See Mee Chun JCA (Majority):

Introduction

[1] There are two appeals being heard together. Appeal 726 is the appeal of Etiqa Family Takaful Berhad (Taxpayer) against the decision of the High Court (HC) dismissing its appeal for Year of Assessment (YA) 2011, 2012 and 2013. Appeal 746 is the appeal by the Director General of Inland Revenue (Revenue) against the decision of the HC in allowing the Taxpayer's appeal for YAs 2008, 2009 and 2010.

[2] The Taxpayer is in the principal business of managing the general and family takaful business. From 1 December 2007, the Taxpayer also commenced managing Takaful investment-linked business upon the transfer of the Takaful assets, liabilities and business of Mayban Takaful Berhad to it.

Background Facts

[3] The Revenue raised notices of additional assessment (Form JA) for YAs 2008 to 2013 with additional tax payable and penalties as set out below:

The Taxpayer being aggrieved by the Revenue's decision filed notices of appeal (Form Q) for the YAs in question.

[4] On 19 February 2021, the Special Commissioners of Income Tax (SCIT) disallowed the Taxpayer's appeal. An appeal to the HC ensued. On 14 September 2022, the HC allowed in part the Tax