{"id":3585,"date":"2022-07-18T08:23:37","date_gmt":"2022-07-18T00:23:37","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=3585"},"modified":"2024-09-09T09:11:35","modified_gmt":"2024-09-09T01:11:35","slug":"revenue-law-income-tax","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/my\/revenue-law-income-tax\/","title":{"rendered":"REVENUE LAW \u2013 INCOME TAX"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Smith is a director for Company X in the year of 2003. In 2022, the government claimed unpaid tax against Company X and Smith. The government claimed that Company X and Smith are jointly and severally liable for outstanding tax due by the company for the year of assessment (\u201c<\/span><b>YA<\/b><span style=\"font-weight: 400;\">\u201d) 2001 &#8211; 2004.<\/span><\/p>\n<p><b>Q:<\/b><span style=\"font-weight: 400;\"> Is Smith responsible for the tax due by the company for YAs 2001-2004?&nbsp;<\/span><\/p>\n<p><b>A:<\/b><span style=\"font-weight: 400;\"> Not entirely correct. Smith is only responsible for tax of the company after he became a director. And in this case, only for YA 2004. Although the Income Tax Act of 1967 (ITA) says directors can be held jointly and severally responsible for a company\u2019s tax liabilities, it is impractical, ineffective, and unjust to impose this obligation before Smith became a director.<\/span><\/p>\n<p><b>Q:<\/b><span style=\"font-weight: 400;\"> Can Smith be liable for tax after 6 years?<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>A<\/strong>: No. Section 106(1) of the ITA says \u201c(t)<\/span><i><span style=\"font-weight: 400;\">ax due and payable may be recovered by the Government by civil proceedings as a debt due to the Government.<\/span><\/i><span style=\"font-weight: 400;\">\u201d However, s. 106(1) is still subject to the Limitations Act 1953. There is a six-year statute of limitation. The government can no longer claim unpaid tax due after 6 years. And in this case, the alleged unpaid tax was 17 years ago.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Can you be held accountable for outstanding tax due by the company for the year of assessment before you were appointed as a director?<\/p>","protected":false},"author":9,"featured_media":3607,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3349],"tags":[2248,2685],"class_list":["post-3585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-revenue-law","tag-director","tag-income-tax"],"_links":{"self":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/3585"}],"collection":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/comments?post=3585"}],"version-history":[{"count":2,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/3585\/revisions"}],"predecessor-version":[{"id":3587,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/3585\/revisions\/3587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/media\/3607"}],"wp:attachment":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/media?parent=3585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/categories?post=3585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/tags?post=3585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}