1. At a hearing held in Kuala Lumpur on 14 February 2000, the Special Commissioners of Income Tax heard the appeal by Syabas Permai Sdn. Bhd. (hereinafter referred to as "the Appellant") against a Notice of Assessment dated 8 August 1998 showing RM596,000.00 being tax payable for the Year of Assessment 1997 issued by the Director General of Inland Revenue (hereinafter referred to as "the Respondent") under the Real Property Gains Tax Act, 1976 (hereinafter referred to as "the Act").

2. The issues for our determination were -

(i) Whether the provisions of paragraph 34A(3) Schedule 2 of the Act which were in force at the time of acquisition of the shares in question are applicable for purposes of computation of the acquisition price in respect of the 80,000 ordinary shares and the 1,920,000 bonus shares in Syarikat Awal Eksklusif Sdn. Bhd. which were acquired by the Appellant on 29.12.1994 and 16.1.1997 respectively.

(ii) What is the nature of bonus shares in law? Further, does the nature of the bonus shares have any legal bearing while computing the acquisition price pursuant to paragraph 34A Schedule 2 of the Act.

However, the Appellant decided not to proceed with issue No. 2(ii) a