Trading vs Investment: The Fine Line Between Income Tax and Capital Gains Tax for Land Disposals
The characterisation of gains from the sale of land as either income or capital gains has significant tax implications for companies. A recent tax appeal case of Director General of Inland Revenue (DGIR) v Sin Seng Bee Transport Sdn Bhd dissected this issue in detail, providing crucial guidance for businesses on establishing the proper tax […]
Should the private sector follow the special holiday declared by the state government?
Under the Employment Act 1955, Section 60D(1)(b), which applies to the private sector Peninsular Malaysia and Federal Territory of Labuan: Every employee shall be entitled to a paid holiday at his ordinary rate of pay on the following days in any one calendar year: Section 8 of the Holidays Act 1951 allows the Minister to […]
When Trading Meets Investing: Tax Implications for Companies on Land Sale Profit
The tax treatment of gains from the disposal of land has been a grey area subject to dispute between taxpayers and tax authorities. A recent income tax case of KPSB V Ketua Pengarah Hasil Dalam Negeri revolved around this issue and provides important guidance for companies on maintaining proper documentation and compliance when dealing with […]
