IRBM
The Inland Revenue Board of Malaysia (IRBM) is one of the main revenue collecting agencies of the Ministry of Finance. The Department of Inland Revenue Malaysia became a board on March 1, 1996, and is now formally known as IRBM. IRBM was established in accordance with the Inland Revenue Board of Malaysia Act 1995 to give it more autonomy especially in financial and personnel management as well as to improve the quality and effectiveness of tax administration.
The agency is responsible for the overall administration of direct taxes under the following Acts :
@Income Tax Act 1967,
@Petroleum (Income Tax) Act 1967,
@Real Property Gains Tax Act 1976,
@Promotion of Investments Act 1986,
@Stamp Act 1949,
@Labuan Offshore Business Activity Tax Act 1990
Functions of the Board
To act as agent of the Government and to provide services in administering, assessing, collecting and enforcing payment of income tax, petroleum income tax, real property gains tax, estate duty, stamp duties and such other taxes as may be agreed between the Government and the Board;
@To advise the Government on matters relating to taxation and to liaise with the appropriate Ministries and statutory bodies on such matters;
@To participate in or outside Malaysia in respect of matters relating to taxation;
@To perform such other functions as are conferred on the Board by any other written law;
@May act as a collection agent for and on behalf of any body for the recovery of loans due for repayment to that body under any written law.
***(Sources from hasil.gov.my)
Fraudulent
*Made knowing that it was false.
*Without belief in its truth.
*Recklessly careless whether true or false.
*Dishonestly must be proved.
Negligent
*Injured party must prove defendant damde an actionable misrepresentation.
*The misrepresentation will be negligent unless the defendant can prove:
@He did believe misrepresentation was true.
@With reasonable grounds for such believe.
*Misrepresentation Act 1967 s.2(1)
Wholly Innocent
*Injured party must prove defendant made an actionable misrepresentation.
*The misrepresentation will be wholly innocent if the defendant can prove:
@He did believe misrepresentation was true
@With reasonable grounds for such a belief.
*Misrepresentation Act 1967 s.2(1)
*Made knowing that it was false.
*Without belief in its truth.
*Recklessly careless whether true or false.
*Dishonestly must be proved.
Negligent
*Injured party must prove defendant damde an actionable misrepresentation.
*The misrepresentation will be negligent unless the defendant can prove:
@He did believe misrepresentation was true.
@With reasonable grounds for such believe.
*Misrepresentation Act 1967 s.2(1)
Wholly Innocent
*Injured party must prove defendant made an actionable misrepresentation.
*The misrepresentation will be wholly innocent if the defendant can prove:
@He did believe misrepresentation was true
@With reasonable grounds for such a belief.
*Misrepresentation Act 1967 s.2(1)
What is Income tax?
Income tax is tax imposed on an individual/company based on their annual income. The amount or percentage of tax is calculated using the government's graduated scale, which depends on earned and unearned income of an individual.
The Inland Revenue Board levies income tax in Malaysia . This Board, which functions under the Ministry of Finance is one of the main revenue collecting agencies . It is responsible for overall administration, including assessment and collection of direct taxes, as per the Income tax Act 1967.
Sources of Income Liable to Tax
Sources of income which are liable to income tax are as follows:
@Gains and profits from trade, profession and business
@Salaries, remunerations, gains and profits from an employment
@Dividends, interests or discounts
@Rents, royalties or premiums
@Pensions, annuities or other periodic payments/li>
@Other gains or profits of an income nature not mentioned above.
Resident Individual
A resident individual is taxed on his chargeable income at graduated rates from 2% to 30% after the deduction of tax reliefs. However, an individual with chargeable income of less than RM2,500 is taxed at zero rate.
Personal Reliefs
The chargeable income of an individual resident is arrived at by deducting from his total income the following personal reliefs:
(a) Personal = RM5,000
(b) Wife = RM3,000
(c) Medical expenses of parents up to a maximum of RM5,000.
(d) Expenditure for purchase of basic support equipment for the individual, his wife, child or parent who is disabled the up to a maximum of RM5,000
(e) Unmarried children below the age of 18 = RM800 per child
The maximum relief for unmarried children (regardless of age) receiving full-time education in universities and institutions of higher education in Malaysia is four times the normal relief.
(f) Incapacitated children RM5,000 per child
(g) Contributions to the Employees Provident Fund and insurance or takaful premiums for life policies are allowed a maximum total tax relief of RM5,000. A further tax relief of RM2,000 is given for insurance or takaful premiums with respect to medical and educational purposes.
***(Source adopted from lawyerment.com.my)
Income tax is tax imposed on an individual/company based on their annual income. The amount or percentage of tax is calculated using the government's graduated scale, which depends on earned and unearned income of an individual.
The Inland Revenue Board levies income tax in Malaysia . This Board, which functions under the Ministry of Finance is one of the main revenue collecting agencies . It is responsible for overall administration, including assessment and collection of direct taxes, as per the Income tax Act 1967.
Sources of Income Liable to Tax
Sources of income which are liable to income tax are as follows:
@Gains and profits from trade, profession and business
@Salaries, remunerations, gains and profits from an employment
@Dividends, interests or discounts
@Rents, royalties or premiums
@Pensions, annuities or other periodic payments/li>
@Other gains or profits of an income nature not mentioned above.
Resident Individual
A resident individual is taxed on his chargeable income at graduated rates from 2% to 30% after the deduction of tax reliefs. However, an individual with chargeable income of less than RM2,500 is taxed at zero rate.
Personal Reliefs
The chargeable income of an individual resident is arrived at by deducting from his total income the following personal reliefs:
(a) Personal = RM5,000
(b) Wife = RM3,000
(c) Medical expenses of parents up to a maximum of RM5,000.
(d) Expenditure for purchase of basic support equipment for the individual, his wife, child or parent who is disabled the up to a maximum of RM5,000
(e) Unmarried children below the age of 18 = RM800 per child
The maximum relief for unmarried children (regardless of age) receiving full-time education in universities and institutions of higher education in Malaysia is four times the normal relief.
(f) Incapacitated children RM5,000 per child
(g) Contributions to the Employees Provident Fund and insurance or takaful premiums for life policies are allowed a maximum total tax relief of RM5,000. A further tax relief of RM2,000 is given for insurance or takaful premiums with respect to medical and educational purposes.
***(Source adopted from lawyerment.com.my)
The Latin term "uberrimae fidei" is also known as doctrine of utmost good faith is the principle that both parties entering into a contract are acting honestly towards one another and does not mislead or withhold critical information from one another. In a lending transaction, for example, the applicant must honestly disclose all financial and employment information. The lender must also act in good faith, by providing the applicant with a full list of terms and conditions.
This term is especially essential when one is involved in the insurance buying policy or applying for a loan from banks. Thats is why every time when one is involved in a contract, they have to sign their names at the bottom clarifying the truth and validity of the information provided by them during the contract. Any mislead or fake information provided in the contract will result in legal action. For example, mislead information in the Insurance policy will make the company has the right not to compensate the client.
Besides that, see also the case of Goh Chooi Leng v. Public Life Co. Ltd (1964) and case of New India Assurance v. Pang Piang Chong (1971).
This term is especially essential when one is involved in the insurance buying policy or applying for a loan from banks. Thats is why every time when one is involved in a contract, they have to sign their names at the bottom clarifying the truth and validity of the information provided by them during the contract. Any mislead or fake information provided in the contract will result in legal action. For example, mislead information in the Insurance policy will make the company has the right not to compensate the client.
Besides that, see also the case of Goh Chooi Leng v. Public Life Co. Ltd (1964) and case of New India Assurance v. Pang Piang Chong (1971).
"Caveat emptor (kah-vee-ott emptor) Latin for "let the buyer beware." This term eventually states that the the buyer buys at his/her own risk and therefore should examine and test a product himself/herself for obvious defects and imperfections.
The introduction of warranties and consumer protections have come upon the legal landscape in line with this term. This has resulted the seller held to a higher standard of disclosure than "buyer beware" and has responsibility for defects which could not be noted by casual inspection (particularly since modern devices cannot be tested except by use, and so many products are pre-packaged).
The concern of this term has made the online buying system a doubt. Since the risk of the product not working is forwarded to the buyer. In online purchasing, buyer could not inspect the goods and are given only a limited warranty. Usually the prices of online goods are cheaper as it serves as a compensation of risk undertaken by the buyer. In most developed online purchasing sites such as E-bay and Amazon this term is widely seen.
The introduction of warranties and consumer protections have come upon the legal landscape in line with this term. This has resulted the seller held to a higher standard of disclosure than "buyer beware" and has responsibility for defects which could not be noted by casual inspection (particularly since modern devices cannot be tested except by use, and so many products are pre-packaged).
The concern of this term has made the online buying system a doubt. Since the risk of the product not working is forwarded to the buyer. In online purchasing, buyer could not inspect the goods and are given only a limited warranty. Usually the prices of online goods are cheaper as it serves as a compensation of risk undertaken by the buyer. In most developed online purchasing sites such as E-bay and Amazon this term is widely seen.
"PUTRAJAYA: The Government wants to study the minimum wage mechanism so that workers are better paid in line with efforts to transit to a high-income economy. Human Resources Minister Datuk Dr S. Subramaniam said his ministry was looking at various ways practised worldwide to determine one that suits the country best." (source from Thestar Friday January 15, 2010)
In another article by NST, Dr Subramaniam revealed that there were workers still earning less than RM750 per month. He said an analysis by the Industrial Relations Department on 308 samples of collective agreements between employers and workers in 2007 found that the average minimum wage for clerical workers was RM485, technicians (RM690), and general workers (RM477) per month. He added that a study by the Malaysian Employers Federation found that unskilled workers, general workers and labourers in the electrical and electronic sectors received RM443 per month. In addition, Malaysia is ranked 59 on the Index of Economic Freedom. Generally the low wages in Malaysia does not attract locals to work in the nation which leads to a high intake of foreign workers.
The announcement of Dr Subramaniam on the increase of wages for security guards to 1100 to 1450 which over writes the Wages Council Act has given a great impact for the industry. By implementing the national minimum wage policy this will protect the employees, agency workers and also home workers. It is believed that with this, rate of unemployment of locals will be decreased. However, there are still a lot of questions on the effect of this policy on employers...
In another article by NST, Dr Subramaniam revealed that there were workers still earning less than RM750 per month. He said an analysis by the Industrial Relations Department on 308 samples of collective agreements between employers and workers in 2007 found that the average minimum wage for clerical workers was RM485, technicians (RM690), and general workers (RM477) per month. He added that a study by the Malaysian Employers Federation found that unskilled workers, general workers and labourers in the electrical and electronic sectors received RM443 per month. In addition, Malaysia is ranked 59 on the Index of Economic Freedom. Generally the low wages in Malaysia does not attract locals to work in the nation which leads to a high intake of foreign workers.
The announcement of Dr Subramaniam on the increase of wages for security guards to 1100 to 1450 which over writes the Wages Council Act has given a great impact for the industry. By implementing the national minimum wage policy this will protect the employees, agency workers and also home workers. It is believed that with this, rate of unemployment of locals will be decreased. However, there are still a lot of questions on the effect of this policy on employers...
A subsidiary corporation or company is one in which another, generally larger, corporation, known as the parent corporation, owns all or at least 50% of the shares. As the owner of the subsidiary, the parent corporation may control the activities of the subsidiary.
An example of a parent company will be IJM Corporation. Its subsidiaries company just to name a few are IJM plantation, Road Builder (M) Sdn Bhd , and IJM Properties Sdn Bhd.
Why the formation of Subsidiaries?
Subsidiaries can be formed in different ways and for various reasons. A corporation can form a subsidiary either by purchasing a controlling interest in an existing company or by creating the company itself. When a corporation acquires an existing company, forming a subsidiary can be preferable to a merger because the parent corporation can acquire a controlling interest with a smaller investment than a merger would require. In addition, the approval of the stockholders of the acquired firm is not required as it would be in the case of a merger.
When a company is purchased, the parent corporation may determine that the acquired company's name recognition in the market merits making it a subsidiary rather than merging it with the parent. A subsidiary may also produce goods or services that are completely different from those produced by the parent corporation. In that case it merging the operations are unpractical.
Corporations also create subsidiaries for the specific purpose of limiting their liability in connection with a risky new business. The parent and subsidiary remain separate legal entities, and the obligations of one are separate from those of the other. Nevertheless, if a subsidiary becomes financially insecure, the parent corporation is often sued by creditors. In some instances courts will hold the parent corporation liable, but generally the separation of corporate identities immunizes the parent corporation from financial responsibility for the subsidiary's liabilities.
Disadvantages of parent subsidiary:
One disadvantage of the parent-subsidiary relationship is the possibility of multiple taxation. Another is the duty of the parent corporation to promote the subsidiary's corporate interests, to act in its best interest, and to maintain a separate corporate identity. If the parent fails to meet these requirements, the courts will perceive the subsidiary as merely a business conduit for the parent, and the two corporations will be viewed as one entity for liability purposes.
An example of a parent company will be IJM Corporation. Its subsidiaries company just to name a few are IJM plantation, Road Builder (M) Sdn Bhd , and IJM Properties Sdn Bhd.
Why the formation of Subsidiaries?
Subsidiaries can be formed in different ways and for various reasons. A corporation can form a subsidiary either by purchasing a controlling interest in an existing company or by creating the company itself. When a corporation acquires an existing company, forming a subsidiary can be preferable to a merger because the parent corporation can acquire a controlling interest with a smaller investment than a merger would require. In addition, the approval of the stockholders of the acquired firm is not required as it would be in the case of a merger.
When a company is purchased, the parent corporation may determine that the acquired company's name recognition in the market merits making it a subsidiary rather than merging it with the parent. A subsidiary may also produce goods or services that are completely different from those produced by the parent corporation. In that case it merging the operations are unpractical.
Corporations also create subsidiaries for the specific purpose of limiting their liability in connection with a risky new business. The parent and subsidiary remain separate legal entities, and the obligations of one are separate from those of the other. Nevertheless, if a subsidiary becomes financially insecure, the parent corporation is often sued by creditors. In some instances courts will hold the parent corporation liable, but generally the separation of corporate identities immunizes the parent corporation from financial responsibility for the subsidiary's liabilities.
Disadvantages of parent subsidiary:
One disadvantage of the parent-subsidiary relationship is the possibility of multiple taxation. Another is the duty of the parent corporation to promote the subsidiary's corporate interests, to act in its best interest, and to maintain a separate corporate identity. If the parent fails to meet these requirements, the courts will perceive the subsidiary as merely a business conduit for the parent, and the two corporations will be viewed as one entity for liability purposes.
Subscribe to:
Posts (Atom)
