JUDGMENT

Amarjeet Singh Serjit Singh J:

Introduction

[1] This is an appeal by the Director General of Inland Revenue ("DGIR") against the decision of the Special Commissioners of Income Tax ("SCIT") dated 8 July 2020 in respect of notices of assessment for the years of assessment ("YA") 2009, 2010, and 2011 and 2012 dated 8 February 2017 raised against the respondent, CIMB Group Holdings Berhad. An appeal lies against the deciding order on questions of law arising from proceedings before the SCIT. In the instant appeal, the questions of law raised by the DGIR were framed as follows:

(a) whether the assessments for the YAs 2009, 2010, and 2011 are time-barred;

(b) whether the redeemable preference shares ("RPS") in CIMB Bank Berhad and SBB Berhad owned by the respondent fall within the definition of "ordinary shareholding" under s 40 of the Finance Act 2007 (" FA 2007");

(c) if the answer to (b) is yes, whether tax deducted from franked dividends paid by CIMB Bank Berhad and SBB Berhad to the respondent in respect of the RPS qualifies for set-off under s 110 of the Income Tax Act 1967 (" ITA ") read together with s 51 of the FA 2007;

(d) whether the interest expenses incurred in acqu