LHDN told to refund company RM286mil for imposing additional tax, penalties

Free Malaysia Today

Court of Appeal unanimously rules that the proceeds from the sale of intellectual property rights are a capital receipt, not income.  Read More: https://www.freemalaysiatoday.com/category/nation/2024/05/27/lhdn-told-to-refund-company-rm286mil-for-imposing-additional-tax-penalties/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #LHDN #Keysight #AdditionalTax

Transcript

00:00 The Court of Appeal has ordered the Inland Revenue Board to refund a Penang-based manufacturer

00:08 R286 million for additional taxes and penalties imposed for the year 2008.

00:16 Justice Colin Lawrence Sekerah, in delivering the unanimous decision of a three-member bench,

00:22 held that the High Court and Special Commissioners of Income Tax had erred in upholding the tax

00:27 assessment issued by LHDN.

00:30 The bench agreed with electronics manufacturer Keysight Technologies Malaysia's Sundarian

00:35 Berhad that the proceeds from the sale of intellectual property rights are a capital

00:39 receipt instead of income, and therefore not taxable.

00:45 Keysight had sold its IP in the form of technical know-how under a global restructuring programme,

00:51 after which LHDN initiated an audit and eventually assessed the proceeds from the sale of the

00:57 IP as income.

00:59 Keysight paid the R286 million assessment to LHDN and filed an appeal to the SCIT, which

01:06 was dismissed in March 2020.

01:09 The High Court affirmed the decision in May 2021.

01:14 The Court of Appeal, in overturning the earlier judgments, also found that LHDN's assessment

01:19 was time-barred as it was issued past the expiry of the five-year limitation period

01:25 under the Income Tax Act 1967.

01:28 (gentle music)

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Transcript

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