Ketua Pengarah Hasil Dalam Negeri v KIND ACTION (M) SDN BHD AMICUS CURIE BAR MALAYSIA

01f-18-05-2024j Federal Court (Mahkamah Persekutuan) 4 November 2024 • 01(f)-18-05/2024(J)

Catchwords

ADMINISTRATIVE LAW: Judicial review - Appeal - Judicial review against decision of Director General of Inland Revenue ('DGIR') - Whether the taxpayer’s application for judicial review had merit - Whether the availability of a domestic remedy under the Income Tax Act 1967 (“ITA”) precluded the taxpayer from seeking judicial review - Whether the DGIR’s decision or conduct in issuing the disputed notices was tainted with illegality - judicial review was appropriate due to the illegality of the appellant’s actions (double taxation) - the existence of an alternative remedy (appeal to the Special Commissioners of Income Tax, or SCIT) did not preclude judicial review, especially where there was clear illegality. REVENUE LAW: Income tax – finality of tax assessments - Double taxation - DGIR adopted position that proceeds from disposal of lots subject to additional income tax under s. 4(1) of ITA - DGIR issued notices of additional assessment - sought to tax the respondent under both the RPGTA and ITA - Whether there was double taxation - Whether DGIR ought to have revised and discharged assessment under RPGTA then raise taxes under ITA - Whether decision or conduct of DGIR in issuing disputed notices tainted with illegality. STATUTORY INTERPRETATION: court will not read words into a statute - if there is an ambiguity in the law, such ambiguity must be construed in favour of the taxpayer - the words in section 20(1) are clear - no reason not to give effect to the clear words of ‘final and conclusive’ in section 20(1) of the RPGTA which mean what it says -

Practice Areas

ADMINISTRATIVE LAW: Judicial review REVENUE LAW: Income tax STATUTORY INTERPRETATION: court will not read words into a statute

Judges (3)

Abu Bakar bin Jais Delivered Rhodzariah binti Bujang Coram Tengku Maimun binti Tuan Mat Delivered

Parties (3)

BAR MALAYSIA Amicus Curiae KIND ACTION Sdn Bhd Respondent Ketua Pengarah Hasil Dalam Negeri Appellant

Case Significance

Ketua Pengarah Hasil Dalam Negeri v KIND ACTION (M) SDN BHD AMICUS CURIE BAR ... is a Federal Court (Mahkamah Persekutuan) decision dated November 4, 2024 (citation: 01f-18-05-2024j). <p>The Director General of Inland Revenue appealed against the Court of Appeal's decision reversing the High Court in a dispute over double taxation under the Real Property Gains Tax Act 1976 and the Income Tax Act 1967. The Federal Court held that once tax assessments under the RPGTA were final and conclusive, the DGIR could not impose additional tax under the ITA on the same disposal proceeds, and judicial review was permissible despite the availability of an alternative remedy before the Spec The panel comprised Abu Bakar bin Jais, Rhodzariah binti Bujang and Tengku Maimun binti Tuan Mat, with Abu Bakar bin Jais delivering the judgment.

Summary

The Director General of Inland Revenue appealed against the Court of Appeal's decision reversing the High Court in a dispute over double taxation under the Real Property Gains Tax Act 1976 and the Income Tax Act 1967. The Federal Court held that once tax assessments under the RPGTA were final and conclusive, the DGIR could not impose additional tax under the ITA on the same disposal proceeds, and judicial review was permissible despite the availability of an alternative remedy before the Special Commissioners. The appeal was unanimously dismissed.

What was the outcome of Ketua Pengarah Hasil Dalam Negeri v KIND ACTION (M) SDN BHD AMICUS CURIE BAR ...?

<p>The Director General of Inland Revenue appealed against the Court of Appeal's decision reversing the High Court in a dispute over double taxation u...