*AKTA LEMBAGA HASIL DALAM NEGERI MALAYSIA 1995

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

Interpretation

) 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.

) 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).

) Every right and liability vested by virtue of subsection (1) in the

Board may, on and after the vesting date, be sued on, recovered or enforced by or against the Board in its own name and it shall not be

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necessary for the Board or the Government of Malaysia to give notice to the person whose right or liability is affected by the vesting under subsection (1).

) Any pending legal proceedings by or against the Government of

Malaysia which relate to any property, right or liability transferred to and vested in the Board by virtue of subsection (1) may, on and after the vesting date, be continued by or against the Board.

) In the case of rights and liabilities arising under any loans which is vested in the Board on the vesting date, the Board may enter into such arrangements or agreements over such rights and liabilities with the Government of Malaysia or any third party.

) On and after the vesting date, any agreement relating to any property, rights and liabilities transferred to and vested in the Board under subsection (1) to which the Government of Malaysia was a party immediately before the vesting date, whether in writing or not, and whether or not of such a nature that rights and liabilities thereunder could be assigned by the Government of Malaysia, shall have effect as if the Board has been a party to the agreement.

Common seal

) 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.

) 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.

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

Membership of the Board

the Secretary General to the Treasury, who shall be the

Chairman;

the Attorney General or his representative;

the Director General of Public Service or his representative;

not more than two other persons representing the

Government, who shall be appointed by the Minister;

Chief Minister of Sabah;

not more than three other persons who shall be appointed by the Minister.

) The members appointed under paragraphs (1)(da), (db) and (e)

shall be from among persons of standing and experience in financial, commercial, tax or legal matters.

) (Deleted by Act A997).

) In the event of the Chairman being absent or unable to act due to illness or any other cause, the Minister shall appoint any member of the Board to be the temporary Chairman.

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) The provisions of the First Schedule shall apply to the Board.

Chief executive officer

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

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

) 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.

Terms of office

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

is of unsound mind or is otherwise incapable of discharging his duties;

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is adjudicated a bankrupt; or

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

Revocation and resignation of member

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

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

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.

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

may at any time resign from his office by giving notice in writing to the Minister.

to act as agent of the Government and to provide services in administering, assessing, collecting and enforcing payment

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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;

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

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

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

Board may act as collection agent

) 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.

Additional function of the Board

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

to enter into contracts;

to utilize 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;

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

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

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

to grant loans to employees of the Board for any purpose specifically approved by the Board;

to provide recreational facilities and promote recreational activities for, and activities conducive to, the welfare of employees of the Board;

to provide training for employees of the Board and to awards scholarships or otherwise pay for such training; and

to do anything incidental to any of its powers.

) For the avoidance of doubt, the powers of the Board shall not include the powers of the Director General or the person holding any of the offices in the Third Schedule.

Appointment of committees

) 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.

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

) 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.

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

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

) There may be paid to members of a committee such allowances out of the funds of the Board as the Board may determine after consultation with the Minister.

Delegation of powers

) Any functions delegated under this section—

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

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

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

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Power of Minister to give directions and require information

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

) 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).

) 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 subsection (1).

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Salaries, terms and conditions of service of Government employees to be taken into account

) 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.

Appointment of other employees, agents and consultants

) 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.

Discipline

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

) The disciplinary regulations made under this section—

may create disciplinary offences;

may provide for such disciplinary punishments as the Board may deem appropriate and the punishments may extend to—

a warning;

a fine;

a forfeiture of emoluments;

a deferment of salary movement;

a reduction of salary;

a reduction in rank; and

a dismissal;

shall provide for an opportunity to an employee against whom disciplinary proceedings are taken to make representations against the disciplinary charge laid against him before a decision is arrived at by the Disciplinary

Committee except in the following cases:

where an employee is dismissed or reduced in rank on the ground of misconduct in respect of which a criminal charge has been proved against him;

where the Board, on the recommendations of the

Minister charged with the responsibility for internal security, is satisfied that in the interest of the security of Malaysia or any part of Malaysia, it is not expedient to carry out the requirements of this paragraph; or

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where there has been—

made against an employee any order of detention, supervision, restricted residence, banishment or deportation; or

imposed on an employee any form of restriction or supervision by bond or otherwise, under any law relating to the security of Malaysia or any part of Malaysia, prevention of crime, preventive detention, restricted residence, banishment, immigration or protection of women and girls or the protection of children;

may provide for the interdiction with reduced emoluments of an employee during the pendency of a criminal proceeding or disciplinary proceeding against him with the view to his dismissal or reduction in rank;

may provide for the suspension without emoluments of an employee—

where the employee has been convicted by a criminal court; or

where an order of detention or restriction has been imposed on the employee; and

may provide for the procedure for the hearing of an appeal by the Disciplinary Appeal Committee established under section 18C.

Disciplinary Committees

) The following shall apply to a Disciplinary Committee:

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

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.

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

) 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 may be provided for under any disciplinary regulations made under section 18.

Disciplinary proceedings in respect of chief executive officer

) 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.

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

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Disciplinary Appeal Committee

the Chairman of the Board, who shall be the chairman of the

Disciplinary Appeal Committee and who shall have the casting vote; and

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.

) 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.

) The Disciplinary Appeal Committee may confirm, reverse, vary the decision of the Disciplinary Committee or remit the case for reconsideration to the Disciplinary Committee.

Termination of service on grounds of public interest

) 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,

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the Board may terminate the service of that employee from such date as the Board shall specify.

Recommendation by Disciplinary Committee

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

) 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.

) 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 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.

Opportunity to be heard

) 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.

Imposition of surcharge

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;

Board the collection of which he was or is responsible;

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

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

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 person and the Board, and if a satisfactory explanation is not furnished to the Board within a period specified by the Board, with regard to the failure to collect, improper payment, payment not duly vouched, deficiency or destruction, or failure to keep proper accounts or records, or failure to make payment, or delay in making payment, the Board may surcharge against the said person a sum not exceeding the amount of any such amount not collected, such payment, deficiency, or loss or the value of the property destroyed, as the case may be; and with regard to the failure to keep proper accounts or records, or the failure to make payment, or the delay in making payment, the Board may surcharge against the said person such sum as the Board may think fit.

) The Board shall cause the chief executive officer to be notified of any surcharge made under subsection (1) and the chief executive officer shall thereupon notify the person surcharged.

) The Board may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, the Board shall at once cause the chief executive officer to be notified of such withdrawal.

) The amount of any surcharge imposed under subsection (1) and not withdrawn under subsection (3) shall be a debt due to the Board from the person against whom the surcharge is imposed and may be sued for and recovered in any court at the suit of the Board and may also be recovered by deduction—

from the salary of the person surcharged if the Board so directs; or

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from the pension of the person surcharged if the Board so directs, by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension, as the case may be, of the person.

Protection from personal liability

) The Fund of the Board shall consist of—

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;

all moneys received by the Board by way of grants;

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

Board;

all moneys derived as income from investment by the Board;

all moneys borrowed by the Board under this Act; and

all other moneys lawfully received by the Board.

Annual estimates

) 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.

Power to borrow

) 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 authorized or required to make.

Investment

by depositing in—

Bank Negara Malaysia;

banks duly licensed under the Banking and Financial

Institutions Act 1989 [Act 372];

any other financial institution duly licensed under the

Banking and Financial Institutions Act 1989;

an

Islamic bank duly licensed under the

Islamic Financial Services Act 2013 [Act 759];

any other financial institution duly licensed under the

Islamic Financial Services Act 2013;

a development financial institution duly regulated under the Development Financial Institutions

Act 2002 [Act 618]; or

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a co-operative society duly registered under the

Co-operative Societies Act 1993 [Act 502];

by investing in bonds, mortgage papers, commercial notes, banker’s acceptances, money market papers, certificates of deposits and promissory notes and bills of exchange within the meaning of the Bills of Exchange Act 1949

[Act 204];

by investing in accordance with the provisions of the

Trustee Act 1949 [Act 208]:

Provided however, where the Board invests in or upon titles to immovable property in Malaysia in accordance with paragraph 4(1)(c)

of the Trustee Act 1949, such immovable property may or may not yield any income at the time of such investment.

Power to establish companies

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

Proceedings conducted by officers of the Board