1 PART I PRELIMINARY-1. Short title and commencement.

(1) This Act may be cited as the Labuan Business Activity Tax Act 1990 and shall come into force on such date as the Minister may, by notification in the Gazette , appoint.

[Am. Act A1366]

(2) This Act shall have effect for the year of assessment 1991 and subsequent years of assessment.

Note:

Section 3(2) of Act A1366 states:

(2) Where, on and after the date of the coming into operation of this Act, a reference is made in any written law to the Labuan Offshore Business Activity Tax Act 1990, such reference shall be construed as a reference to the Labuan Business Activity Tax Act 1990.

2 PART I PRELIMINARY-2. Interpretation.

(1) In this Act, unless the context otherwise requires:

  "basis period"  , in relation to a year of assessment, means the accounting period or periods ending in the calendar year immediately preceding that year of assessment;

  "Director General"  means the Director General of Inland Revenue referred to in section 134 of the Income Tax Act 1967 [Act 53] ;

  "domestic company"  has the meaning as in the Labuan Companies Act 1990 [Act 441] ;

["domestic company" Ins. Act 544:s.27; Am. Act A1366:s.4]

  "electronic invoice"  has the meaning assigned to it in the Income Tax Act 1967;

["electronic invoice" Ins. by Act 851]

  "Labuan"  means t

2A PART I PRELIMINARY-2A. Designated Labuan business activity.

(1) The Minister may, on the recommendation of the Director General, in writing, designate any activity carried on by any Labuan entity to be a Labuan business activity.

(2) (Deleted by Act 812:s.73)

[Ins. Act A1366]

2B PART I PRELIMINARY-2B. Labuan entity.

(1) The Labuan entities:

(a) shall be as specified in the Schedule; and

(b) shall, for the purposes of the Labuan business activity:

(i) in relation to a Labuan trading activity:

(A) have an adequate number of full time employees in Labuan; and

(B) have an adequate amount of annual operating expenditure in Labuan,

as prescribed by the Minister by regulations made under this Act; and

(ii) in relation to a Labuan non-trading activity:

(A) have an adequate number of full time employees in Labuan;

(B) have an adequate amount of annual operating expenditure in Labuan; and

(C) comply with any condition in relation to control and management in Labuan,

as prescribed by the Minister by regulations made under this Act.

[(1) Su

3 PART II CHARGEABILITY TO TAX Scope of Charge-3. Labuan business activity chargeable to tax.

(1) Subject to this Act, a Labuan entity carrying on a Labuan business activity shall be charged to tax in accordance with this Act for each year of assessment in respect of that Labuan business activity.

[Am. by Act 851; Act A1366]

(2) Notwithstanding any other provisions of this Act and for the purposes of the imposition of Domestic Top-up Tax or Multinational Top-up Tax and the implementation of the GloBE Rules, Part XI of the Income Tax Act 1967 shall also apply to a Labuan entity which is a Constituent Entity that is a member of a Multinational Enterprise Group that has annual revenue of seven hundred and fifty million euro or more in the Consolidated Financial Statements of the Ultimate Parent Entity in at least two of the four consecutive Financial Years immediately preceding the tested Financial Year.

[Ins. by Act 851]

(3) Where one or more of the Financial Years of t

3A PART II CHARGEABILITY TO TAX Scope of Charge-3A. Labuan business activity chargeable to Income Tax Act 1967 upon election.

[Ins. Act 683; Am. Act A1366]

(1) Notwithstanding any other provision of this Act, a Labuan entity carrying on a Labuan business activity may make an irrevocable election in the prescribed form that any profit of the Labuan entity for any basis period for a year of assessment and subsequent basis period to be charged to tax in accordance with the Income Tax Act 1967 in respect of that Labuan business activity.

[Am. Act A1366]

(2) The election referred to in subsection (1) shall be made and furnished to the Director General within three months or any extended period as may be allowed by the Director General after the beginning of the basis period for a year of assessment:

[(2) Am. Act 693:s.72; Am. Act 831:s.57]

Provided that for the basis period ending on a day in the year of assessment 2008, the election under this section may be made and furni

3B PART II CHARGEABILITY TO TAX Scope of Charge-3B. Residence.

For the purposes of the double taxation arrangements effected under section 132 of the Income Tax Act 1967:

(a) a Labuan entity carrying on a business or businesses is resident in Malaysia for the basis period for a year of assessment if at any time during that basis period the management and control of its business or of any one of its businesses, as the case may be, are exercised in Malaysia; and

(b) any other Labuan entity is resident in Malaysia for the basis period for a year of assessment if at any time during that basis period the management and control of its affairs are exercised in Malaysia by its directors, partners, trustees or other controlling authority.".

4 Tax Based on Return-4. Labuan trading activity.

[Shoulder note Am. Act A1366:s.8]

(1) Tax shall be charged at the rate of three per cent for a year of assessment upon the chargeable profits of a Labuan entity carrying on a Labuan business activity which is a Labuan trading activity for the basis period for that year of assessment.

[(1) Am. Act A1366:s.8]

(2) Subject to this Act, the chargeable profits of a Labuan entity carrying on a Labuan business activity which is a Labuan trading activity for a year of assessment shall be the net profits as reflected in the audited accounts in respect of such Labuan trading activity of a Labuan entity for the basis period for that year of assessment.

[(2) Am. Act A1366:s.8; Am. Act A1614:s.5]

(3) For the avoidance of doubt, the net profits referred to in subsection (2) shall not include any income derived from royalty and other income derived from an inte

5 Tax Based on Return-5. Filing of statutory declaration and return of profits.

A Labuan entity carrying on a Labuan business activity which is a Labuan trading activity shall, within a period of three months (or any extended period as may be allowed by the Director-General) from the commencement of a year of assessment, file a statutory declaration and a return of its profits for that year of assessment in the prescribed forms to the Director-General.

[Am. Act A1366]

6 Tax Based on Return-6. Assessment and additional assessment.

[Shoulder note Am. Act A1614:s.6]

(1) Upon receipt of a return of its profits referred to in section 5 for a year of assessment, the Director General shall make an assessment in accordance with section 6A for that year of assessment and shall serve a notice of assessment on the Labuan entity concerned in accordance with section 6B.

[Am. Act A1366:s.10; Am. Act A1614:s.6]

(2) The Director General, where for any year of assessment it appears to him that no or no sufficient assessment has been made on a person chargeable to tax, may in that year or within five years after its expiration make an assessment or additional assessment, as the case may be, in respect of that person in the amount or additional amount of chargeable profit and tax or in the additional amount of tax, in which according to the best of the Director General's judgment, the assessment with respect to that person ough

6A Tax Based on Return-6A. Form and making of assessments.

(1) An assessment made under section 6 shall:

(a) be made in the appropriate prescribed form;

(b) indicate, in addition to any other material included therein, the appropriate year of assessment and the amount or additional amount of chargeable profits and the tax charged thereon or the amount of tax or additional tax, as the case may be; and

(c) specify in the appropriate space in that form the date on which that form was duly completed.

(2) Where the form under subsection (1) appears to have been duly completed, the assessment shall, until the contrary is proved, be presumed to have been made on the date so specified.

6B Tax Based on Return-6B. Notice of assessment.

(1) As soon as may be after an assessment has been made under section 6, the Director General shall cause a notice of assessment to be served, personally or by post on the chargeable Labuan entity in respect of whom the assessment was made.

(2) Where the tax charged under an assessment is increased on appeal to the Special Commissioners or a court, then, as soon as may be after the appeal has been decided there shall be served, personally or by post on the chargeable Labuan entity in respect of whom the assessment was made a notice of increased assessment.

(3) A notice served under subsection (1) or (2) shall indicate, in addition to any other material included therein:

(a) in the case of a notice served under subsection (1), the year of assessment and the amount or additional amount of the chargeable profits and the tax charged;

(b) in the case of a notice served under subsection (2), the

6C Tax Based on Return-6C. Finality of assessment.

(1) The assessment made, agreed to or determined, shall be final and conclusive for the purposes of this Act, where:

(a) no valid notice of appeal against an assessment has been given under section 99 of the Income Tax Act 1967 within the time specified by that section or any extension of time granted;

(b) an agreement has been come to with respect to an assessment pursuant to subsection 101(2) of the Income Tax Act 1967; or

(c) an assessment has been determined on appeal and there is no right of further appeal.

(2) Nothing in subsection (1) shall prejudice the exercise of any power conferred on the Director General by section 6.

6D Tax Based on Return-6D. Right of appeal.

(1) A person aggrieved by an assessment or additional assessment made on him may appeal to the Special Commissioners against the assessment or additional assessment in the same manner as an appeal against an assessment of income tax made under the Income Tax Act 1967, and sections 99, 100, 101 and 102 of the Income Tax Act 1967, as far as they are applicable and with the necessary modifications, shall apply to an appeal against an assessment or additional assessment made under this Act as if:

[(1) Am. Act 831:s.58]

(a) every reference in those sections to income tax or to tax were a reference to Labuan business activity tax; and

(b) every reference in those sections to income were a reference to chargeable profits.

(2) Schedule 5 to the Income Tax Act 1967 shall apply with necessary modifications in relation to the procedures of hearing of appeals to the

7 Tax Charged upon Election-7. [Deleted]

(Deleted by Act 812:s.76)

8 Tax Charged upon Election-8. Absence of basis period.

Where a Labuan entity carrying on a Labuan business activity does not have a basis period for a year of assessment, the Director General may direct that the basis period for that year of assessment and subsequent years of assessment to include a period or periods (which may be of any period) as specified in the direction.

[8. Subs. Act 812:s.77; Am. Act 833:s.54]

8A Tax Charged upon Election-8A. Tax rebate.

(1) A rebate shall be granted to a Labuan entity upon tax charged under section 4 for each year of assessment for any zakat which is paid in the basis period for that year of assessment to, and evidenced by a receipt issued by, a Labuan Islamic religious authority.

[(1) Am. Act A1366:s.13; Am. Act 812:s.78]

(2) Where the total amount of the rebate under subsection (1) exceeds the tax charged (before any such rebate) for any year of assessment, the excess shall not be paid to the Labuan entity or available as a credit to set off his tax liability for that year of assessment or any subsequent year.

[8A. Ins. Act 631:s.25; (2) Am. Act A1366:s.13]

9 PART III NON-CHARGEABILITY TO TAX-9. Labuan non-trading activity.

[Shoulder note Am. Act A1366:s.14]

(1) Notwithstanding section 3(1), the profit of a Labuan entity carrying on a Labuan business activity which is a Labuan non-trading activity for the basis period for a year of assessment shall not be charged to tax under this Act for that year of assessment.

[Am. by Act 851; Act A1366:s.14; Act A1614:s.8]

(2) For the avoidance of doubt, the profit of a Labuan entity carrying on a Labuan business activity which is a Labuan non-trading activity referred to in subsection (1) shall not include any income derived from royalty and other income derived from an intellectual property right if it is receivable as consideration for the commercial exploitation of that right.

[(2) Ins. Act A1614:s.8]

(3) Any income derived from intellectual property right referred to in subsection (2) is subject to tax under the Income Tax

10 PART III NON-CHARGEABILITY TO TAX-10. Statutory declaration and return of profits of Labuan non-trading activity.

[Shoulder note Am. Act A1366:s.15; Am. Act 833:s.55]

A Labuan entity carrying on a Labuan business activity which is a Labuan non-trading activity shall, within a period of three months (or any extended period as may be allowed by the Director General) from the commencement of a year of assessment, file a statutory declaration and a return of profits of the Labuan entity in the prescribed form with the Director General.

[Am. Act A1366:s.14; Am. Act 833:s.55]

10A PART III NON-CHARGEABILITY TO TAX-10A. [Deleted]

(Deleted by Act 631:s.18)

11 PART IV PAYMENT AND RECOVERY OF TAX-11. Payment of tax.

A Labuan entity shall, at the time of filing of the statutory declaration and return of its profits for a year of assessment under section 5 or 10, make full payment on account of:

(a) tax, if any, to be charged for that year of assessment; or

[(a) Am. Act 833:s.56]

(b) tax, if any, to be charged for that year of assessment after reduction of rebate under section 8A.

[11. Subs. Act 631:s.26; Subs. Act 812:s.79; (b) Am. Act 833:s.56]

12 PART IV PAYMENT AND RECOVERY OF TAX-12. Payment of difference and refund.

Where there is a difference between the amount paid under section 11 and the amount assessed by the Director General under section 6, the Labuan entity shall pay the difference or the Director- General shall refund the excess, as the case may be.

[Am. Act A1366:s.17;Am. Act 812:s.80]

12A PART IV PAYMENT AND RECOVERY OF TAX-12A. Fund for Tax Refund.

(1) There shall be paid from time to time into the Fund for Tax Refund established under section 111B of the Income Tax Act 1967 such amount of tax collected under this Act as may be authorized by the Minister.

(2) The money of the Fund referred to in subsection (1) shall be applied for the making of a refund under section 12.

(3) Section 14A of the Financial Procedure Act 1957 [Act 61] shall not apply to any refund made under section 12.

[12A. Ins. Act 702:s.59]

13 PART IV PAYMENT AND RECOVERY OF TAX-13. Notice of demand.

(1) Where a Labuan entity fails to comply with section 11 or 12, the Director-General shall issue a notice of demand to be served personally or by post on the Labuan entity.

(2) The Director-General shall, in issuing the notice of demand, increase the tax or balance of tax unpaid by ten per cent and such amount shall be recoverable as tax due.

(3) The tax payable under the notice of demand shall be paid upon service of the notice of demand.

13A PART IV PAYMENT AND RECOVERY OF TAX-13A. Tax due and payable.

(1) Where an assessment is made under subsections 6(2), (3) and (4), the tax payable under the assessment shall, on the service of the notice of assessment under section 6B, be due and payable on the person assessed at the place specified in that notice whether or not that person appeals against the assessment.

[(1) Am. Act 831:s.59]

(2) Where any tax due and payable under subsection (1) has not been paid within thirty days after the service of the notice, so much of the tax as is unpaid upon the expiration of that period shall without any further notice being served be increased by a sum equal to ten per cent of the tax so unpaid, and that sum shall be recoverable as if it were tax due and payable under this Act.

[13A. Ins. Act A1614:s.9]

13B PART IV PAYMENT AND RECOVERY OF TAX-13B. Tax payable notwithstanding proceedings instituted under any other written law.

The institution of any proceedings under any other written law against the Government or the Director General shall not relieve any person from the liability to pay any tax, debt or other sum under this Part.

[13B. Ins. Act 831:s.60]

14 PART IV PAYMENT AND RECOVERY OF TAX-14. Recovery by suit.

(1) Tax due and payable may be recovered by the Government by civil proceedings as a debt due to the Government.

(2) The Director-General and all authorized officers shall be deemed to be public officers authorized by the Minister under subsection (1) of section 25 of the Government Proceedings Act 1956, in respect of all proceedings under this section.

(3) An   "authorized officer"  means an official authorized by the Director-General for the purposes of this section.

[Am. Act A1366]

15 PART V RESPONSIBILITY FOR COMPLIANCE-15. Person chargeable.

A Labuan entity shall be the person assessable and chargeable to tax imposed by this Act.

[Am. Act A1366]

16 PART V RESPONSIBILITY FOR COMPLIANCE-16. Officers responsible for compliance.

Responsibility for doing all acts and matters required to be done by or on behalf of a Labuan entity for the purposes of this Act shall lie jointly and severally with::

(a) the manager or other principal officer in Malaysia;

(b) the resident director as provided in the Labuan Companies Act 1990;

(c) the secretary;

(d) in the case of a trust, the trustee or trustees;

(e) any person (however styled) performing the functions of any of the persons mentioned in the foregoing paragraphs;

[Am. Act 624; Am. Act A1366]

(f) in the case of a company under liquidation or receivership, the liquidator or receiver, as the case may be;

[Am. Act 624; Am. Act A1366]

(g) in the case of a partnership, the partner or partners.

[Ins. Act 624]

16A PART V RESPONSIBILITY FOR COMPLIANCE-16A. Director's liability.

(1) Notwithstanding anything contrary to this Act or any other written law, where any tax is due and payable under this Act by a company, any person who is a resident director of that company during the period in which that tax is liable to be paid by that company, shall be jointly and severally liable for such tax that is due and payable and shall be recoverable under section 14 from that person.

(2) In this section, "director" means any person who:

(a) is occupying the position of director, by whatever name called, including any person who is concerned in the management of the company's business; and

(b) is, either on his own or with one or more associates, the owner of, or able directly or through the medium of other companies or by any other indirect means to control, not less than twenty per cent of the ordinary share capital of the company.

(3) For the purposes of paragr

17 PART VI SUPPLEMENTAL Administration-17. The Director-General.

The Director-General shall have the care and management of the tax.

17A PART VI SUPPLEMENTAL Administration-17A. Power of Director General to issue guidelines.

(1) The Director General may, generally in respect of this Act or in respect of any particular provision of this Act, issue guidelines as the Director General deems expedient or necessary to clarify the provisions of this Act or to facilitate compliance of the law or any other matter relating to this Act.

(2) The Director General may revoke, revise or amend the whole or any part of any guidelines issued under this section.

[Ins. Act A1366]

17B PART VI SUPPLEMENTAL Administration-17B. Advance ruling.

(1) Subject to this section or any regulations made under this Act, on the application made by any person, the Director General shall make an advance ruling on the application of any provision of this Act to the person and to the arrangement for which the ruling is sought.

(2) An application under subsection (1) shall be made in the form to be made available by the Director General and shall contain particulars as may be required by the Director General.

(3) The Director General may at any time withdraw any advance ruling made under subsection (1) by giving a notice in writing of such withdrawal to the person to whom the ruling applies.

(4) Notwithstanding any other provisions of this Act, where an advance ruling applies to any person in relation to an arrangement and the person applies the provision in the manner stated in the ruling, the Director General shall apply the provision in relation to the person and that arrangement

17C PART VI SUPPLEMENTAL Administration-17C. Power to disregard certain transactions.

(1) The Director General may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the transaction and make such adjustments as he thinks fit, including the computation or re-computation of the chargeable profit, or the imposition of liability to tax, or make such assessment or additional assessment in respect of any person as may be necessary in consequence of his exercise of the powers, with a view to counteracting the whole or any part of any such direct or indirect effect of the transaction, where he has reason to believe that any transaction has the direct or indirect effect of:

(a) altering the incidence of tax which is payable or suffered by or which would otherwise have been payable by any person or suffered by any person;

(b) relieving any person from any liability which has arisen or which would otherwise have arisen to pay tax or to m

17D PART VI SUPPLEMENTAL Administration-17D. Power to substitute the price on certain transactions.

(1) This section shall apply notwithstanding section 17C and subject to any regulations prescribed under this Act.

(2) Subject to subsection (3), where a person in the basis period for a year of assessment enters into a transaction with an associated person for that year for the acquisition or supply of property or services, then, for all purposes of this Act, that person shall determine and apply the arm's length price for such acquisition or supply.

(3) Where the Director General has reason to believe that any property or services referred to in subsection (2) is acquired or supplied at a price which is either less than or greater than the price which it might have been expected to fetch if the parties to the transaction had been independent persons dealing at arm's length, the Director General may in the determination of the chargeable profit of the person, substitute the price in respect of the transaction to reflect an arm's length

18 PART VI SUPPLEMENTAL Administration-18. Delegation of Director-General's functions.

(1) Any function of the Director-General under this Act may be performed by any officer appointed under section 134 of the Income Tax Act 1967.

[Am. Act 644]

(2) The Director-General may in writing delegate any of his functions under this Act to any other official.

19 PART VI SUPPLEMENTAL Administration-19. Power of Minister to give directions.

The Minister may give to the Director-General directions of a general character (not inconsistent with this Act) as to the performance of the functions of the Director-General under this Act; and the Director-General shall give effect to any direction so given.

20 PART VI SUPPLEMENTAL Administration-20. Return of profits, etc., to be treated as confidential.

(1) Any return of profits, statutory declaration or information made or received for the purposes of this Act shall be treated as confidential and shall not be communicated or disclosed to any person except for the purposes of this Act.

(2) Where any official, whether during his employment or thereafter, contravenes subsection (1), he shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than twenty thousand ringgit and not exceeding one million ringgit or to imprisonment for a term not exceeding two years or to both.

[(2) Am. Act A1366:s.22; Am. Act 831:s.61]

(3) Any person who receives any return of profits, statutory declaration or information made or received for the purposes of this Act, knowing or having reasonable ground to believe at the time when he receives it that such return, declaration or information is communicated or disclosed to him in contravention of thi

21 PART VI SUPPLEMENTAL Administration-21. Power of Minister to make regulations.

(1) The Minister may make regulations-

[Renumbering by Act A1532:s.2]

(a) generally for the purpose of carrying out, or giving effect to, the provisions of this Act;

(b) for the purpose of implementing or facilitating the operation of an arrangement having effect under section 132, 132A, 132B or 132C of the Income Tax Act 1967.

[(b) Am. Act A1532:s.2; Am. Act A1555:s.2; Am. Act A1577:s.2]

(2) The regulations made under this section may prescribe a penalty of a fine not exceeding one million ringgit or imprisonment for a term not exceeding two years or both for any contravention or failure to comply with any of the provisions of the regulations.

[21. Subs. Act 761:s.51; Subs. Act 785:s.39 (2); Ins. Act A1532:s.2]

21A PART VI SUPPLEMENTAL Administration-21A. Forms.

The Director General may, in such manner as seems to him to be appropriate, prescribe such forms as are required by this Act to be prescribed and such other forms as he considers ought to be prescribed in connection with the operation of this Act and authorize the use of a suitable substitute form for any form so prescribed.

21B PART VI SUPPLEMENTAL Administration-21B. Admissibility of electronic record.

(1) Notwithstanding any other written law, where in any proceedings under this Act an electronic record of any document is stored or received by or communicated to the Director General on an electronic medium or by way of electronic transmission, the electronic record or the copy or print-out of that electronic record shall be admissible as evidence of the facts stated or contained therein:

Provided that the record or the copy or print-out is-

(a) certified by the Director General to contain all or any information furnished, stored, communicated or received on an electronic medium or by way of electronic transmission under this section; or

(b) otherwise authenticated in the manner provided in the Evidence Act 1950 [Act 56] for authentication of documents produced by computer.

(2) Where the electronic record of any document, or a copy or print-out of that record is adm

22 Miscellaneous-22. Power to call for information.

(1) For the purpose of this Act, the Director General may by notice in writing require any person to furnish such information or particulars as may be required by him or for compliance with any double taxation arrangements, tax information exchange arrangements or mutual administrative assistance arrangement referred to in subsection 22A(2) entered into by the Government of Malaysia.

[(1) Subs. Act A1366; Am. Act 742:s.33; Am. Act 773:s.45]

(2) Where any person, without reasonable excuse, fails to comply with the notice mentioned in subsection (1), he shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit.

[(2) Am. Act A1366:s.23]

22A Miscellaneous-22A. Disclosure of information in certain circumstances.

(1) Section 20 shall not prevent:

(a) the disclosure of information in respect of double taxation arrangements, tax information exchange arrangements or mutual administrative assistance arrangement to a duly authorized servant or agent of the Government with whom such arrangements have been made where such information is required to be disclosed under such arrangements;

[(a) Am. by Act 851; Act 742:s.34; Am. Act 773:s.46]

(aa) the disclosure of information in relation to electronic invoice to the Director General of Customs and Excise (or to the public officers under his direction and control) or the use of information in relation to electronic invoice by the Director General of Customs and Excise, to such an extent as is necessary or expedient for the exercise of his function; and

[(aa) Ins. by Act 851]

(b) the disclosure of in

22B Miscellaneous-22B. Power to call for specific returns and production of books.

For the purpose of obtaining full information for ascertaining whether or not a person is chargeable to tax or for determining his liability, the Director General may by notice in writing require that or any other person:

(a) to complete and deliver to the Director General within a time specified in the notice, not being less than thirty days from the date of service of the notice, any return specified in the notice;

(b) to attend personally before the Director General and produce for examination all books, accounts, returns and other documents which the Director General deems necessary;

(c) to make a return in accordance with paragraph (a) and also to attend in accordance with paragraph (b) ; or

(d) to provide in writing such information or particulars which the Director General deems necessary.

22C Miscellaneous-22C. Power to call for statement of bank accounts, etc.

The Director General may by notice in writing require any person to furnish within a time specified in the notice, not being less than thirty days from the date of service of the notice, a statement containing particulars of:

(a) all banking accounts, being accounts which are in existence or have been in existence at any time during a period to be specified in the notice,:

(i) in his own name or in the name of a wife or dependent child of his or jointly in any such names;

(ii) in which he is or has been interested jointly or solely; or

(iii) on which he has or has had power to operate jointly or solely;

(b) all savings and loan accounts, deposits, building society accounts and co-operative society accounts in regard to which he has or has had any interest or power to operate jointly or solely during that period;

(c) all assets which he and

22D Miscellaneous-22D. Power to access buildings and documents, etc.

(1) For the purposes of this Act, the Director General shall at all times have full and free access to all lands, buildings and places and to all books, documents, objects, articles, materials and things and may search such lands, buildings and places and may inspect, copy or make extracts from any such books, documents, objects, articles, materials and things without making any payment by way of fee or reward.

(2) Where the Director General exercises his powers under subsection (1), the occupiers of such lands, buildings and places shall provide the Director General or an authorized officer with all reasonable facilities and assistance for the exercise of his powers under this section.

(3) The Director General may take possession of any books, documents, objects, articles, materials and things to which he has access under subsection (1) where in his opinion:

(a) the inspection of them, the copying of them

22DA Miscellaneous-22DA. Duty to issue electronic invoice.

(1) Subject to this section, a person shall, in a year of assessment issue an electronic invoice for each transaction in respect of any goods sold or services performed by the person in that year of assessment.

(2) For the purposes of subsection (1)-

(a) the persons who shall issue the electronic invoice and the particulars to be included in the electronic invoice are as prescribed by the Minister under section 82C of the Income Tax Act 1967; and

(b) the conditions and specifications under which an electronic invoice is to be issued shall be as determined by the Director General under the guidelines issued in accordance with section 17A of this Act.

(3) Any electronic invoice issued by a person in respect of goods sold or services performed under subsection (1) shall be transmitted electronically to and validated by the Director General.

(4) Where for any year of asses

22E Miscellaneous-22E. Duty to keep documents for ascertaining chargeable profit and tax payable.

(1) Every person who is required to furnish a return of his profits for a year of assessment under this Act shall keep and retain in safe custody sufficient documents for a period of seven years from the end of that year of assessment for the purposes of ascertaining his chargeable profit and tax payable.

(2) Where a person referred to in subsection (1) has not furnished a return as required under this Act for a year of assessment, that person shall keep and retain the documents referred to in subsection (1) that relate to that year of assessment for a period of seven years after the end of the year in which the return is furnished.

(3) The Director General may waive all or any of the requirements under subsection (1) in respect of any profit.

(4) Any person who is required by this section to keep documents and:

(a) does so electronically, shall retain the document in an electronically readable form

22EA Miscellaneous-22EA. Failure to issue electronic invoice.

Any person who, without reasonable excuse, contravenes subsection 22DA(1), (6) or (7), shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than two hundred ringgit and not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both.

[Ins. by Act 851]

22F Miscellaneous-22F. Prosecution.

No prosecution for an offence under this Act shall be instituted except by or with the written consent of the Public Prosecutor.".

23 Miscellaneous-23. Offences and penalty.

Any person who:

[Am Act A1614:s.12]

(a) fails to file a statutory declaration and return of profits under section 5;

[(a) Am Act A1614:s.12]

(b) fails to file a statutory declaration and return of profits under section 10; or

[(b) Am. Act 812:s.81; Am Act A1614:s.12; Am. Act 833:s.58]

(c) fails to comply with a notice given under sections 22B, 22C or subsection 22D(5),

[(c) Ins Act A1614:s.12]

shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding two years or to both.

[Am. Act A1366:s.25]

24 Miscellaneous-24. Compounding of offences.

(1) The Director General may, with the consent in writing of the Public Prosecutor, at any time before a charge is being instituted, compound any offence committed by any person under section 22 or 23, or any regulations made pursuant to subsection 21(1) by making a written offer to the person reasonably suspected of having committed the offence to compound the offence upon payment to the Director General of a sum of money not exceeding fifty per centum of the amount of the maximum fine to which the person would have been liable to if he had been convicted of the offence, within such time as may be specified in the written offer.

[(1) Am. Act 831:s.62]

(2) An offer under subsection (1) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted, and where the amount specified in the offer is not paid within the time specified in the offer, or during such exte

25 Miscellaneous-25. Penalty for false declaration.

Where any person wilfully or negligently makes an incorrect or false statutory declaration under section 5 or 10, he shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.

[Am. Act A1366:s.26; Am. Act 812:s.82]

26 Miscellaneous-26. Exemption by Minister.

(1) The Minister may, by order published in the Gazette , exempt any Labuan entity from all or any of the provisions of this Act either generally or in respect of any chargeable profits of that company.

[Am. Act A1366]

(2) Any order made under subsection (1) shall be laid before the Dewan Rakyat.

[26. Ins. Act 624:s.40]

27 Miscellaneous-27. Service of documents.

Any document, other than a notice of assessment issued under section 6 or a notice of demand issued under section 13, required to be served on a Labuan entity for the purposes of this Act, shall be deemed to be properly served on the Labuan entity by leaving it at, or sending it by post to, the registered office of the Labuan entity.

[Ins. Act A1366]

28 Miscellaneous-28. Procedure where none laid down.

In the event that any act or procedure is required or permitted to be done or taken under this Act and no form is prescribed or procedure laid down either in this Act or the regulations made under this Act, an application may be made to the Director General for directions as to the manner in which the act or procedure may be done or taken, and any act or procedure done or taken in accordance with his directions shall be a valid performance of such act or procedure.

[27. Ins. Act A1366:s.28; Am. Act A1614:s.14]