings shall be instituted or maintained against the Federal Government, a State Government or any public officer in respect of anything lawfully done under this section.
(6) For the purposes of this section, “Director of Immigration” means the Director of Immigration appointed under subsection 3(1a) of the Immigration Act 1959/1963 [Act 155].
Power to require security
Where it appears to the Director General requisite to do so for the due compliance with the provisions of this Act and generally for the protection of the revenue, the Director General may require any person to give security or further security of such amount in such manner as the Director General may determine for the payment of any tax which is or may become due and payable from him.
Payment by instalments
(1) The Director General may allow any tax or penalty to be paid by instalments, under the prescribed circumstances in such amounts and on such dates as the Director General may determine.
(2) Where there is a default in the payment of any one instalment on its due date for the payment of the balance of the amount due and payable or payable, the whole outstanding balance shall become due and payable or payable on that date and shall, without any further notice being served on the person liable to pay the amount due, be subject to a surcharge equal to ten per cent of that balance and the surcharge shall be recoverable as if it were due and payable or payable under this Act.
Imported goods not to be released until tax paid
Any imported goods shall not be released from the customs control until the tax on those goods has been paid in full except as otherwise allowed by the Director General.
Liability of directors, etc.
(1) Notwithstanding any written law to the contrary, but subject to subsection (2) in relation to a company that is being wound up, where tax is due and payable, surcharge is accrued, or penalty, fee or any other money is payable, under this Act by a company, a limited liability partnership, a firm, a society or other body of persons—
(a) the directors of the company;
(b) the compliance officer who is appointed amongst the partners of the limited liability partnership or if no compliance officer is appointed as such, any one or all of the partners thereof;
(c) the partners of the firm; or
(d) officials or committee members of the society or other body of persons,
as the case may be, shall together with the company, limited liability partnership, firm, society or other body of persons be jointly and severally liable for the tax, surcharge, penalty, fee or any other money.
(2) In relation to a company that is being wound up, the directors of the company shall only be liable where the assets of the company are insufficient to meet the amount due, after paying any sum having priority under the Companies Act 1965 [Act 125] in relation to the application of the assets of the company in the winding-up over the tax, surcharge, penalty, fee or any other money.
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).
