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

(1) This Act may be cited as the Inland Revenue Board of Malaysia Act 1995 .

(2) This Act shall come into force on such date as the Minister may, by notification in the Gazette , appoint.

2 PART I PRELIMINARY-2. Interpretation.

In this Act, unless the context otherwise requires-

  "appointed day"  means the day on which this Act comes into force;

  "Board"  means the Inland Revenue Board of Malaysia established under section 3;

  "body"  means a body corporate;

[Am. by Act A1020: s.2]

  "Chairman"  means the Chairman of the Board and includes any temporary Chairman of the Board;

  "chief executive officer"  means the chief executive officer appointed under subsection 6A(1) and includes any person appointed under subsection 6A(3);

[Am. by Act A997:s.2]

  "Director General"  means the Director General of Inland Revenue referred t

3 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-3. Establishment of the Inland Revenue Board.

There is hereby established a body corporate by the name "Inland Revenue Board of Malaysia" with perpetual succession and a common seal, and which may sue and be sued in its name and, subject to and for the purposes of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Board upon such terms as it deems fit.

4 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-4. Vesting provisions.

(1) Subject to this Act, the Minister may, from time to time, by order published in the Gazette , appoint a vesting date and on such date all property, rights or liabilities of the Government of Malaysia specified by the Minister in such order shall, by virtue of this Act, be transferred to and vested in the Board without any conveyance, assignment or transfer whatever.

(2) Every property vested by virtue of subsection (1) in the Board shall be so vested in the Board for the like title, estate or interest and on the like tenure as the same was vested or held immediately before the vesting date.

(3) Every chose-in-action vested by virtue of subsection (1) in the Board may, after the vesting date, be sued on, recovered or enforced by the Board in its own name and it shall not be necessary for the Board or the Government of Malaysia to give notice to the person bound by the chose-in-action of the vesting effected by subsection (1).

5 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-5. Common seal.

(1) The common seal of the Board shall bear such device as the Board may approve and such seal may from time to time be broken, changed, altered and made anew by the Board as it may think fit.

(2) The common seal shall be kept in the custody of the Chairman and shall be authenticated by any two members generally or specially authorized by the Board for the purpose or by one member and the Chairman.

(3) All deeds, documents and other instruments purporting to be sealed with the common seal and authenticated in accordance with subsection (2) shall, until the contrary is proved, be deemed to have been validly executed.

(4) The common seal of the Board shall be officially and judicially noticed.

6 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-6. Membership of the Board.

(1) The Board shall consist of the following members:

(a) the Secretary General to the Treasury, who shall be the Chairman;

(b) the Attorney General or his representative;

(c) the Director General of Public Service or his representative;

(ca) the chief executive officer;

[(ca) Ins. by Act A1475 of the year 2015]

(d) not more than two other persons representing the Government, who shall be appointed by the Minister;

[Am. by Act A1698/2023]

(da) a person representing the State of Sabah who shall be appointed by the Minister after consultation with the Chief Minister of Sabah;

[(da) Ins. by Act A1698/2023]

(db) a person representing the State of Sarawak who shall be appointed by the Minister after consultation with the Premier of Sara

6A PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-6A. Chief Executive Officer.

(1) The Minister shall, on the recommendation of the Board, appoint a chief executive officer who shall be responsible for the day-to-day administration of the Board.

(1A) The Board shall, after consulting the chief executive officer, appoint two or more deputy chief executive officers.

[(1A) Ins. by Act A1418 of the year 2012]

(2) The appointment of the chief executive officer and the deputy chief executive officers shall be notified in the Gazette .

[(2) Am. by Act A1418 of the year 2012]

(3) In the event the chief executive officer is temporarily unable to perform his duties due to illness or any other cause, the Minister shall, on the recommendation of the Board, appoint one of the deputy chief executive officers to act in place of the chief executive officer during the period of inability.

[Ins. by Act A997: s.4]

7 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-7. Terms of office.

Subject to such terms as the Minister may determine, a member appointed under paragraph 6(1) (d) , (da) , (db) , shall hold office for a term not exceeding three years and shall be eligible for reappointment.

[Am. by Act A1698/2023; Act A997: s.5]

8 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-8. Disqualification of member.

No person shall continue to hold office as a member if he-

(a) is convicted of an offence involving fraud, dishonesty or moral turpitude;

(b) is of unsound mind or is otherwise incapable of discharging his duties;

(c) is adjudicated a bankrupt; or

(d) absents himself from three consecutive meetings of the Board without leave of the Chairman.

9 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD-9. Revocation and resignation of member.

(1) The Minister may, at any time, without giving any reason therefor, revoke the appointment of-

(a) any member appointed under paragraph 6(1) (d) or (e) ;

(b) a member appointed under paragraph 6(1) (da) after consultation with the Chief Minister of Sabah provided that another person shall be appointed forthwith as required under paragraph 6(1) (da) in place of that member whose appointment has been so revoked; or

(c) a member appointed under paragraph 6(1) (db) after consultation with the Premier of Sarawak provided that another person shall be appointed forthwith as required under paragraph 6(1) (db) in place of that member whose appointment has been so revoked.

[(1) Subs. by Act A1698/2023]

(2) Any member appointed under paragraph 6(1) (d) , (da) , (db) or <

10 PART III FUNCTIONS AND POWERS OF THE BOARD-10. Functions of the Board.

The functions of the Board shall be-

(a) to act as agent of the Government and to provide services in administering, assessing, collecting and enforcing payment of income tax, petroleum income tax, real property gains tax, estate duty, stamp duties and such other taxes as may be agreed between the Government and the Board;

(b) to advise the Government on matters relating to taxation and to liaise with the appropriate Ministries and statutory bodies on such matters;

(c) to participate in or outside Malaysia in respect of matters relating to taxation; and

(d) to perform such other functions as are conferred on the Board by any other written law.

10A PART III FUNCTIONS AND POWERS OF THE BOARD-10A. Board may act as collection agent.

(1) Notwithstanding section 10, the Board may act as a collection agent for and on behalf of any body for the recovery of loans due for repayment to that body under any written law.

(2) For the purposes of this section the Minister may, from time to time, give directions and make regulations in relation to the collection of the repayments.

[Am. by Act A1020: s.3]

10B PART III FUNCTIONS AND POWERS OF THE BOARD-10B. Additional function of the Board.

The Board may perform such other function as may be directed by the Minister, including the management of moneys allocated by the Government for the implementation of any programme and disbursement of the moneys to any person.

[Ins. by Act A1418 of the year 2012]

11 PART III FUNCTIONS AND POWERS OF THE BOARD-11. Powers of the Board.

(1) The Board shall have power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

(2) Without prejudice to the generality of subsection (1), the powers of the Board shall include power-

(a) to enter into contracts;

(b) to utilise all property of the Board, movable and immovable, in such manner as the Board may think expedient including the raising of loans by mortgaging such property;

(c) to engage in any activity, either alone or in conjunction with other organisations or international agencies, to promote better understanding of taxation;

(d) to provide technical advice or assistance, including training facilities, to tax authorities of other countries;

(e) to impose fees or charges for services rendered by the Board;

(f) to grant loans to employees of the Board for any

12 PART III FUNCTIONS AND POWERS OF THE BOARD-12. Appointment of committees.

(1) For the purposes of performing its functions, the Board may establish such committees as it considers necessary, and with such terms of reference as it may specify.

(2) Members of a committee established under subsection (1) may be appointed from amongst members of the Board or such other persons as the Board thinks fit.

(3) Persons who are disqualified from being members of the Board under section 8 shall also be disqualified from being members of a committee.

(4) A member of the committee shall hold office for such term as may be specified in his letter of appointment and is eligible for reappointment.

(5) The Board may revoke the appointment of any member of a committee without assigning any reason therefor.

(6) A member of a committee may at any time resign by giving notice in writing to the Chairman of the Board.

(7) There may be paid to members of a committee such allowances out of the funds of

13 PART III FUNCTIONS AND POWERS OF THE BOARD-13. Delegation of powers.

(1) The Board may delegate to any committee established under section 12 such of its functions as it may deem necessary or desirable.

(2) Any functions delegated under this section-

(a) may be so delegated subject to such conditions or restrictions as the Board may either generally or specifically impose;

(b) shall be exercised by the committee in the name and on behalf of the Board.

(3) No delegation made under this section shall preclude the Board itself from exercising or performing at any time any of the functions so delegated.

14 PART III FUNCTIONS AND POWERS OF THE BOARD-14. Power of Minister to give directions and require information.

(1) The Minister may give to the Board such directions of a general character not inconsistent with this Act relating to the performance of the Board's functions and the Board shall give effect to all such directions.

(2) The Board shall furnish the Minister with such returns, accounts and other information as he may, from time to time, require.

15 PART IV PROVISIONS RELATING TO EMPLOYEES-15. Employment.

(1) The Board shall on the appointed day accept into its employment every person who immediately before that date is in the employment or service of the Inland Revenue Department, Malaysia, and who was given an option by the Government of Malaysia and has opted to serve as an employee of the Board.

(2) Every such person who opts under subsection (1) to serve as an employee of the Board shall be employed by the Board on terms and conditions of service not less favourable than the terms and conditions of service to which he was entitled to immediately before the date mentioned in subsection (1).

(3) Until such time as terms and conditions of service including the conduct and discipline of its employees are drawn up by the Board, the scheme and terms and conditions of service including the conduct and discipline of employees of the Government shall mutatis mutandis continue to apply to every person employed by the Board under subs

16 PART IV PROVISIONS RELATING TO EMPLOYEES-16. Salaries, terms and conditions of service of Government employees to be taken into account.

(1) The terms and conditions to be drawn up by the Board shall take into account the salaries and terms and conditions of service, including any accrued rights to leave, enjoyed by the persons while in the employment of the Government before opting into the service of the Board; and any such term or condition relating to the length of service with the Board shall provide for the recognition of service with the Government by the persons making the option as service with the Board.

(2) Where any person in the service of the Board whose case does not fall within the scope of any pension or other schemes established under this section retires or dies whilst in the service of the Board or is discharged from such service, the Board may grant to him or to such other person or persons wholly or partly dependent on him, as the Board thinks fit, such allowance or gratuity as the Board may determine.

17 PART IV PROVISIONS RELATING TO EMPLOYEES-17. Appointment of other employees, agents and consultants.

(1) Subject to such regulations as may be made under sections 18 and 34, the Board may, from time to time, appoint and employ on such terms and conditions as the Board may think fit such other employees as may be necessary for carrying out the purposes of this Act.

(2) The Board may appoint and employ such consultants and agents to transact any business or to do any act required to be transacted or done in the execution of its functions or for the better carrying into effect the purposes of this Act.

18 PART IV PROVISIONS RELATING TO EMPLOYEES-18. Discipline.

(1) The Board shall have disciplinary authority over all its employees and shall exercise disciplinary control in respect of all such persons.

(2) The Board may, with the approval of the Minister, make regulations with respect to the discipline of its employees.

(3) The disciplinary regulations made under this section-

(a) may create disciplinary offences;

(b) may provide for such disciplinary punishments as the Board may deem appropriate and the punishments may extend to-

(i) a warning;

(ii) a fine;

(iii) a forfeiture of emoluments;

(iv) a deferment of salary movement;

(v) a reduction of salary;

(vi) a reduction in rank; and

(vii) a dismissal;

(c) shall provide for an opportunity to an employee against whom disciplinary proceedings are taken to make representations against the disciplinary c

18A PART IV PROVISIONS RELATING TO EMPLOYEES-18A. Disciplinary Committees.

(1) The Board may establish different Disciplinary Committees for different category of its employees.

(2) The following shall apply to a Disciplinary Committee:

(a) a Disciplinary Committee shall consist of any number of members or employees of the Board, or any combination of such members and employees; and

(b) an employee who is a member of a Disciplinary Committee shall not be lower in rank than an employee over whom the Disciplinary Committee of which he is a member has disciplinary authority.

(3) A Disciplinary Committee shall exercise its power in all matters relating to the discipline of employees placed under its jurisdiction.

(4) In the exercise of its disciplinary functions and powers, a Disciplinary Committee shall have the power to take disciplinary action and impose any disciplinary punishment or any combination of two or more disciplinary punishments as

18B PART IV PROVISIONS RELATING TO EMPLOYEES-18B. Disciplinary proceedings in respect of chief executive officer.

(1) The Disciplinary Committee in respect of the chief executive officer shall consist of the Chairman of the Board as chairman and two members of the Board appointed by the Chairman of the Board.

(2) The Disciplinary Committee established under subsection (1) shall have the power to conduct disciplinary proceedings against the chief executive officer in accordance with any disciplinary regulations made under section 18 and may make any recommendation to the Minister as to the punishment to be imposed on or any other action that may be taken against the chief executive officer.

(3) The decision of the Minister under subsection (2) shall be final.

[Ins. by Act A1301: s.4]

18C PART IV PROVISIONS RELATING TO EMPLOYEES-18C. Disciplinary Appeal Committee.

(1) A decision of the Disciplinary Committee referred to in section 18A may be appealable to the Disciplinary Appeal Committee which shall consist of the following members:

(a) the Chairman of the Board, who shall be the chairman of the Disciplinary Appeal Committee and who shall have the casting vote; and

(b) two other members of the Board not being members of the Disciplinary Committee whose decision is the subject matter of the appeal, to be appointed by the chairman of the Disciplinary Appeal Committee with the approval of the Board for the purpose of the appeal.

(2) When the Disciplinary Appeal Committee considers an appeal, a member of the Disciplinary Committee against whose decision the appeal is made shall not be present or in any way participate in any proceedings relating to that appeal.

(3) The Disciplinary Appeal Committee may confirm, reverse, vary the decision o

18D PART IV PROVISIONS RELATING TO EMPLOYEES-18D. Termination of service on grounds of public interest.

(1) Where the Board finds or where representations are made to the Board that it is desirable that the service of an employee be terminated in the public interest, the Board may direct the superior officer of the employee against whom the representations are made to submit to the Board a full report which shall contain particulars relating to the work and conduct of that officer, and the comments of that officer's Head of Department.

(2) If, after considering the report submitted under subsection (1), the Board is satisfied that, having regard to the conditions of service, the work, the conduct and the usefulness of the employee and all other circumstances of the case, it is desirable in the public interest to do so, the Board may terminate the service of that employee from such date as the Board shall specify.

[Ins. by Act A1301: s.4]

18E PART IV PROVISIONS RELATING TO EMPLOYEES-18E. Recommendation by Disciplinary Committee.

(1) It shall be lawful for a Disciplinary Committee to recommend to the Board that the service of an employee over whom that Committee exercises disciplinary jurisdiction be terminated in the public interest even though no disciplinary proceedings have been carried out under this Act.

(2) A recommendation to the Board under subsection (1) shall be accompanied by a full report of the grounds upon which such recommendation is based.

(3) The Board may direct the superior officer of the employee referred to in subsection (1) to submit to the Board any additional information in respect of the employee as the Board may require.

(4) If, after considering the report submitted under subsection (2) and any additional information submitted under subsection (3) the Board is satisfied that, having regard to the conditions of service, the work, the conduct and the usefulness of the employee and all other circumstances of the case, it is desir

18F PART IV PROVISIONS RELATING TO EMPLOYEES-18F. Opportunity to be heard.

Notwithstanding anything in this Act and any other law to the contrary, before the Board makes a decision under section 18D or 18E to terminate the service of an employee, the Board shall give that employee an opportunity to be heard.

[Ins. by Act A1301: s.4]

18G PART IV PROVISIONS RELATING TO EMPLOYEES-18G. Termination of service is not dismissal.

The termination of service of an employee under sections 18D and 18E is not and shall not be regarded as a dismissal notwithstanding that the termination involves an element of punishment or is connected with conduct in relation to his office which the Board regards as unsatisfactory or blameworthy.

[Ins. by Act A1301: s.4]

19 PART IV PROVISIONS RELATING TO EMPLOYEES-19. Continuation and completion of disciplinary proceedings.

(1) Where on the appointed day any disciplinary proceedings is pending or existing against any employee of the Government who has opted into the service of the Board, such proceedings shall be continued and completed by the Board.

(2) An order, ruling or direction made or given by a committee pursuant to this section shall be treated as an order, ruling or direction of the Board and have the same force or effect as if it had been made or given by the Board pursuant to the authority vested in the Board under this Act.

20 PART IV PROVISIONS RELATING TO EMPLOYEES-20. Imposition of surcharge.

(1) If the Board is satisfied that any person who is or was in its employment-

(a) is or was responsible for any improper payment of moneys from the Fund or for any payment of such moneys which is not duly vouched;

(aa) did not or has failed to collect any money owing to the Board the collection of which he was or is responsible;

[(aa) Ins. by Act A1301: s.5]

(b) is or was responsible for any deficiency in, or for the destruction of, any moneys, securities, stores or other property of the Board;

(c) being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

(d) has failed to make any payment, or is or was responsible for any delay in the payment, of moneys from the Board to any person to whom such payment is due under any contract, agreement or arrangement entered into between that

21 PART IV PROVISIONS RELATING TO EMPLOYEES-21. Protection from personal liability.

No suit or other legal proceedings shall lie personally against any member, officer or employee of the Board or any other person under the direction of the Board for anything which is done in good faith or intended to be done in the execution or purported execution of this Act.

22 PART IV PROVISIONS RELATING TO EMPLOYEES-22. Public servants.

All members of the Board and its committee and all officers, employees or agents of the Board shall be deemed to be public servants within the meaning of the Penal Code [Act 574] .

23 PART V FINANCIAL PROVISIONS-23. Fund of the Board.

(1) There shall be established, for the purposes of this Act, a Fund to be administered and controlled by the Board.

(2) The Fund of the Board shall consist of-

(a) all moneys received by the Board for services rendered by the Board to the Government as its agent or for services rendered by the Board to any person;

(b) all moneys received by the Board by way of grants;

(c) all moneys derived from the disposal, lease or hire of, or any other dealing with, any property vested in or acquired by the Board;

(d) all moneys derived as income from investment by the Board;

(e) all moneys borrowed by the Board under this Act; and

(f) all other moneys lawfully received by the Board.

24 PART V FINANCIAL PROVISIONS-24. Annual estimates.

(1) The chief executive officer shall, not later than one month before the commencement of each financial year, in a meeting of the Board, lay before the Board an estimate of the expenditure of the Board (including capital expenditure) for the ensuing year in such detail and form as the Board may determine.

(2) A copy of the estimates referred to in subsection (1) shall be sent to each member of the Board not less than fourteen days before the estimates are laid.

[Subs. by Act A1475 of the year 2015]

25 PART V FINANCIAL PROVISIONS-25. Power to borrow.

The Board may, from time to time for the purposes of this Act, raise loans from the Government or with the consent of the Minister, from any other source.

26 PART V FINANCIAL PROVISIONS-26. Grants.

For the purposes of enabling the Board to carry out its functions under this Act, the Minister may, from time to time, make grants-in-aid to the Board of such sums of money as the Minister may determine out of moneys to be provided by Parliament.

27 PART V FINANCIAL PROVISIONS-27. Bank accounts and application of revenue.

(1) The Board shall open and maintain an account or accounts with such bank or banks as the Board thinks fit; and every such account shall be operated upon as far as practicable by cheque signed by such person or persons as may, from time to time, be authorised by the Board.

(2) The moneys of the Board shall be applied only in payment of discharge of the expenses, obligations and liabilities of the Board and in making any payment that the Board is authorised or required to make.

28 PART V FINANCIAL PROVISIONS-28. Investment.

The Board may, with the approval of the Minister, invest any of its funds available for investment in the following manner:

(a) by depositing in-

(i) Bank Negara Malaysia;

(ii) banks duly licensed under the Banking and Financial Institutions Act 1989 [Act 372] ;

[Am. by Act A1698/2023]

(iii) any other financial institution duly licensed under the Banking and Financial Institutions Act 1989;

(iv) an Islamic bank duly licensed under the Islamic Financial Services Act 2013 [Act 759] ;

[(iv) Ins. by Act A1698/2023]

(v) any other financial institution duly licensed under the Islamic Financial Services Act 2013;

[(v) Ins. by Act A1698/2023]

(vi) a development financial institution duly regulated under the Development Financial Institutions Act 2002 [Act 618]

28A PART V FINANCIAL PROVISIONS-28A. Power to establish companies.

The Board may, with the approval of the Minister, establish companies under the Companies Act 1965 [Act 125] to carry out and have the charge on or engage in any project, scheme or enterprise which has been planned or undertaken by the Board in the performance of its functions or the exercise of its powers under this Act.

[Ins. by Act A1475 of the year 2015]

29 PART VI GENERAL-29. No proceedings against the Board as agent of Government.

(1) No action or legal proceedings shall be brought against the Board in respect of any matter relating to any tax for which the Board is acting as agent of the Government.

(2) Any action or legal proceedings in respect of any matter relating to tax shall be instituted by or against the Government.

30 PART VI GENERAL-30. Proceedings conducted by officers of the Board.

(1) Proceedings in respect of any offence under this Act or any regulations made thereunder or any of the Acts specified in the Second Schedule or any subsidiary legislation made under any of those Acts may with the consent of the Public Prosecutor, be conducted by an officer of the Board who is authorized to conduct such proceedings by the Director General.

[Am. by Act A997: s.8]

(2) Notwithstanding the provisions of any written law, a legal officer as defined in the Government Proceedings Act 1956 [Act 359] or a legal officer of the Board who has been admitted as an advocate and solicitor under the Legal Profession Act 1976 [Act 166] may appear in any civil proceedings involving the Board or any person holding any of the offices specified in the Third Schedule in the performance of his functions under any written law so specified, and may make and do all acts and applications in respect of such

31 PART VI GENERAL-31. Obligation of secrecy.

(1) Except as provided in this Act or for the purpose of any civil or criminal proceedings under any written law, no member, officer, employee or agent of the Board, whether during his tenure of office, or during his employment or thereafter, and no other person who has by any means access to any information or document whatsoever relating to the affairs of the Board shall give, divulge, reveal or otherwise disclose such information or document to any person.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three years or to both.

32 PART VI GENERAL-32. Statutory Bodies (Accounts and Annual Reports) Act 1980.

The provisions of the Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240] shall apply to the Board.

33 PART VI GENERAL-33. Power of Minister to amend the Second and Third Schedules.

The Minister may, by order published in the Gazette , amend the Second and Third Schedules.

34 PART VI GENERAL-34. Regulations.

(1) The Board may, with the approval of the Minister, make such regulations as may be expedient or necessary for carrying out the purposes of this Act.

(2) Without prejudice to the generality of subsection (1), the Board may make regulations for or with respect to all or any of the following matters:

(a) the manner of appointment, and the terms and conditions of service of the officers and employees of the Board;

(b) the payment of gratuities and other benefits to officers and employees of the Board; and

(c) the fees or charges to be imposed in respect of anything done under or by virtue of this Act.