*AKTA CUKAI JUALAN 2018

) This Act comes into operation on a date to be appointed by the

Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different Parts or different provisions of this Act.

) Notwithstanding subsection (2), the Minister may, by notification in the Gazette, appoint the effective date for the charging and levying of sales tax under this Act.

Interpretation

) For the purpose of this Act—

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goods shall be deemed to be under customs control whilst the goods are deposited or held in any customs warehouse or licensed warehouse, post office, or in any conveyance, pipeline or place from which the goods may not be removed except with the permission of the proper officer of sales tax;

and

goods shall be deemed to be under excise control whilst the goods are deposited or held in any distillery, brewery or other places of manufacture, or in any public excise warehouse, licensed warehouse, post office, or in any conveyance, pipeline or place from which the goods may not be removed except with the permission of the proper officer of sales tax.

Meaning of “manufacture”

in relation to goods other than petroleum, the conversion by manual or mechanical means of organic or inorganic materials into a new product by changing the size, shape, composition, nature or quality of such materials and includes the assembly of parts into a piece of machinery or other products, but does not include the installation of machinery or equipment for the purpose of construction; and

in relation to petroleum, the process of refining that includes the separation, conversion, purification and blending of refinery streams or petrochemical streams.

) If any question arises as to the meaning of “manufacture” under subsection (1), such question shall be decided by the Minister whose decision shall be final.

16 Laws of Malaysia ACT 806

) Subject to the general direction and supervision of the

Director General, a senior officer of sales tax shall have and exercise all powers conferred on the Director General by or under this Act, other than those conferred under sections 7, 41, 42 and 105.

) Any person, other than an officer of sales tax, may be appointed by, or employed with the concurrence of, the Director General for any duty or service relating to sales tax and such person shall be deemed to be an officer of sales tax for that duty or service.

) The Director General may, by authorization in writing, confer on any officer of sales tax not being a senior officer of sales tax all or any of the powers of a senior officer of sales tax for a period not exceeding ninety days in respect of any one authorization.

) Any officer of sales tax shall have the duties and powers to enforce and ensure due compliance with the provisions of this Act.

Persons appointed or employed to be public servants

) It shall not be an offence for any person to refuse to comply with any request, demand or order made by any officer of sales tax acting or purporting to act under this Act if the officer refuses to declare his office and produce his authority card or badge on demand being made by the person.

) Any person, not being an officer of sales tax, who unlawfully wears, uses, possesses or displays, otherwise than in the course of a stage play or other theatrical performance—

any uniform prescribed under section 8A of the

Customs Act 1967 or any dress having the appearance of, or bearing the distinctive marks of, such uniform; or

any prescribed authority card or badge, or authority card as approved by the Director General, referred to in subsection (1), commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Confidentiality of information

) Subject to subsection (4), every person having possession or control over any document, information, return or declaration or copies thereof in relation to the business or the sale value of the goods of any taxable person or the sale value of imported goods, who at any time, otherwise than for the purposes of this Act or with the express authority of the Director General—

communicates or attempts to communicate the information or anything contained in the document, return or declaration or copies thereof to any person; or

suffers or permits any person to have access to any information or to anything contained in the document, return or declaration or copies thereof, commits an offence.

) No person having any official duty or being appointed or employed under this Act or who is referred to in subsection (4) shall be required to produce in any matters or proceedings in any court or tribunal any document, information, return or declaration or to divulge or communicate in the matters or proceedings any matter or thing, coming under his notice in the performance of his duties under this

Act, except as may be necessary for the purposes of carrying into effect the provisions of this Act or in order to institute a prosecution or in the course of a prosecution for any offence committed under this Act.

) The Director General may, as he deems fit, transmit or communicate any document, information, return or declaration referred to in subsection (1) or anything contained therein, to the

Chief Statistician of the Department of Statistics Malaysia which may be required in the performance of his official duty.

) Notwithstanding subsection (4), the Minister may, as he deems fit, allow the Director General to transmit or communicate any document, information, return or declaration referred to in subsection (1) or anything contained therein to any other person.

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manufactured in Malaysia by a registered manufacturer and sold, used or disposed of by him; or

imported into Malaysia by any person.

) Sales tax on any importation of taxable goods into Malaysia shall be levied and payable as if it were a customs duty or an excise duty and as if the imported taxable goods are dutiable and liable to customs duty or excise duty.

) This Act shall be construed as one with the Customs Act 1967

and the Excise Act 1976 [Act 176] with regards to the importation or exportation of goods including goods in transit and the movement of goods under customs control or excise control.

) Where there is any inconsistency between the provisions of the

Customs Act 1967 or the Excise Act 1976 and the provisions of this

Act, the provisions of this Act shall prevail.

Determination of sale value of taxable goods

sold by a taxable person; or

manufactured by a taxable person and—

used by him otherwise than as materials in the manufacture of the taxable goods; or

20 Laws of Malaysia ACT 806

disposed of by him otherwise than by sale, the sale value of such taxable goods shall be determined in accordance with the regulations made under this Act.

) In the case of taxable goods imported into Malaysia, the value of the taxable goods shall be the sum of the following amounts:

the value of such taxable goods for the purpose of customs duty as determined in accordance with the Customs Act 1967;

the amount of customs duty, if any, paid or to be paid on such taxable goods; and

the amount of excise duty, if any, paid or to be paid on such taxable goods.

) Where any manufacturer receives taxable goods from any person to be manufactured and subsequently returns the goods so manufactured to such person, the sale value of the goods so manufactured shall, subject to approval of the Director General, be the amount that the manufacturer charges for work performed by him.

Rate of sales tax

) The Minister may, by order published in the Gazette—

fix the rate of sales tax to be charged and levied under this

Act; and

vary or amend the rate of sales tax fixed under paragraph (a).

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) Any order made under subsection (2) shall be laid before the

Dewan Rakyat.

) (Deleted by Act 851).

) (Deleted by Act 851).

) (Deleted by Act 851).

Sales tax due

) Notwithstanding subsection (1)—

the Minister may determine different time for sales tax to be due in respect of petroleum subject to such conditions as the

Minister deems fit; and

where any sale of taxable goods is made by any person, who is a taxable person under this Act, within the period beginning from 1 June 2018 and ending immediately before the effective date, and the taxable goods are delivered on or after the effective date—

the sale of such taxable goods shall be deemed to have been made on the date such taxable goods are delivered notwithstanding any payment, wholly or partly, is received or invoice is issued, for such taxable goods during such period;

any payment received within such period or on or after the effective date, or invoice issued within such period,

22 Laws of Malaysia ACT 806

shall be deemed to have been received or issued on the date such taxable goods are delivered; and

sales tax shall be charged and levied on such taxable goods and shall become due on the date such taxable goods are delivered.

) Where the taxable goods referred to in subparagraph (2)(b) are petroleum, the sales tax in respect of such petroleum shall be due at the time as determined under subparagraph (2)(a).

) Where any registered manufacturer who ceases to carry on business as a manufacturer is succeeded in such business by another person who—

purchases from the registered manufacturer any stock of taxable goods which is on hand at the date of cessation; or

acquires any stock of taxable goods as a trustee, receiver, liquidator, donee, or beneficiary of such registered manufacturer, no sales tax shall be due on such purchase or acquisition.

PART IIIA

IMPOSITION OF SALES TAX ON LOW VALUE GOODS

Interpretation

) Parts VIII, IX, IXA and XIII, and sections 3, 14, 15, 16, 32, 36,

37, 40, 41A, 43, 44, 45, 46, 47, 57A, 76 and 96 shall not apply to low value goods.

Territorial and extra-territorial application

) Notwithstanding subsection (1), this Part shall apply to any person, whatever his nationality or citizenship, beyond the geographical limits of Malaysia and the territorial waters of Malaysia, if the person—

is a seller; or

is registered under section 13 as a registered seller.

Display of information on package

) Subject to subsection (3), any manufacturer of taxable goods is liable to be registered at the following time, whichever is the earlier:

at the end of any month, where the total sale value of all his taxable goods in that month and the eleven months immediately preceding that month has exceeded the total sale value of taxable goods determined under subsection (1); or

at the end of any month, where there are reasonable grounds for believing that the total sale value of all his taxable goods in that month and the eleven months immediately succeeding that month will exceed the total sale value of taxable goods determined under subsection (1).

) The total sale value of all taxable goods of a manufacturer in the month and the eleven months immediately preceding that month referred to in paragraph (2)(a) shall be disregarded if—

the registration of the manufacturer is cancelled, otherwise than under subsection 19(3), during that period; and

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the Director General is satisfied that before the manufacturer’s registration is cancelled, he has given all information required by the Director General in order to determine whether to cancel the registration or not.

) Where any person succeeds any business from a registered manufacturer as specified in subsection 11(4), such person shall be deemed to be a manufacturer who is liable to be registered on the date he succeeded the business.

Application for registration

) Upon receipt of the application under subsection (1), the

Director General may approve the registration, subject to such conditions as he deems fit.

) The Director General shall register the manufacturer under subsection (1) with effect from the first day of the month following the month in which the application under subsection (1) is made or from such earlier date as may be agreed between the Director General and the manufacturer but such date shall not be earlier than the date he becomes liable to be registered.

) Where any manufacturer fails to comply with subsection (1), the

Director General shall register the manufacturer on the date as the

Director General may determine but not earlier than the date he is liable to be registered under section 12.

) Any manufacturer who fails to comply with subsection (1)

commits an offence.

26 Laws of Malaysia ACT 806

Voluntary registration

) Upon receipt of the application under subsection (1), the

Director General may approve the registration from such date as he may determine subject to such conditions as he deems fit.

Direction to treat persons as single taxable person

the persons named in that direction be treated as a single taxable person carrying on business activities described in that direction with effect from the date as specified in the direction; and

the single taxable person referred to in paragraph (a) to be registered with effect from the date as specified in the direction.

) For the purposes of subsection (1), in determining whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those business activities are closely bound to one another by financial, economic and organizational links.

) The Director General may make a direction under subsection (1)

naming any person if the Director General is satisfied that—

the person is manufacturing or has manufactured taxable goods;

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the activities in the course of which the person manufactures or has manufactured those taxable goods form only part of certain activities in the business and that the other activities in that business, whether or not that other activities are similar to the activities carried on by that person, are being carried on concurrently or previously, or both, by one or more other persons; and

if all taxable goods manufactured in that business were taken into account, the person carrying on that business would, at the time of such direction is made, be required to be registered by virtue of section 12.

) Any direction made under subsection (1) shall be served on each of the persons named in it.

) Where, after a direction had been made under subsection (1), it appears to the Director General that any person who has not been named in that direction is manufacturing taxable goods in the course of activities which should be regarded as part of the business activities, the Director General may make and serve on that person a supplementary direction adding that person’s name to those of the persons named in the direction under subsection (1).

) Upon the addition of the person’s name in the direction under subsection (5), that person shall be treated as a single taxable person carrying on the business activities described in the direction under subsection (1) with effect from the date as specified in the direction.

) Where, immediately before any direction including a supplementary direction is made, any person named in the direction has been registered in respect of taxable goods manufactured by him as specified in subsection (3) or (5), his registration shall be revoked by the Director General with effect from the date the single taxable person is registered under subsection (1).

) Upon the revocation of registration under subsection (7), the person whose registration has been revoked together with all other

28 Laws of Malaysia ACT 806

persons named in the direction under subsection (1) shall be treated as a single taxable person.

) In relation to a business specified in a direction, the persons named in such direction together with any person named in a supplementary direction relating to that business, being the persons who together are to be treated as a single taxable person, are referred to as the “constituent members” in subsections (10) and (11).

) Where any direction is made under subsection (1)—

the single taxable person carrying on the business specified in the direction shall be registered in such name as the persons named in the direction may jointly nominate by notice in writing given to the Director General not later than fourteen days after the date the direction is served on the last of such persons named in the direction or, in default of such nomination, in such name as may be specified in the direction;

any taxable goods manufactured by one of the constituent members in the course of the activities of the single taxable person shall be treated as being taxable goods manufactured by the single taxable person;

each of the constituent members shall be jointly and severally liable for any sales tax due and payable by the single taxable person;

without prejudice to paragraph (c), any failure by the single taxable person to comply with any requirement imposed under this Act shall be treated as a failure by each of the constituent members severally; and

subject to paragraphs (a) to (d), the constituent members shall be treated as a partnership carrying on the business of the single taxable person and any question as to the scope of the activities of that business at any time shall be determined accordingly.

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) Where it appears to the Director General that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (10)(c) and (d) and the Director General gives notice in writing to that effect, that person—

shall not have any liability by virtue of paragraphs (10)(c) and (d) for anything done after the date specified in that notice; and

on the date as specified in that notice, shall be treated as having ceased to be a member of the partnership referred to in paragraph (10)(e).

Registration of partnership

persons carrying on a business in a partnership as a registered manufacturer shall be in the name of the firm; and

the same persons carrying on separate businesses in a partnership as a registered manufacturer shall be in the separate names of the respective firms.

) In determining whether taxable goods are manufactured by the persons referred to in subsection (1), no account shall be taken of any change in the partnership.

) Any person who ceases to be a partner in a partnership shall—

notify the Director General in writing of the date of cessation within thirty days from the date of cessation; and

pay for the proportion of the partnership’s liability on any sales tax due and payable on any taxable goods manufactured by the partnership until the date of cessation.

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) Where any person ceases to be a partner in a partnership under subsection (3) during any taxable period, any notice, whether of assessment or otherwise, which is served on the partnership and relates to the taxable period or to any other taxable period during the whole or part of which he was a partner in the partnership, shall be deemed as to have been served also on him.

) Notwithstanding any written law to the contrary, any notice, whether of assessment or otherwise, which is addressed to a partnership by the name in which it is registered under this Act, and is served in accordance with this Act shall be deemed—

as having been properly served on the partnership; and

where subsection (4) applies, as having been properly served on any previous partner.

) Subsections (1) and (3) shall not affect the extent to which a partner is liable for sales tax owed by the firm under any other written law.

) Where a person is a partner in a firm during part only of a taxable period, his liability for sales tax on the sale of taxable goods by the firm during the taxable period shall be the proportion of the firm’s liability as may be just.

) Where any notice is required to be given by a partnership under this Act, it shall be the joint and several liability of all partners to give the notice, except that if a notice is given by any of the partners, it shall be regarded as sufficient compliance with the requirement.

) Any person who contravenes paragraph (3)(a) or (b) commits an offence.

) For the purposes of this section, a partnership excludes a limited liability partnership.

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Cessation of liability to be registered

) A registered manufacturer shall not cease to be liable to be registered by virtue of subsection (1) where the Director General is satisfied that the reason the total sale value of all his taxable goods does not exceed the total sale value of taxable goods determined under subsection 12(1) is that in the period of twelve months referred to in subsection (1) he temporarily ceases manufacturing such taxable goods, or suspends manufacturing such taxable goods for a period of thirty days or more.

Notification of cessation of liability

who ceases to manufacture taxable goods; or

who ceases to be liable to be registered under section 17, as the case may be, shall notify the Director General in writing of that fact and the date of cessation within thirty days from the date of cessation.

) Any person who contravenes subsection (1) commits an offence.

Cancellation of registration

) Where there is no notification made under section 18 and the

Director General is satisfied that a registered manufacturer has ceased to manufacture taxable goods or has ceased to be liable to be registered under section 17, the Director General may cancel his registration from the date the registered manufacturer ceased to manufacture taxable goods or ceased to be liable to be registered under section 17, as the case may be, or from such later date as the

Director General may determine.

) Where the Director General is satisfied that on the day on which a manufacturer was registered—

in the case of a manufacturer who was registered under section 13, the manufacturer was not liable to be registered under section 12 or has ceased to manufacture taxable goods; or

in the case of a manufacturer who was registered under section 14, the manufacturer was not manufacturing taxable goods or has ceased to manufacture taxable goods, the Director General may cancel the registration of the manufacturer with effect from the date as determined by the Director General in the notification in writing to such manufacturer.

) The Director General may cancel the registration of a registered manufacturer under subsection 14(2) if the registered manufacturer is in breach of any conditions imposed in relation to such registration with effect from the date of the breach or from such later date as the Director General may determine.

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) The Director General may, on the application of a registered manufacturer, cancel the registration of the registered manufacturer if the registered manufacturer has been exempted from registration pursuant to subsection 20(1).

Exemptions from registration

) Notwithstanding that any person is exempted by virtue of subsection (1), such person may apply to be registered as a registered manufacturer and the provisions of this Act shall apply to such person.

) No invoice showing an amount which purports to be sales tax shall be issued on the sale of any goods—

which are not taxable goods; or

by a person who is not a registered manufacturer.

) The amount of sales tax payable shall be collected by the registered manufacturer from the purchaser in addition to the price and any other amount due and payable by the purchaser in respect of the taxable goods.

34 Laws of Malaysia ACT 806

) Any person who contravenes subsection (1), (2) or (3) commits an offence.

Production of invoices by computer

are transmitted or made available to the purchaser by electronic means; or

are produced on any material other than paper and are delivered to the purchaser.

Credit notes and debit notes

) Notwithstanding subsection (1), the Director General may, upon request in writing by the registered manufacturer and subject to such conditions as he thinks fit to impose, approve any one or more of the prescribed particulars not to be contained on a credit note or debit note.

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Duty to keep records

all records of sales of taxable goods by or to that taxable person including invoices, receipts, debit notes and credit notes;

all records of importation and exportation of taxable goods;

and

all other records as the Director General may determine.

) Any record kept under this section shall be—

preserved for a period of seven years from the latest date to which the record relates;

in the national language or English language; and

kept in Malaysia, except as otherwise approved by the

Director General and subject to such conditions as he deems fit.

) Where the record is in an electronically readable form, the record shall be kept in such manner as to enable the record to be readily accessible and convertible into writing.

) Where the record is originally in a manual form and is subsequently converted into an electronic form, the record shall be retained in its original form prior to the conversion.

) A copy of the record shall be admissible in evidence in any proceedings to the same extent as the record itself.

) Any person who contravenes subsection (1), (2), (3) or (4)

commits an offence and shall, on conviction, be liable to a fine not

36 Laws of Malaysia ACT 806

exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Taxable period

) Notwithstanding subsection (1), the Director General may determine a different taxable period in respect of petroleum subject to such conditions as the Director General deems fit.

) A taxable person may apply in writing to the Director General for a taxable period other than the period as determined under subsection (1).

) The Director General may, upon receiving any application under subsection (3)—

allow the application and the taxable period shall be the period as applied for;

refuse the application and the taxable period shall remain as determined under subsection (1); or

vary the length of the taxable period or the date on which the taxable period begins or ends.

) The Director General may, as he deems fit, reassign the taxable person to any taxable period other than the period to which he has been previously determined under subsection (1), (2) or (4).

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Furnishing of returns and payment of sales tax due and payable

) Where a taxable period has been varied under paragraph 25(4)(c) and notwithstanding subsection (1), the return shall be furnished within thirty days from the end of the varied taxable period.

) Any registered manufacturer who ceases to be liable to be registered under section 17 or ceases to manufacture taxable goods under section 18 shall, not later than thirty days after such cessation, or such later date as the Director General may allow, furnish a return containing particulars as the Director General may determine in respect of that part of the last taxable period during which the manufacturer was registered.

) Where any registered manufacturer who ceases to carry on business as a manufacturer has in stock any taxable goods on which sales tax due and payable has not been paid and where subsection 11(4)

does not apply, such registered manufacturer shall include particulars of those goods in the return to be furnished by him for his last taxable period as if such goods had been sold by him during such taxable period, and he shall pay the sales tax accordingly.

) Any taxable person who is required to furnish a return under this section shall pay to the Director General the amount of sales tax due and payable by him in respect of the taxable period to which the return relates not later than the last day on which he is required to furnish the return.

) The return referred to in subsections (1), (2), (3) and (4) shall be furnished whether or not there is sales tax to be paid.

38 Laws of Malaysia ACT 806

) Any taxable person who—

contravenes subsection (1), (2), (3) or (4); or

furnishes an incorrect return, commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

) Where any sales tax due and payable is not paid wholly or partly by any taxable person after the last day on which it is due and payable under subsection (5) and no prosecution is instituted, the taxable person shall pay—

for the first thirty-day period that the sales tax is not paid wholly or partly after the expiry of the period specified under subsection (5), a penalty of ten per cent of the amount of sales tax which remains unpaid;

for the second thirty-day period that the sales tax is not paid wholly or partly after the expiry of the period specified under subsection (5), an additional penalty of fifteen per cent of the amount of sales tax which remains unpaid; and

for the third thirty-day period that the sales tax is not paid wholly or partly after the expiry of the period specified under subsection (5), an additional penalty of fifteen per cent of the amount of sales tax which remains unpaid.

) Any taxable person who fails to pay to the Director General the amount of sales tax due and payable under subsection (5) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

) Subject to subsection (12), prosecution for the offence under subsection (9) may be instituted after the expiry of the period specified in paragraph 8(c).

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) In addition to any fine imposed by the court under subsection (9), the court may order that any taxable person who is convicted for the offence under subsection (9) to pay the penalty as specified in subsection (8).

) No prosecution for the offence under subsection (9) shall be instituted against any taxable person who has paid the amount of sales tax due and payable, and the penalty specified under subsection (8) within the period specified in subsection (8).

Power to assess

fails to apply for registration under section 13;

fails to furnish a return under section 26; or

furnishes a return which appears to the Director General to be incomplete or incorrect, the Director General may assess to the best of his judgment the amount of sales tax due and payable, and the penalty payable under subsection 26(8), if any, by the taxable person and shall forthwith notify him of the assessment in writing.

) Where an amount has been paid to any person as being a refund of sales tax under this Act which ought not to have been paid to him, the Director General may assess the amount of the refund as being sales tax due and payable by him and shall forthwith notify him of the assessment in writing.

) The assessment under subsections (1) and (2) shall not be made more than six years from the date on which the sales tax was due and payable or from the date on which the refund of sales tax was made, as the case may be, except where in the opinion of the Director General any form of fraud or wilful default has been committed by or on behalf of any person in relation to the sales tax or refund, the Director General

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may, for the purposes of making good any loss of sales tax or payment of refund of sales tax attributable to the fraud or wilful default, make an assessment at any time.

) The proper officer of sales tax may assess the sales tax payable on any taxable goods imported by any person.

) Where any taxable person has obtained control of any taxable goods or has imported any taxable goods, the Director General may require him to account for the taxable goods.

) Where the taxable person fails to account for the taxable goods under subsection (5) by reason that—

the taxable goods have been sold by him;

the taxable goods have been exported or removed by way of sale; or

the taxable goods have been lost or destroyed, the Director General may assess to the best of his judgement the amount of sales tax that would have been chargeable in respect of the taxable goods if the goods had been sold by him and shall forthwith notify the taxable person of the assessment in writing.

) Where—

the Director General has made an assessment of sales tax under subsection (1) in respect of paragraph (1)(a) or (b);

the sales tax assessed under paragraph (a) has been paid but no return has been furnished for the taxable period to which the assessment relates; and

the taxable person fails to furnish a return for any subsequent taxable period,

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the Director General may, as he deems fit, assess an amount of sales tax greater than that which he otherwise would have considered to be appropriate.

) Where it appears to the Director General that the amount which ought to have been assessed in an assessment under subsection

), (2), (4), (6) or (7) exceeds the amount which was so assessed, he may—

under the same provision as that assessment was made; and

in the case of taxable person, within the taxable period during which that assessment could have been made, make a supplementary assessment of the amount of the excess and shall forthwith notify the person in writing accordingly.

) Where an amount of sales tax and penalty, if any, has been assessed and notified pursuant to subsection (1), (2), (6) or (8), it shall be deemed to be an amount of sales tax due and payable, and penalty payable, by the person and may be recovered accordingly and the amount of sales tax and penalty, if any, shall be paid by the person, whether or not that person appeals against the assessment, to the

Director General unless or except to the extent that the assessment has been withdrawn or reduced by the Director General.

) The Director General may make any alteration in or addition to the assessment made under this section as he deems fit to ensure the correctness of the assessment and shall forthwith notify the person in writing.

Offsetting unpaid tax against refund or drawback

any amount of sales tax due and payable, any surcharge accruing, or any penalty, fee or other money payable under this Act;

any amount of sales tax due and payable, any surcharge accruing, or any penalty or other money payable under the

*Sales Tax Act 1972 [Act 64];

any amount of service tax due and payable, any surcharge accruing, or any penalty or other money payable under the

**Service Tax Act 1975 [Act 151];

any amount of service tax due and payable, any surcharge accruing, or any penalty, fee or other money payable under the Service Tax Act 2018 [Act 807];

any amount of goods and services tax due and payable, any surcharge accruing, or any penalty or other money payable under the ***Goods and Services Tax Act 2014 [Act 762];

any amount of customs duty, or any surcharge accruing, or any penalty, fee or other money payable under the

Customs Act 1967; or

any amount of excise duty, or any surcharge accruing, or any penalty, fee or other money payable under the

Excise Act 1976, the Director General may offset, against the unpaid amount referred to in paragraphs (a), (b), (c), (d), (e), (f) and (g), any amount or any part

*NOTE—The Sales Tax Act 1972 [Act 64] has since been repealed by the Goods and Services Tax Act 2014 [Act 762] which comes into operation on 1 July 2014 and 1 April 2015—see section 178 of Act 762. Act 762 has since been repealed by the Goods and Services Tax (Repeal) Act 2018 [Act 805]. Subsequently, Act 805 has since been repealed.

**NOTE—The Service Tax Act 1975 [Act 151] has since been repealed by the Goods and Services

Tax Act 2014 [Act 762] which comes into operation on 1 July 2014 and 1 April 2015—see section 181 of Act 762. Act 762 has since been repealed by the Goods and Services Tax (Repeal) Act 2018 [Act 805]. Subsequently, Act 805 has since been repealed.

***NOTE—The Goods and Services Tax Act 2014 [Act 762] has since been repealed by the Goods and Services Tax (Repeal) Act 2018 [Act 805] which comes into operation on 1 September 2018—

see section 3 of Act 805. Subsequently, Act 805 has since been repealed.

Sales Tax 43

of any amount of refund or drawback due to that person and the

Director General shall treat the amount offset as payment or part payment received from that person.

Recovery of sales tax, etc., as civil debt

) Where an invoice shows a sale of taxable goods as having taken place with sales tax chargeable on the goods, there shall be recoverable from the person who issued the invoice an amount equals to—

that which is shown in the invoice as sales tax; or

so much of the total amount shown as payable as is to be taken as representing sales tax, if the sales tax is not separately shown in the invoice, for the sale of such taxable goods.

) Subsection (2) shall apply whether or not—

the invoice is an invoice issued under section 21 or 22;

the sale of the taxable goods shown on the invoice actually takes or has taken place or the amount shown as sales tax or any amount of sales tax is or was chargeable on the sale of the taxable goods; or

the person issuing the invoice is a registered manufacturer,

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and any amount recoverable from the person under subsection (2) shall be recoverable as such and shall otherwise be recoverable as a civil debt due to the Government.

) In any proceedings to recover the sales tax, surcharge, penalty, fee or other money under subsection (1), the production of a certificate signed by the Director General—

stating that any sales tax, surcharge, penalty, fee or other money and the amount shown in the certificate as due and payable, accruing or payable, in any return, assessment or notice made under this Act from a person named in the certificate; and

giving the address of the person and purporting to be a copy of or an extract from any notice of assessment, shall be conclusive evidence of the sales tax, surcharge, penalty, fee or other money and the amount as due and payable, accruing or payable, in any return, assessment or notice and shall be sufficient authority for the court to give judgement for that amount.

) Any penalty imposed under this Act shall, for the purposes of this Act and the Limitation Act 1953 [Act 254], the Limitation Ordinance of Sabah [Sabah Cap. 72] or the Limitation Ordinance of Sarawak [Sarawak Cap. 49], as the case may be, be recoverable as if the penalty were sales tax due and payable under this Act and accordingly subsection 6(4) of the Limitation Act 1953, section 3 of the Limitation Ordinance of

Sabah or section 3 of the Limitation Ordinance of Sarawak, as the case may be, shall not apply to that penalty.

Power to collect sales tax, etc., from person owing money to taxable person

any person by whom any money is due or accruing or may become due and payable to the taxable person;

any person who holds or may subsequently hold money for or on account of the taxable person;

any person who holds or may subsequently hold money for or on account of any other person for payment to the taxable person; or

any person having authority from any other person to pay money to the taxable person, to pay to the Director General forthwith, or within such time as the

Director General allows, such money, not being salary or wages due or accruing to the taxable person, or so much of such money as is sufficient to pay the sum due and payable, accruing or payable, by the taxable person as aforesaid.

) A copy of the notice under subsection (1) shall be forwarded to the taxable person at his last known address.

) All payments made pursuant to a notice under subsection (1)

shall be deemed to be made on behalf of the taxable person and with the authority of the taxable person and of all other persons concerned.

) For the purposes of this section, the Director General may require any person to give him information—

as to any money, fund or asset which may be held by the person for any other person; or

of any money due and payable by him to any other person.

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Recovery of sales tax before payable from persons about to leave

Malaysia

any sales tax due and payable by him under subsection 26(5);

any penalty payable by him under subsection 26(8);

any surcharge accrued by him under subsection 32(3);

any fee payable by him under this Act; or

any other money recoverable from him under this Act, the Director General may issue to the Director General of

Immigration a notice containing particulars of the person and the offence committed with a request that the person be prevented from leaving Malaysia unless he pays the sales tax, surcharge, penalty, fee or other money, or furnishes security to the satisfaction of the

Director General for its payment.

) Subject to any order issued or made under any written law for the time being in force relating to immigration, the Director General of Immigration who receives a request under subsection (1) in respect of a person shall exercise all measures which may include the removal and retention of any certificate of identity, passport,

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exit permit or other travel documents in relation to that person as may be necessary to give effect to the request.

) The Director General shall cause the notice under subsection (1) to be served personally or by registered post on the person to whom the notice relates.

) The non-receipt of the notice under subsection (1) by that person referred to in subsection (3) shall not invalidate anything done under this section.

) Where the person in respect of whom a notice has been issued under subsection (1) produces, on or after the date of the notice, a written statement signed by the Director General stating that all the sales tax, surcharge, penalty, fee or other money specified in the notice have been paid, or that security has been furnished for its payment, that statement shall be sufficient authority for allowing that person to leave Malaysia.

) No legal proceedings shall be instituted or maintained against the Federal Government, a State Government or any other public officer in respect of anything lawfully done under this section.

Payment by instalments

) Where the sales tax is allowed to be paid by instalments, the penalty under subsection 26(8) shall cease to be calculated from the date the Director General allows the payment by instalments.

) Where there is a default in payment of any instalment under subsection (1) on its due date for payment of the balance of the amount due and payable, the whole outstanding balance shall become due and payable on that date and shall, without any further notice being served on the person liable to pay the amount due, be subject to a surcharge

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equals to ten per cent of that balance and the surcharge shall be recoverable as if it were due and payable under this Act.

) Nothing in subsections (1) and (3) shall prejudice the exercise of the rights and powers under this section by the Director General to seize or sell any goods belonging to the person liable to pay such sales tax, penalty or surcharge for recovery of the amount payable under subsections (1) and (3) or any outstanding balance of the sales tax, penalty or surcharge.

Goods subject to customs or excise control not to be delivered until sales tax paid as demanded

) Notwithstanding subsection (1), any person may obtain delivery of imported taxable petroleum from the customs control or excise control whether or not any part of or all of the sales tax due and payable on such taxable petroleum have been paid.

Liability of directors, etc.

the directors of the company;

the compliance officer who is appointed amongst the partners of the limited liability partnership or if no compliance officer is appointed as such, any one or all of the partners of the limited liability partnership;

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the partners of the firm;

the office-bearers of the society; or

the persons responsible for the management of the body of persons, as the case may be, shall together with the company, limited liability partnership, firm, society or other body of persons be jointly and severally liable for the sales tax, surcharge, penalty, fee or other money.

) In relation to a company that is being wound up, the directors of the company shall only be liable where the assets of the company are insufficient to meet the amount due, after paying any sum having priority under the Companies Act 2016 [Act 777] in relation to the application of the assets of the company in the winding-up over the sales tax, surcharge, penalty, fee or other money.