Company Tax：Appeal (Part 1)
1. Section 99 of the ITA provides that a person who is aggrieved by an assessment which has been made on him for any year of assessment by the Director General of Inland Revenue (DGIR) is entitled to appeal against that assessment.
2. However, this provision shall not apply for the following cases: a)deemed assessment under subsection 90(1) of the ITA; or b)deemed assessment for amended Income Tax Return Form (ITRF) under section 91A of the ITA Unless the taxpayer disagrees with the treatment stated in PR or known stand, rules and practices of the DGIR prevailing at the time when the assessment is made. Examples of known stand, rules and practices are as follows: i.private rulings or advanced rulings; ii.guidelines by the Inland Revenue Board of Malaysia (IRBM); iii.cases that have been decided by the SCIT and the court; or iv.any other written evidence.
3. Therefore section 99 of the ITA shall only apply for appeal on notice of assessment made for any year of assessment for cases below: a)Assessmentment/additional assessment /advanced assessment which are made by the DGIR as a result of desk audit or field audit findings; or b)Best judgement assessment made without ITRF or late submission of ITRF under subsection 90(3) of the ITA
4. An appeal must be made by submitting Form Q not later than thirty (30) days after the notice of assessment has been served as provided under subsection 99(1) of the ITA.
APPEAL PROCEDURE (FORM Q)
1. The person who appeals (appellant) has to submit four (4) copies of Form Q for each year of assessment and must ensure that at least one (1) copy is an original Form Q whereas the other three (3) copies may be photocopied.
2. Form Q and attachments (if any) submitted by the appellant must not be attached with other documents. A completed Form Q with grounds of appeal must be submitted to IRBM’s branch office handling the appellant’s income tax file. Form Q can be downloaded and printed from the following link: Form Q for appeal under Income Tax Act 1967
3. A completed Form Q must contain the following informations: a)Date and amount of tax payable (Amount of tax payable refers to the notice of assessment in dispute); b)Detailed grounds of appeal containing other particulars as may be required by that form; and c)Form Q must be signed by the appellant who is the person assessed and chargeable to tax. In the case of companies and limited liability partnerships, Form Q must be signed by a person authorized under sections 75 and 75B of the ITA respectively.
4. Form Q cannot be signed by a tax agent or a lawyer.
5. Incomplete Form Q shall be returned to the appellant.
LATE APPEAL PROCEDURE (FORM N)
1. If an appeal has not been submitted within the specified period, an application for extension of time for appeal can be made by way of Form N.
2. The appellant must give a good reason in the application for extension of time. One of the reason which may be considered is circumstances beyond the control of the appellant, for example: the appellant has been hospitalised for a long period of time, absence from the country, victim of natural disaster or other acceptable and valid reasons.
3. Form N must be sent to IRBM’s branch office handling the appellant’s income tax file. The appellant must submit two (2) copies of Form N for each year of assessment and ensure that at least one (1) copy is an original Form N while the other one (1) copy may be photocopied. Form N can be downloaded and printed from the following link:
4. If the application for extension of time is allowed, the IRBM will issue Form CP15A-Pin.1/2009 informing the appellant the extended date for submission of Form Q, which is thirty (30) days from the date of CP15A.
5. If the application for extension of time is not allowed, Form N together with a statement of the reasons for rejection by the DGIR (Form CP15B) will be forwarded to the SCIT. Once Form N and the statement of the reasons are forwarded to the SCIT, the DGIR will inform the appellant in writing and shall furnish together a copy of the statement of the reasons.
6. Within twenty (21) days of receiving the notification, the appellant may make a written representation to the SCIT in respect of his application and the statement by the DGIR.
7. If the SCIT agrees to allow an extension of time, the SCIT will notify the appellant and state the date Form Q has to be submitted.
8. If the application is rejected, the appellant will be notified by the SCIT and the appellant has no right to further appeal. The decision of the SCIT is final.