[1] The respondents filed a judicial review application under O 53 of the Rules of the High 1980 on 23 May 2008, inter alia, for an order of certiorari to quash the appellant's decision allegedly made in a letter of 14 April 2008 addressed to the respondents' tax agent, a declaration that the appellant's decision in that letter was erroneous in law, and also prayed for a refund of the withholding tax already paid.

[2] The application for judicial review was allowed by the High Court and affirmed by the Court of Appeal. The appellant on 9 August 2015 successfully obtained leave from this Court to determine two questions.

Facts Of The Case

[3] The 1st respondent is a Malaysian company whilst the 2nd respondent is a non-resident.

[4] A Service Agreement dated 1 January 2003 ("the Service Agreement") was executed between the 1st respondent and the 2nd respondent, whereupon the 2nd respondent was to provide services to the 1st respondent from overseas relating to the provision of a global network for voice, data, and video communication (the services). The rates to be paid were fixed.

[5] The appellant, in the course of conducting a withholding tax audit over the 1st respondent's business,