“Section 154 – Power To Make Rules” is read as follows:-
Section 154(1) [Minister’s]
The Minister may make rules—
(a) providing for the deduction and payment of tax at the source in respect of income from any employment and income of the kind mentioned in paragraph 4(e) and for the recovery of tax which has or should have been so deducted;
(b) prescribing, except where section 152(1) applies, anything required by this Act to be prescribed;
(c) implementing or facilitating the operation of an arrangement having effect under section 132, 132A, 132B or 132C;
(d) regulating the practice and procedure in appeals to the Special Commissioners and the Special Commissioners’ own procedure;
(e) requiring any person chargeable to tax who intends to leave Malaysia to produce a certificate that he has paid all tax and other sums due from him under this Act or that the Director General does not object to his departure, and preventing any such person from leaving Malaysia if he fails to produce such a certificate;
(ea) prescribing penalties for any contravention or failure to comply with any of the provisions of any rules made under this section:
Provided that no such penalty shall exceed the penalty prescribed under section 120;
(eb) providing for the scope and procedure applied in relation to any ruling made under section 138A or 138B, or to any arrangement under section 138C;
(ec) prescribing fees charged in relation to any ruling made under section 138B or to any arrangement made under section 138C;
(ed) implementing and facilitating the operation of sections 140A and 140C;
(f) for facilitating generally the operation of this Act.
154(2) [Procedural requirement]
Any rules made under subsection (1) shall be laid before the Dewan Rakyat.
Section 154 empowers the Minister to create rules covering various taxation-related aspects.
These rules can address matters such as the deduction and payment of tax at the source for specific types of income, recovery of deducted tax, prescription of requirements, regulation of procedures in appeals, and the implementation of arrangements specified in other sections of the Act.
Additionally, the Minister can prescribe penalties for non-compliance with these rules, with a limit defined by section 120.
The rules may also cover fees related to rulings and arrangements and the implementation of specific sections within the Act.
Once formulated, these rules must be presented before the Dewan Rakyat for procedural review.
The proposed amendment to Section 154(1) of the principal Act introduces a new provision, paragraph (ee), which focuses on implementing and facilitating the operation of Part XI on the implementation of domestic top-up tax and multinational top-up tax.
