KETUA PENGARAH HASIL DALAM NEGERI vs INTERNATIONAL FOODS SDN BHD

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2000 MarsdenLR 1990

AZMEL MAAMOR
KETUA PENGARAH HASIL DALAM NEGERI – Appellant
Versus
INTERNATIONAL FOODS SDN BHD – Respondent

Advocates:
1) Y.M. Raja Kamarulzaman b. Raja Musa, Legal Officer, Lembaga Hasil Dalam Negeri, for the Appellant.
2) Dr. A. Subramaniam of Tetuan Shook Lin & Bok for the Respondent.

Table of Content
1. appeal filed against expenses claimed by respondent. (Para 1 , 2 , 3)
2. efficiency study and retrenchment benefit expenses claimed. (Para 4 , 5 , 8)
3. court's analysis of deductibility under taxation law. (Para 6 , 7)
4. finding that expenses served successor's benefit, not respondent. (Para 9 , 10 , 11 , 12)
5. court rejected the view that expenses were for the benefit of the liquidating entity. (Para 13 , 14 , 15 , 16 , 17 , 18)
6. ruling allowed the appeal with costs. (Para 19 , 20)

GROUNDS OF JUDGMENT

This is an appeal by Ketua Pengarah Hasil Dalam Negeri, the Appellant, against the Deciding Order of the Pesuruhjaya Khas Cukai Pendapatan dated 10th September 1998. There are 2 main issues being raised at the appeal before this Court, namely:-

[2]

1. Whether the sum of RM590,825.00 incurred and paid in 1985 to Alexander Proudfoot (M) Sdn. Bhd. by the Respondent to conduct an efficiency study to increase productivity and reduce costs in the Respondents business is an expense wholly and exclusively incurred in the production of gross income and deductable under section 33(1) of the Income Tax, 1967 (the Act); and

2. Whether the sum of RM393,369 00 incurred and paid i

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2000 MarsdenLR 1990

AZMEL MAAMORKETUA PENGARAH HASIL DALAM NEGERI – AppellantVersusINTERNATIONAL FOODS SDN BHD – Respondent

Cases Referred (1)

AZMEL MAAMOR
KETUA PENGARAH HASIL DALAM NEGERI – Appellant
Versus
INTERNATIONAL FOODS SDN BHD – Respondent