Day: October 10, 2022

  • Absence from Work Without Leave or Approval Constitutes Misconduct

    Absence from Work Without Leave or Approval Constitutes Misconduct

    Bernas (Sarawak) Sdn. Bhd.

    v

    IL

    • Labour Department, Sibu
    • Award No. 686 Of 2000 [Case No: 8/4-659/99]
    • 9 December 2000

    The Facts

    The claimant, who began working for the company as a Fogger on June 15, 1989, was dismissed on February 11, 1999. He asserts that he was dismissed without reasonable cause or excuse and requests reinstatement.

    The company contends that the claimant was absent from work from January 26, 1999, to January 30, 1999, without leave or prior approval. In addition, he had failed to inform or attempt to inform the company of his absence.

    The claimant went to the office on February 1, 1999, to submit his application for sick leave for that day. Still, he did not submit any leave applications for January 26, 1999, through January 30, 1999.

    The claimant did not show up for work on the 2nd or 3rd of February 1999 as well.

    On February 3, 1999, in a report sent to the managers at the Unit Perhubungan Pekerja in Kuala Lumpur, the Company stated, among other things, that the claimant had been absent from work for a period of eight days without approval or leave. On the same day, a show-cause letter was issued to the claimant,

    The Claimant

    • does not deny that he was absent on January 26, 1999, to January 30, 1999.
    • however, he states that he did try to call the office to apply for leave verbally

    The Company contends that

    • They have established that the claimant was absent for seven days from 26 January 1999 to 3 February 1999

    The Law

    It is obvious that an absent workman misconducted himself if he was absent from work without a reasonable excuse or, if he had such a reasonable excuse, failed to inform or attempt to inform his employer of such excuse before or at the earliest possible opportunity during his absence.

    The Evaluation Of Evidence And Findings

    • The claimant has not shown to the court that he had any reasonable excuse for his absence,
    • The court cannot accept the claimant’s explanation that he had verbally obtained leave from an administrative clerk of the Company.
    • The court notes that in the claimant’s reply to the show cause letter, there was no mention by the claimant that he had called the office to apply for leave from January 26, 1999, to January 30, 1999.
    • What is also significant is that even if oral approval had been given, the claimant did not bother to put in a formal application for the leave after he turned up at the office on February 1, 1999.

    The court finds that the misconduct alleged against the claimant has been proved.

    The only issue is whether the punishment of dismissal is warranted.

    The Company presented documentary evidence of the claimant’s attendance records dating back to 1995 to demonstrate that the claimant had maintained a pattern of being:

    • absent from work without approval or leave from the company,
    • reporting to work late without a valid reason or excuse,
    • consistently applying for sick leave and taking emergency leave without following the proper procedures of the employer, and
    • failing to provide a valid reason or excuse for any of these behaviours.

    The Company further contended that:

    • the attendance records of the claimant had been unsatisfactory,
    • the claimant cannot be allowed to set a bad example to the other staff of the company
    • hence, the termination of the claimant is justified, and the company has acted in all fairness to the claimant and with good faith

    The Conclusion

    The court arrived at the conclusion that the disciplinary action taken by the company of dismissing the employee was appropriate in light of the facts and circumstances of this instance.

    When the company considered the claimant’s previous behaviour, they realised that the decision to dismiss the claimant was more than justified and went forward with it nevertheless.

    Award

    The claimant’s claim is dismissed. According to the court’s award, the claimant was dismissed with just cause and excuse (for reasonable and sufficient grounds).

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    20
  • Extension of Tax Incentive for Intellectual Property Development

    Extension of Tax Incentive for Intellectual Property Development

    Update: The Ismail Sabri Government Budget is no longer applicable.

    Malaysia’s national budget for 2023 was re-tabled again in February 2023; for more info, please visit – https://www.ccs-co.com/post/budget-2023-malaysia-madani.

    This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023.

    Response from MOF: MOF is currently reviewing off-budget items.

    The phrase “MOF is currently reviewing off-budget items” typically refers to the Ministry of Finance (MOF) conducting an evaluation or examination of expenses or financial matters that are not included in the official budget. Off-budget items are expenditures or revenue sources not directly accounted for in the regular budgeting process.

    Governments often create budgets to allocate funds for various programs, projects, and expenses. However, certain financial activities may fall outside the scope of the official budget. These off-budget items could include emergency spending, special funds, grants, subsidies, or other financial transactions not explicitly accounted for in the regular budgeting process.

    When the MOF reviews off-budget items, they are scrutinising these financial activities to assess their impact, legality, appropriateness, or potential risks. This review aims to ensure transparency, fiscal responsibility, and effective financial management within the government. It helps identify discrepancies, assess the necessity and effectiveness of off-budget items, and make informed decisions regarding their continuation or modification.

    Current Position

    The government proposed in Budget 2020 that qualifying intellectual property (IP)-generated income derived from the development of patents and copyright software be given a 100% income tax exemption for up to 10 years.

    In response to the proposal presented above, the Malaysian Investment Development Authority (MIDA) has published, with an effective date of January 1, 2020, the Guidelines on Incentives for Intellectual Property (IP) Development.

    For tax exemption computation, the income that qualifies for the exemption will be calculated based on the Modified Nexus Approach (MNA).

    Eligible applicants

    New/existing companies own the rights of the qualifying IPs and are receiving income from the qualifying IP activities related to the promoted activities/list prescribed under the Promotion of Investments Act 1986 (PIA) and the Income Tax Act 1967 (ITA).

    Qualifying IP asset types

    • Patent or utility innovation
    • Copyrighted software
    • Family of qualifying IPs

    Qualifying IP income types

    • Royalty
    • Licensing Fees

    Eligibility criteria

    • R&D activities must be conducted in Malaysia, where such activities lead to the development, improvement, modification or creation of the Qualifying Asset.
    • Adequate operating expenditure incurred annually to support the company in conducting its business operation in Malaysia.
    • The company must have at least 30% of science and technical staff have a degree or diploma with a minimum of five years of experience from related fields.

    Qualifying R&D expenditure

    • Eligible R&D expenditure for MNA calculation will align with the eligible expenditure types under s 34A of the ITA.
    • Includes expenditure under cost-sharing agreements, provided that the cost of payable R&D is clearly stated in the agreement.
    • Qualifying expenditure can be backdated up to three years from the date the IP is registered/filed.

    The incentive will apply to applications received by MIDA between 1 January 2020 and 31 December 2022. Three sets of the application are to be submitted to the following:

    • Chief Executive Officer
    • Malaysian Investment Development Authority (MIDA)
    • MIDA Sentral
    • No. 5, Jalan Stesen Sentral 5
    • Kuala Lumpur Sentral
    • 50470 Kuala Lumpur

    (Attention: Advanced Technology and Research & Development Division (ATRD) Division)

    Proposal [This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023]

    To further encourage R&D activities and IP registration in Malaysia, the proposed tax incentive will be extended for 3 years.

    Effective Date

    For applications received by MIDA from 1 January 2023 until 31 December 2025.

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Therefore, any reliance on such information is strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

    要获得即时更新,请与我们保持联系

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

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    6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/

    16
  • Extension of Tax Incentive for Pharmaceutical Companies

    Extension of Tax Incentive for Pharmaceutical Companies

    Update: The Ismail Sabri Government Budget is no longer applicable.

    Malaysia’s national budget for 2023 was re-tabled again in February 2023; for more info, please visit – https://www.ccs-co.com/post/budget-2023-malaysia-madani.

    This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023.

    MOF's response: Not applicable.

    Current Position

    To attract investment in Malaysia on the part of makers of pharmaceutical products, including vaccines, in particular, the COVID-19 vaccine, Manufacturer of pharmaceutical products is eligible for tax incentive as follows::

    • income tax rate of 0% up to 10%for the first 10 years; and
    • income tax rate of 10% for the subsequent 10 years.

    The tax incentives will be effective for applications received by the Malaysian Investment and Development Authority from November 7, 2020, to December 31, 2022.

    Proposal [This tax incentive included in Budget 2023, tabled in Parliament on 7 October 2022, was not included in Budget 2023 (Re-tabled) on 24 February 2023]

    To further encourage the development and manufacturing of pharmaceutical products, particularly vaccines, the proposed tax incentive is extended for 3 years.

    Effective Date

    For applications received by MIDA from January 1, 2023, until December 31. 2025.

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Therefore, any reliance on such information is strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

    要获得即时更新,请与我们保持联系

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

    4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy

    6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/

    15