Power of Minister to grant relief
(1) The Minister may, by order in the Gazette and subject to such conditions as he deems fit to impose, relieve any person or class of persons from the payment of the whole or any part of the tax which may be charged and levied on any taxable supply of goods or services or any importation of goods or class of goods.
(2) Any order made under subsection (1) shall be laid before the Dewan Rakyat.
(3) The Minister may, in any particular case and subject to such conditions as he deems fit to impose—
(a) relieve any person or class of persons from the payment of the whole or any part of the tax which may be charged and levied on any taxable supply of goods or services or any importation of goods or class of goods; or
(b) relieve any taxable person or class of taxable persons from charging and collecting tax on any taxable supply of goods or services.
(4) Where a taxable person supplies goods or services to a person or a class of persons referred to in subsection (1) or paragraph (3)(a), the taxable person shall be relieved from charging and collecting tax due and payable on the supply.
(5) Where any person who is granted relief under subsection (1) or paragraph (3)(a) fails to comply with the condition subject to which the relief was granted, any tax that has been the subject of the relief shall become due and payable by the person at the time when the condition ceased to be fulfilled.
(6) Where a recipient is a taxable person who has not paid tax on his acquisition or importation by virtue of—
(a) relief from payment of tax under subsection (1) or paragraph (3)(a); or
(b) another taxable person making a taxable supply to him is relieved from charging tax under paragraph (3)(b),
such recipient shall be deemed to have incurred and claimed input tax on the supply.
Refund of tax, etc., overpaid or erroneously paid
(1) Any person who has overpaid or erroneously paid any tax, surcharge, penalty, fee or any other money may make a claim thereof in the prescribed form to the Director General within six years from the time the overpayment or erroneous payment occurred and the Director General may refund the tax, surcharge, penalty, fee or any other money, as the case may be, after being satisfied that the person has properly established the claim.
(2) The Director General may reduce or disallow any refund due under this section to the extent that the refund would unjustly enrich the person referred to in subsection (1).
(3) A claim under this section shall be supported by such evidence as required by the Director General.
(4) Except as provided by this section, the Director General shall not be liable to refund an amount paid to the person referred to in subsection (1) by way of tax by virtue of the fact that it was not tax due and payable to him.
(5) This section shall not apply to a claim for refund under sections 10, 17 and 18.
Bad debt relief
(1) Subject to regulations made under this Act, any person who is or has ceased to be a taxable person may make a claim to the Director General for a relief for bad debt on the whole or any part of the tax paid by him in respect of the taxable supply if—
(a) the person has not received any payment or part of the payment in respect of the taxable supply from the debtor six months from the date of supply or the debtor has become insolvent before the period of six months has elapsed; and
(b) sufficient efforts have been made by him to recover the debt.
(2) Where the person referred to in subsection (1)—
(a) has not received any payment in respect of the taxable supply, the person may make a claim for the whole of the tax paid; or
(b) has received part of the payment in respect of the taxable supply, the person may make a claim for an amount calculated in accordance with the following formula:
A1 x C B
where A1 is the payment not received in respect of the taxable supply;
B is the consideration for the taxable supply; and
C is the tax due and payable on the taxable supply.
(3) Where a relief for bad debt has been made by the Director General to a person and any payment in respect of the taxable supply for which the tax is due and payable is subsequently received by the person, the person shall repay to the Director General an amount calculated in accordance with the following formula:
A2 x C B
where A2 is the payment received in respect of the taxable supply;
B is the consideration for the taxable supply; and
C is the tax due and payable on the taxable supply.
Relief for second-hand goods
(1) Any taxable person may secure a reduction of any tax chargeable on any supply of prescribed goods in cases where on the previous supply of such goods—
(a) no tax was chargeable; or
(b) tax was chargeable in accordance with this section.
(2) The tax chargeable on the supply of goods referred to in subsection (1) shall be reduced to the tax charged as if the supply of prescribed goods was for a consideration equal to the excess of X - Y,
where X is the consideration for which the goods are supplied; and
Y is the consideration for which the goods were acquired,
and where there is no excess, tax shall not be charged.
(3) This section shall extend to cases where the previous importation or sale of prescribed goods was taxable under the Sales Tax Act 1972.
(4) For the purposes of this section, references to a supply of prescribed goods where no tax was chargeable include references to the matters under paragraph 4 of the Second Schedule.
Recovery of tax, etc., erroneously refunded
Where any tax, surcharge, penalty, fee or any other money after having been paid has been erroneously refunded to any person, the person shall pay the refund erroneously paid to him upon a demand made by the Director General within six years from the date on which the refund was made.
Tourist Refund Scheme
(1) There shall be a scheme to be known as “Tourist Refund Scheme” which allows any tourist who qualifies to claim a refund on the tax paid on certain goods purchased in Malaysia from an approved outlet.
(2) The Minister may appoint any person to be an approved refund agent subject to the prescribed conditions as he deems fit to impose.
(3) The operation of the Tourist Refund Scheme shall be as prescribed by the Minister.
Remission of tax, etc.
(1) The Minister may remit the whole or any part of the tax due and payable under this Act where he deems fit.
(2) The Director General may remit the whole or any part of the penalty payable or surcharge accrued under this Act where it is just and equitable to do so.
(3) Where a person who has been granted remission under subsections (1) and (2) has paid any of the tax, surcharge or penalty to which the remission relates, he shall be entitled to a refund of the amount of tax, penalty or surcharge which had been remitted.
Remission of tax on goods lost, etc., under customs control
(1) Where any imported goods are—
(a) by an unavoidable accident, lost, damaged or destroyed; or
(b) lost through theft or evaporation,
at any time after the arrival of the imported goods in Malaysia but before removal from customs control, the Director General may remit the whole or any part of any tax due and payable on the imported goods.
(2) After removal of any goods from customs control, no abatement of any tax charged on the importation of the goods shall be allowed—
(a) on account of loss or damage; or
(b) on account of any claim that the weight, measure, volume or value as determined by the Director General for the purposes of ascertaining the tax on the goods, or any other factor affecting the goods, is incorrect, unless notice in writing of the claim has been given to the Director General by any claimant at or before the time of the removal.
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).
