KETUA PENGARAH HASIL DALAM NEGERI vs SANDAKAN EDIBLE OILS SDN BHD

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 MarsdenLR 820

HIGH COURT MALAYA KUALA LUMPUR
KETUA PENGARAH HASIL DALAM NEGERI – Appellant
Versus
SANDAKAN EDIBLE OILS SDN BHD – Respondent

Petitioner Advocates:Muhammad Farid Jaafar (Siti Salina Hassan with him) ,Respondent Advocate: Nitin Nadkarni (Chris Toh Pei Roo with him)

Table of Content
1. adjustment to taxpayer profits must be substantiated by compliance with established pricing guidelines. (Para 1 , 3 , 4 , 8)
2. taxpayer's right to appeal against unjust assessments must be preserved under tax law. (Para 2 , 18 , 20 , 22)
3. exchange of information and documentation is essential in tax audits. (Para 9 , 10 , 11)
4. revenue must show evidence of transfer pricing practices to justify profit adjustments. (Para 30 , 35 , 39)
5. penalties require evidence of intent to misreport or understate income. (Para 72 , 80 , 81)

Ahmad Kamal Md Shahid J

Introduction

[1] This is an appeal (Enclosure 1) by the Appellant, the Director General of Inland Revenue (Revenue) against the decision of the Special Commissioners of Income Tax (SCIT) delivered on 4 February 2021 setting aside the notice of additional assessment (Form JA) dated 1 August 2017 for the year of assessment (YA) 2010 against the Respondent (Taxpayer) pursuant to an adjustment made by the Revenue under s 140A of the Income Tax Act 1967 ( ITA ) which deals specifically with transfer pricing.

[2] The particulars of tax in the Notice of Additional Assessment dated 1 August 2017 for YA 2010 are as follows:

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2023 MarsdenLR 820

HIGH COURT MALAYA KUALA LUMPURKETUA PENGARAH HASIL DALAM NEGERI – AppellantVersusSANDAKAN EDIBLE OILS SDN BHD – Respondent

Cases Referred (2)

HIGH COURT MALAYA KUALA LUMPUR
KETUA PENGARAH HASIL DALAM NEGERI – Appellant
Versus
SANDAKAN EDIBLE OILS SDN BHD – Respondent