KETUA PENGARAH HASIL DALAM NEGERI MALAYSIA vs MITRALAND KOTA DAMANSARA SDN BHD

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 MarsdenLR 630

COURT OF APPEAL PUTRAJAYA
KETUA PENGARAH HASIL DALAM NEGERI MALAYSIA – Appellant
Versus
MITRALAND KOTA DAMANSARA SDN BHD – Respondent

Petitioner Advocates:Mohamad Asyraf Zakaria,Ahmad Isyak Mohd Hassan ,Respondent Advocate: Francis Tan Leh Kiah,Brandon Shen Shi Han,Vijey M Krishan,William Wong

Table of Content
1. introduction and procedural context of tax appeal. (Para 1 , 2 , 4)
2. findings regarding the nature of deduction claims by the taxpayer. (Para 5 , 10 , 11)
3. findings by the high court on deductibility of payments. (Para 16 , 17 , 22)
4. differentiation of deductible expenses versus penalties. (Para 35 , 41)
5. final orders regarding allowed deductions. (Para 44 , 48)

Vazeer Alam Mydin Meera JCA:

Introduction

[1] This is an appeal by the Director General of Inland Revenue ("DGIR") against the decision of the High Court delivered on 19 May 2021 on a Case Stated from the Special Commissioners of Income Tax ("SCIT") reversing the decision of the SCIT.

Background Facts

[2] The Respondent/Taxpayer is a property developer. The Appellant/DGIR conducted a field audit and found that the Respondent/Taxpayer had in its income Tax Returns for the Years of Assessment 2014 claimed a deduction on a payment of RM5,518,597.00 made to the Selangor State Authority ("State Authority") through the Lembaga Perumahan dan Hartanah Selangor ("LPHS") for the release of unsold residential and commercial development units reserved for bumiputeras ("Bumiputera Quota") to be sold to all buyers, incl

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2023 MarsdenLR 630

COURT OF APPEAL PUTRAJAYAKETUA PENGARAH HASIL DALAM NEGERI MALAYSIA – AppellantVersusMITRALAND KOTA DAMANSARA SDN BHD – Respondent

COURT OF APPEAL PUTRAJAYA
KETUA PENGARAH HASIL DALAM NEGERI MALAYSIA – Appellant
Versus
MITRALAND KOTA DAMANSARA SDN BHD – Respondent