education

PENANG MEDICAL COLLEGE

2007-08-20T10:38:00.000-07:00

In collaboration with the
Royal College of Surgeons in Ireland
University College Dublin

2 ½ years pre-clinical studies in Dublin, subsequent clinical training at Penang Hospital.
PMC’s teaching programme offers Excellence, Experience and Modern Methodology.
Save up to 40% total cost.
Recognized by the Malaysian Medical Council, the Irish Medical Council and other regulatory bodies worldwide for the purpose of post-graduate training and practice.

Graduate receive the
MB BCh BAO
Conferred by the National University of Ireland

For further information, please contact :
Penang Medical College
4, Jalan Sepoy Lines, 10450 Penang, Malaysia.
Tel : 604-226 3459 / 227 6520
Fax : 604-227 6529
E-mail : medfaculty@pmc.edu.my
Website : www.pmc.edu.my

KL Admission Office : Nationwide Professional Sdn Bhd
Suite 5.19, 5^th Floor, North Block, The Amp Walk,
218, Jalan Ampang, 50450 Kuala Lumpur
Tel : 603-2166 7013
Fax : 603-2166 7023
E-mail : rcsimac@eduasia.net

MONASH University Malaysia

2007-08-20T10:23:00.000-07:00

Application open for
Bachelor of Medicine / Bachelor of Surgery (MBBS)

The Bachelor of Medicine / Bachelor of Surgery (MBBS) is a five year undergraduate medical course that is fully accredited with the Australian Medical Council. As a full branch campus of Monash University Australia, students gain the same coveted degree here in Monash University Malaysia.

We are now open for enrolment. For a path to an international medical degree, download an application form at www.med.monash.edu.au/medical/malaysia

Undergraduate and postgraduate programs offered at the various schools of the Malaysia campus :

Arts & Sciences
Business
Engineering
Information Technology
Medicine & Health Sciences

This is the world of Monash. Engage with us and you engage with the world.

Call : +603 5636 0600
E-mail : studymalaysia@monash.edu
Website : www.monash.edu.my

A campus of Monash University at Sunway
2, Jalan Universiti, Bandar Sunway,
46150 Petaling Jaya,
Selangor Darul Ehsan,
Malaysia.

MASTERSKILL College of Nursing & Health

2007-07-08T22:49:00.000-07:00

Your #1 Choice. Quality is our essence
Faculty of Allied Health
Diploma In Physiotherapy
Diploma In Environmental Health
Diploma In Healthcare
Diploma In Medical Lab Technology
Diploma In Medical Imaging
Diploma In Pharmacy

Faculty of Nursing
Diploma In Nursing

Fully Accredited by Lembaga Akreditasi Negara (LAN)
Recognised by Civil Service Department (JPA)

Approved by Ministry of Higher Education
Curriculum approved and endorsed by Nursing Board of Malaysia & Ministry of Health

For further enquiries, please contact :
Website : www.masterskill.edu.my
E-mail : info@masterskill.edu.my
MASTERSKILL College of Nursing & Health B4P4162
MAIN CAMPUS
G-8, Jalan Kemacahaya 11,
Taman Kemacahaya, Batu 9,
43200 Cheras, Selangor.
Tel : 603-9080 5888
Fax : 603-9080 1995
H/P : Ananth 019-579 6624
Khamisah 013-235 3013
Fizah 012-395 8706
Badariah 012-927 0379

Customer Care Centre Kota Kinabalu Sabah
Lot 2-1-2, 1^st Floor, Block 2,
Api-Api Centre, Jalan Centrel Point,
88000 Kota Kinabalu, Sabah.
Tel : 088-248 533 / 243 575
Fax : 088-242 545
H/P : Rimee 012-830 6145
Nortini 013-823 1698

Custome Care Centre Kuching Sarawak
2^nd Floor, Lot 251 & 252, Section 49,
Jalan Tuanku Abdul Rahman,
93100 Kuching, Sarawak.
Tel : 082-422 575
Fax : 082-411 575
H/P : Olievia 016-873 4869
Suhaida 016-890 1997
Suparman 014-684 4900
Zanariah 012-880 6889
Realise your Passion to Care & Cure

THE ONE ACADEMY We Don’t Believe In Promises, Just World-Class Results

2007-07-08T22:34:00.000-07:00

Recognised as the ‘Best of the Best’ design college in Malaysia & Singapore

Once again, The One Academy’s solid track record in giving the best industry professional training is recognized : In addition to sweeping 5 awards from USA, it is also awarded the ‘Best of the Best’ creative institution of higher learning award for both Malaysia & Singapore. This comes from a distinguished panel of creative directors & experts at some of the world’s best advertising agencies – in other words, a practical recognition from your future employers! That is how our students secure their future and headhunted by corporations worldwide – even before they graduate.
International Diploma & Degree Programmes

Advertising Design
Multimedia Design
Digital Animation (With Game Development)
Illustration (With Comics)

SMS & get brochures rushed straight to you!
Type : TOASTyour name as in ICyour IC no.your mailing address, and send to 32322 now.
(open to 012, 013, 016, 017 and 019 subscribes at RM0.50/SMS)

Add : 28, Jalan PJS 11/28A, Bandar Sunway, 46150 Petaling Jaya,
Selangor (next to Sunway Lagoon & Pyramid )
Tel : 03-5637 5510
Fax : 03-5621 1716
E-mail : enquiry@toa.edu.my
Website : www.toa.edu.my
Affiliated International Universities

University of Hertfordshire, UK
Swinburne University of Technology, AUS
University of Central England Birmingham Institute of Art & Design, UK
Auckland University of Technology, NZ
Savannah College of Art & Design, USA
University of Waikato / Wanganui School of Design, NZ
University of Wolverhampton, UK
University of the West of England, UK
College for Creative Studies, USA

ASIA PACIFIC UNIVERSITY COLLEGE OF TECHNOLOGY & INNOVATION, ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY

2007-06-30T16:28:00.000-07:00

93%+ EMPLOYED BY GRADUATION
Every course, every module, every assignment is geared towards making our students readily employable upon graduation. Professional, adaptable and innovative… that’s why our graduates are held in such high regard by employers.
UCTI/Staffordshire University Degrees
Degrees awarded in association with Staffordshire University

BA (Hons) in Business Management
BA (Hons) in International Business Management
BA (Hons) in Marketing Management
BA (Hons) in Human Resource Management
BSc (Hons) in Technopreneurship
BSc (Hons) in Computer Games Development
BSc (Hons) in Web Media Technology
BSc (Hons) in Media Marketing
BSc (Hons) in Media Informatics
BSc (Hons) in Information Technology
BSc (Hons) in Information Technology, with a specialism in Information Systems Security
BSc (Hons) in Information Technology, with a specialism in Intelligent Systems
BSc (Hons) in Information Technology, with a specialism in Network Computing
BSc (Hons) in Information Technology, with a specialism in Forensic Computing
BSc (Hons) in Enterprise Computing

Diploma & Pre-University
Diploma Programmes

Diploma in Computing & Information Technology
Diploma in Business with Information Technology

Pre-University Programme

Degree Foundation Programme

STAFFORSHIRE UNIVERSITY
Rated as the best new University by Computing employers
Staffordshire University Degrees

BSc (Hons) in Computing
BSc (Hons) in Computing, with a specialism in Web Development
BSc (Hons) in Computing, with a specialism in Multimedia Computing
BSc (Hons) in Computing, with a specialism in Software Engineering
BSc (Hons) in Computing, with a specialism in Mobile Computing
BSc (Hons) in Computing, with a specialism in Artifical Inteligence
BSc (Hons) in Computing, with a specialism in Knowledge Management
BSc (Hons) in Computing, with a specialism in Computer Security
BSc (Hons) in Computing, with a specialism in Biometrics
BSc (Hons) in Business Computing
BSc (Hons) in Business Computing, with a specialism in Management
BSc (Hons) in Business Computing, with a specialism in E-Marketing
BSc (Hons) in Business Information Technology
BSc (Hons) in E-Commerce

Staffordshire University

Master of Science Programmes
MSc in Software Engineering
MSc in Technology Management
MSc in IT Management
MSc in Multimedia Applications Management

Call us at 03-8996 1000
ASIA PACIFIC UNIVERSITY COLLEGE OF TECHNOLOGY & INNOVATION (UCTI)
E-mail : info@ucti.edu.my
Website : www.ucti.edu.my
ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY (APIIT)
E-mail : info@apiit.edu.my
Website : www.apiit.edu.my
Technology Park Malaysia, Bukit Jalil,
57000 Kuala Lumpur.
Tel : 03-8996 1000
Fax : 03-8996 1001

APIIT Education Group
Malaysia Sri Lanka
India Pakistan

SEGi COLLEGE passion guided, industry driven

2007-06-30T16:25:00.000-07:00

ENGINEERING PROGRAMMES
FIRST CLASS GRADUATES FROM FIRST RATE UNIVERSITIES

Diploma in Civil Engineering
Diploma in Chemical Engineering
Diploma in Mechatronic Engineering
Diploma in Electrical Engineering
Diploma in Electronics Engineering

Upon completion of the Diploma, Studies may articulate into Bachelor Degree programmes from The University of Sheffield, UK, The University of Southern Queensland, Australia, The University of Sunderland, UK & James Cook University, Australia

Foundation in Science

Advantages

Approved by the Ministry of Higher Education
Internationally Recognised Qualifications
Flexible payment plans (EPF withdrawal, PTPTN loan & 0% Interest Instalment Plan)

More than 300 diploma graduates have gone on to obtain 1^st Class Honours Degrees
State-of-the-art Facilities
Partnership with top-notch Universities

Call / visit us today and get career ready at SEGi College.
SEGi College Subang Jaya
City Campus, Persiaran Kewajipan USJ 1,
47600 UEP Subang Jaya, Selangor
Tel : 03-8600 1888
Fax : 03-8600 1999
Website : www.segi.edu.my
E-mail : infosj@segi.edu.my

SEGi COLLEGE passion guided, industry driven

2007-06-30T16:20:00.000-07:00

AMERICAN DEGREE PROGRAM
BSC (4+0) PSYCHOLOGY AND OTHER MAJORS
UPPER IOWA UNIVERSITY
Establish in 1957marketing
Bachelor of Science (4+0) Psychology
Other majors available
Bachelor of Science (4+0)

Management
Financial Management
Marketing
Communications
Management Information Systems

Direct Entry,
Suitable for SPM, UEC, ‘O’ Levels, STPM and Diploma Holders
Advantages

Double Majors without prolonged duration of study
Credit transfers from other colleges to complete their ADP Degrees in Malaysia accepted
Flexible payment plans (EPF withdrawal, PTPTN loan & 0% Interest Instalment Plan)

Call / visit us today and get career ready at SEGi College.
SEGi College of Graduate Studies
City Campus, Persiaran Kewajipan USJ 1,
47600 UEP Subang Jaya, Selangor
Tel : 03-8600 1888
Fax : 03-8600 1999
Website : www.segi.edu.my
E-mail : infosj@segi.edu.my

ALLIANZE COLLEGE OF MEDICAL SCIENCES

2007-06-17T09:22:00.000-07:00

acms College of Medical Science ideas beyond science

GREAT MEDICAL EXPERTS AREN’T BORN!
Thinking of a career in the medical field? Here’s another thing to consider… taking your first step towards the Allianze College of Medical Sciences (ACMS).
Enroll now for :
Doctor of Medicine (MD) Degree, twinning programme with Universities Sumatera Utara (USU) (LAN No.: KN3632) – August 2007 Intake
Certificate in Pre-Medical Studies (LAN No.: KA 5999) – July 2007 Intake
Diploma in Assistant Pharmacy (LAN No.: KA 6000) – July 2007 Intake
Diploma in Physiotherapy (LAN No.: KA 6902) – January / April 2007 Intake

Recognized By JPA, MOHE & MMC
Study Loans Available for Qualified Students!

For more information, call us at 04-578 0800 / 01 / 02
Fax : 04-578 0808 or
E-mail us at acms_penang@yahoo.com
Website : www.acms.com.my
Address : 55, Jalan Seri Serdang 3, Taman Seri Serdang,
13200 Kepala Batas, Penang.

What are cluster schools?

2007-06-17T09:20:00.000-07:00

Clusters schools are centres of excellence (within each school grouping) focusing on niche areas like music, sports, ICT, sciences, languages and special education.
300 schools will be in the pioneer group.
Applications will be open to all schools.
To help schools write their proposals, the guidelines and criteria will be published in March.
A special select committee comprising experts will be established to vet through applications and shortlist them for final approval.

Success rests on teachers

2007-06-17T09:16:00.000-07:00

NATIONAL EDUCATION BLUE PRINT 2006-2010 – Highlights
Pioneering change : A national mission
National building

Upgrade co-curricular activities under the Student Integration Programme for Unity (RIMUP) to foster better understanding between vernacular and national schools
Develop an arts curriculum for all
Build two new art schools

Developing human capital

Review KBSR and KBSM curriculum for primary and secondary schools
Upgrade ICT infrastructure in all schools
Conduct activities across the curriculum like public speaking and debates to develop students’ communication skills

Strengthening national schools

Conduct Chinese and Tamil classes in 220 pilot national schools
Develop a National Pre-school Curriculum for children above five years old
Build more school buildings to have 90% of all primary schools and 70% of secondary schools as single session schools by 2010

Bridging the rural / urban education gap

Build 805 schools, 5,138 classrooms and 841 houses for teachers in rural areas
Provide 24-hour electricity supply to 664 primary schools
Supply water to 193 rural schools
Increase the number of computers and computer labs in schools

Improving the teaching professional

Have a stringent selection process with a Malaysian Teachers Selection Test-MTesT, interview and English writing test for all applicants
Increase the number of Super Teachers
Fast-track promotion for deserving teachers

Accelerating excellence at educational institutions

Build niche schools – three new sports school, two more Special Education schools and introduce new skills courses for the hearing and learning impaired
Select 300 best schools to participate in the centres of excellence initiative
Select the best teachers and heads to lead cluster schools

COSMOPOINT

2007-06-14T18:04:00.000-07:00

SPM & STPM Leavers

Courses Offered (Diploma & Degree)

Information Technology (Software Engineering)
Information Technology (Computer & Network Support Technician)
Entrepreneur Development
Computer Graphic Design
Multimedia
Medical Lab Technology
Hospitality & Tourism
E-Business
E-Secretaryship
Sales & Marketing

Why Cosmopoint?

Industry relevant curriculum
Job assistance
Practical oriented learning
Accommodation provided
Guaranteed entry to local and overseas universities
Full loan facilities
LAN & JPA recognition
Malaysia’s largest private college

CIUC “Real World Practice”
Cosmopoint International University College
KUALA LUMPUR : Tel : 03-2694 2300
Website : www.ciuc.edu.my

COSMOPOINT College of Technology “Real World Learning”
Klang : 03-3343 1935
Seremban : 06-764 7600
Ipoh : 05-241 1616
Melaka : 06-286 0688
Sg Petani : 04-425 6061
Penang : 04-262 7440
Muar : 06-954 9455
Johor Bharu : 07-276 7500
Kuantan : 09-516 2857
Kuala Terengganu : 09-631 2223/4
Kota Bharu : 09-743 7677
Kuching : 082-240 340
Kota Kinabalu : 088-260 991

Website : www.cosmopoint.com.my

Study at Universiti Tun Abdul Razak (UNITAR)

2007-06-14T18:01:00.000-07:00

UNITAR
- Takes You Far -

Enrol here to excel

One of the most rewarding investment for the future is education. This is why Universiti Tun Abdul Razak remains the university of choice for many. Our priority is your employability in the real world. Emphasising leadership, management and entrepreneurial development, students are not only equipped with knowledge but are also groomed to meet the ever changing global demands. We believe in letting our students gain real work experience through internships and industrial training.
We offer a variety of academic courses that includes Postgraduate, Bachelor and Diploma programmes in several fields of study such as Business Administration, Information Technology, Humanities & Social Sciences and Hospitality & Tourism Management.

For more information
Tel : 603-7809 2020
Website : www.unitar.edu.my
UNITAR KELANA JAYA : 03-7809 2100

REGIONAL CENTRES :
Alor Star : 04-731 4305
Georgetown : 04-229 9168
Ipoh : 05-242 9699
Johor Bharu : 07-223 2178
Kota Bharu : 09-743 3396
Kota Kinabalu : 088-265 087
Kuching : 082-413 811

education about malaysian taxation principles and practice Part 7

2007-06-14T17:57:00.000-07:00

8.0 Year of Assessment
With effect from 1 January 2001, Malaysia moves towards the implementation of current year assessment. This results in the assessment of income tax to be concurrent with the derivation of the income.

The calendar year coinciding with a Y/A shall constitute the basis year for that Y/A.

8.1 Basic period
Self assessment was fully implemented in Y/A 2004. With effect from Y/A 2004, the income source of a person other than a company, trust body or co-operative society will be on calendar year basis. This is to facilitate the taxpayer on estimation of income tax, payment of tax and submission of return not later than 30 April of the following year.

8.2 Basis period for company, trust body and co-operative society
With effect from Y/A 2004, only company, trust body and co-operative society can have its basis period for a Y/A to be on a calendar year basis or non-calendar year basis.

8.3 Preceding year of assessment
Prior to 1 January 2000, Malaysia adopts the preceding Y/A. The imposition of the income tax is a year later than the derivation of income. Income earned in 1998 would be liable to income tax in 1999.

8.4 Y/A 2000 (preceding year)
In the year 2000, there would be two Y/As. One is the Y/A 2000 on preceding year (PYA) basis and the other is the Y/A 2000 on current year (CYA) basis.

In order to relieve taxpayers from paying two years’ income taxes within a year, the Malaysian Government has granted a waiver of income tax for the Y/A 2000 on the preceding year basis.

Resident company is further allowed to credit the chargeable income upon which income tax is waived into an exempt income account from which two-tier exempt dividends can be declared.

8.5 Non-application of income tax waiver
Although Y/A 2000 (PYA) is known as the tax waiver year, the following income would not be waived :

(i) Employment income received by non-citizen or non-resident individual who

commences or ceases employment in 1999;

(ii) Dividend income;

(iii) Royalty income, interest income (s 109), and special classes of income (s 109B) which are liable to final withholding tax.

In other words, income tax liability would still be imposed on the above income for the Y/A 2000 (preceding year basis).

education about malaysian taxation principles and practice Part 6

2007-06-14T17:54:00.000-07:00

7.0 Income received in Malaysia from outside Malaysia

Section 3 of the Act extends its territorial scope to include foreign source income that is ‘received’ in Malaysia from outside Malaysia. It imposes income tax on income received in Malaysia from outside Malaysia which is known as ‘foreign source income’.

The term ‘received’ is not defined in the Act. In the ordinary sense, it means ‘come into possession’. Thus, income that is not physically received in Malaysia would not be liable to Malaysia income tax. For example, the mere receipt of a cheque in Malaysia would not constitute ‘received’ unless it is credited into a bank account in Malaysia.

‘Received’ and ‘remitted’ are not the same. What is remitted, for example, a cheque payment, may have been lost in the post and may have never been received in Malaysia. Similarly, money brought into Malaysia by a debtor’s agent for payment to the Malaysian creditor may have never been received by the creditor if the debtor’s agent fails to discharge his debts.

7.1 Exemption
With effect from Y/A 2004, foreign source income received by any person (other than a resident company carrying on the business of banking, insurance, sea or air transport) will be exempted from income tax. The phrase ‘any person’ includes individual, trust, executor, unit trust, trading company, manufacturing company and investment holding company. Resident status is no longer relevant for exemption of foreign source income. [paragraph 28, Sch 6]

In the case of resident company, foreign source income exempted shall be credited into exempt income account of which exempt dividend on a two tier basis can be declared.

Prior to Y/A 2004, non-resident are exempted from income tax on foreign source income received in Malaysia by virtue of para 28, Sch 6 of the Act. Non-resident refers to non-resident companies, trust, individuals and other body of persons.

7.2 Y/As 1998-2003
Income Tax (Exemption) (No.48) Order 1997 [P.U.(A) 469/97]

With effect from Y/A 1998, the Minister of Finance exempts unit trust and resident companies (other than a company carrying on the business of banking, insurance, shipping and air transport) on income arising from sources outside Malaysia and received in Malaysia (foreign source income).

Such foreign source income which is tax exempt will be credited into an exempt income account for the purpose of declaring exempt dividends (two-tier exempt dividends). Corporate shareholder receiving such exempt dividends can further credit such dividends. Income Tax (Exemption) (No.48) Order replaced s 3C of the Act.
P.U.(A) 469/1997 was revoked with effect from Y/A 2004. [P.U.(A) 10/2004]

7.3 Foreign expert
In the year 2001, Malaysia government encourages Malaysian citizens working overseas (foreign experts) to return to Malaysia to boost the Malaysian economy. Income Tax (Exemption) Order 2001 [P.U.(A) 67/2001] takes effect on 1 January 2001 and its subsequent Y/As, allowing foreign source incomes of Malaysian citizens and their spouse which are received in Malaysia to be tax-exempt for a period of two years from the date they first arrived in Malaysia.

In order to qualify for the two years tax exemption, the experts must fall within one of the qualifying expertise and skills as stated by the Ministry of Human Resources and a prior approval must be obtained from the Special Committee set up by the same Ministry before their return.

education about malaysian taxation principles and practice Part 5

2007-06-14T17:52:00.000-07:00

6.0 Malaysia

Section 2 of the Act defines ‘Malaysia’ to mean :

“the territories of the Federation of Malaysia, the territorial waters of Malaysia and the sea-bed and subsoil of the territorial waters, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the sea-bed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia as an area over which Malaysia has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non-living.”

Malaysia would therefore include :

(i) Peninsular Malaysia;

(ii) East Malaysia (Sabah, Sarawak, Labuan);

(iii) Territorial waters of Malaysia;

(iv) Sea-bed and subsoil of the territorial waters; and

(v) Any other area in which Malaysia has the sovereign rights for the purpose of exploring and exploiting the natural resources such as fishing and petroleum extraction.

education about malaysian taxation principles and practice Part 4

2007-06-13T18:16:00.000-07:00

5.0 Accruing in or derived from
Malaysian income tax system is founded on the modified territorial concept. Income accrued in or derived from Malaysia will be taxed at the time of accrual or derived notwithstanding the fact that the income may not have been received in Malaysia.

There are two important factors to determine the assessability of income :
(i) the 'accrued / derived' test;
(ii) the geographical boundaries of 'Malaysia'.

5.1 'Accrued/derived' test
Accrued means 'right to receive' while derived has been defined in the Act according to the sources of income as follows :

Section Sources of income Derivation section
4(a) Business 12
4(b) Employment - general 13(2)
- public services, statutory authority 13(3)
4(c) Dividends 14(1)-(3)
Interest 15
Discounts -
4(d) Rents -
Royalties 15
Premiums -
4(e) Pensions 17(1)-(3)
Annuities and other periodical payments -
4(f) Others -
4(g) Special classes of income 15A

education about malaysian taxation principles and practice Part 3

2007-06-13T18:04:00.000-07:00

4.0 Person
Section 2 of the Act defines 'person' to include a company, a body of persons and a corporation sole.
'Body of person' is further defined as an unincorporated body of person (not being a company), including a Hindu joint family but excluding a partnership. In the case of partnership, it is the individual partner who will be assessed to tax. Examples of body of persons would be trust, club, trade association, co-operation societies, etc.

The use of word 'includes' in s 2 suggests that the definition of person is not exhaustive. The categories of person are not limited to what is defined in the Act.

It is crucial to establish the concept of 'person' because :
(i) such person will be the chargeable person assessable to tax on his income derived from such taxable activities; and
(ii) the tax rate applicable to each category of chargeable person varies, some are taxed at flat rate while other are taxed at scaled rates or reduced rates.

education about malaysian taxation principles and practice part 2

2007-06-13T16:51:00.000-07:00

3.0 Income
The distinction between capital and income is crucial. The Act imposes income tax on 'income'. Capital gains are not chargeable to income tax. The Act does not define 'income' nor 'capital', thus one needs to research through the case laws for guidance.

Lord Macmillan observed in Van den Berghs Ltd v Clark (19 TC 390) at p. 428 :
"...The income Tax Acts nowhere define 'income' any more than they define 'capital'; they
describe sources of income and prescribe methods of computing income, but what constitutes
income they discreetly refrain from saying ... Consequently it is to the decided cases that one
must go in search of light..."

In practice, the distinction between 'capital' and 'income' is never an easy task. Greene MR commented in CIR v British Salmson Aero Engines Ltd [1938] 2 KB 482 at p. 498 :
"...in many cases it is almost true to say that the spin of a coin would decide the matter almost
as satisfactorily as an attempt to find reasons."

Generally, the issue of income determination would be resolved by examining the pertinent facts of a particular case using the standards of a reasonable man. Income has the characteristics of repetitive, flow from a source of income and received in the ordinary course of business. It must also be examined from the recipient's perspective. On the other hand, realisations from long term investment or personal assets are capital transactions. Such gains are capital receipts.

3.1 Commonwealth laws
Although judicial guidance does provide assistance on the meaning of 'income', it is however never exhaustive. The merits of each case must be considered. In CIT, Bengal v Shaw Wallace & Co (1932) 6 ITC 178, 'income' connotes a periodical monetary return 'coming in' with some sort of regularity, or expected regularity, from defined sources.

The source is not necessarily of one which is expected to be continuously productive, but it must be one whose object is the production of a definite return, excluding anything in the nature of a mere a windfall. Windfall, gambling or profits arising from speculative activities are capital gains and would not be subject to income tax.

Cost saving is not income and would not be taxed. In FCT v Cooke and Sherden (1980) 10 ATR 696 (Full FC), the court establish that 'If the receipt of an item saves a taxpayer from incurring expenditure, the saving is not income. Income is what comes in, it is not what is saved from going out.

3.2 Malaysian experience
In Mamor Sdn Bhd v Director General of Inland Revenue [1981] 1 MLJ 117 (HC), the company appealed to the High Court on the issue of whether a sum received from the extraction and sale of timber from State Government land, alienated to the company for the development of oil palm, would be 'income' in nature and be assessable to the income tax.

In the said case, Annuar J. laid down the following propositions of law :
(a) In order for transaction to be taxed as income, the nature of gains or profits has to fall into
any of the s 4(a) to (f).
(b) Not every gain, profit or earning of the taxpayer is 'income' for the purpose of tax.
(c) One has to resort to case laws to explore the scope of 'income'.
(d) A rigid / strict interpretation of the Act is required. Fairness or equity is never a
consideration for the interpretation of Income Tax Act.

The distinction between 'income' and 'capital' is a difficult one. Although the High Court in Mamor held that the extraction and sale of timber in the course of developing the said land into oil palm plantation is capital, the Federal Court nonetheless reversed the High Court's decision and held that the extraction and sale of timber fall into the ambit of s 4(a) - Business Income and subject to income tax.

Upon further appeal to Privy Council, Lord Keith of Kinkel at the Privy Council, however restored Anuar J's decision and held that the sale of timber in the course of oil palm plantation was a capital transaction. In the Lordship's view, the extraction of timber was inseparable from the process of developing the land as an oil palm plantation. Sale of the timber was a sound economic course to mitigate the cost of development, a capital expenditure.

Mamor's decision was one of the many cases illustrating the difficulty in distinguishing between 'income' and 'capital'. With the same facts, the High Court and Federal; Court could arrive at different conclusions. It is therefore concluded that the question of income or capital is a question of law for the courts to decide.

3.3 Offshore business
Section 3 sets the scope of income tax, that is, income accrued in or derived from Malaysia would be tax. However, s 3B of the Act specifically provides that income derived by an offshore company in respect of offshore business activity is not chargeable to income tax. The law governing the tax for such offshore business activity is the Labuan Offshore Business Activity Tax Act, 1990 and not the Income Tax Act 1967.

education about malaysian taxation principles and practice

2007-06-12T16:57:00.000-07:00

SCOPE OF CHARGE

1.0 Introduction
In Malaysia, the law governing income taxation in the Income Tax Act 1967 (Act 53/1967). A transaction must fall within the ambit of 'scope of charge' as provided in s 3 of the Act in order to be liable to income tax. if it is not within the ambit of s 3, no income tax due is in respect of such a transaction. In short, it is tax free.

2.0 Scope of charge
Section 3 of the Act provides :
"Subject to and in accordance with this Act, a tax to be known as income tax shall be charged for each Y/A upon the income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia."

Section 3 sets out two circumstances where income tax liability arises, namely :
(a) the transaction must be 'income' in nature and such income is accrued in or derived from Malaysia ; or
(b) the transaction must be 'income' in nature and it is received in Malaysia from outside Malaysia (foreign source income).
Income tax would be imposed by reference to a Y/A upon a person's income. such person is known as a chargeable person.

2.1 Source of income
The Act does not define the meaning of 'income' but merely categories the income under ss 4 and 4A as follows :

a. Classes of income on which tax is chargeable
Section 4 Subject to this Act, the income upon which tax is chargeable under this Act is
income in respect of :
(a) gains or profits from a business, for whatever period of time carried on,
(b) gains or profits from employment,
(c) dividends, interest or discounts,
(d) rents, royalties or premiums,
(e) pensions, annuities or other periodical payments not falling under any of the foregoing
paragraphs,
(f) gains or profits not falling under any of the foregoing paragraphs.

b. Special classes of income on which tax is chargeable
Section 4A Notwithstanding the provisions of s 4 and subject to this Act, the income of a
person not resident in Malaysia for the basis year for a Y/A in respect of :
(i) amount paid in consideration of services rendered by the person or his employee in
connection with the use of property or rights belonging to, or the installation or operation of
any plant, machinery or other apparatus purchased from, such person;
(ii) amounts paid in consideration of technical advice, assistance or services rendered in
connection with technical management or administration of any scientific, industrial or
commercial undertaking, venture, project or scheme; or
(iii) rent or other payments, made under any agreement or arrangement for the use of any
moveable property,
which is derived from Malaysia is chargeable to tax under this Act.
Although income has been classified into sub-paras (a) to (f) under s 4 and sub-paras (i) to (iii) under s 4A, they are not mutually exclusive. In ALB Co Sdn Bhd v Director General of Inland Revenue [1979] 1 MLJ 1 (PC), the Privy Council held that although rental income was classified under s 4(d), it can be classified under s 4(a) if it was received in the ordinary course of business.

The transaction must fall within either s 4 or 4A, being income in nature, before it is liable to income tax. In Dickson v Abel (45 TC 353), the court held that payment by way of gift was not taxable on the recipient as it was not within the taxable sources as listed by the legislation. Gift is a capital receipt. Thus, it is tax free.