Amendment of Section 120 – Other Offences

Section 120 Other Offences is read as follows:- s 120(1) Any person who, without reasonable excuse:

1. fails to comply with a notice given under section 78, 79, subsection 80(3), section 81, subsection 84(1), section 85, 87 or subsection 106A(1);
2. fails to furnish a return in accordance with subsection 83(1) or to prepare and render a statement in accordance with subsection 83(1A) or 83A(1);
3. fails to give the notice required by subsection 83(2), (3) or (4);
4. contravenes subsection 84(2), 86(1), section 89, subsection 106A(2) or 153(1);
5. fails to comply with a direction given under subsection 83(5) or section 107;
6. fails to furnish an estimate in accordance with subsection 107C(2), 107C(3) or paragraph 107C(4)(a);
7. (Deleted by Act 683 of 2007, s. 28)
8. fails to furnish the correct particulars as required by the Director General under paragraph 77(4)(b) or 77A(3)(b); or
9. fails to notify the Director General as required by subsection 21A(3A),

shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than two hundred ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both.

s 120(2) Where a person has been convicted of an offence under subsection (1), the court may make a further order that the person shall comply with the relevant provision of this Act under which the offence has been committed within thirty days, or such other period as the court deems fit, from the date the order is made. Section 120 of the legislation outlines various offences and penalties related to non-compliance with specific law provisions.

Here’s a breakdown of the key elements of Section 120:

Offences under Subsection 120(1)

Non-Compliance with Notices (a):

• Failure to comply with a notice issued under specified sections, including sections 78, 79, 80(3), 81, 84(1), 85, 87, or 106A(1).

Failure to Furnish Returns and Statements (b):

• Failure to furnish a return as per subsection 83(1) or to prepare and render a statement as per subsection 83(1A) or 83A(1).

Failure to Give Required Notices (c):

• Failure to give the notice required under subsection 83(2), (3), or (4).

Contravention of Specified Provisions (d):

• Contravention of specified subsections or sections, including 84(2), 86(1), 89, 106A(2), or 153(1).

Non-Compliance with Directions (e):

• Failure to comply with a direction issued under subsection 83(5) or section 107.

Failure to Furnish Estimates (f):

• Failure to furnish an estimate in accordance with specified subsections or paragraphs under section 107C.

Deleted Offense (g):

• The original offence under (g) has been deleted by Act 683 of 2007.

Failure to Furnish Correct Particulars (h):

• Failure to furnish correct particulars as required by the Director General under paragraph 77(4)(b) or 77A(3)(b).

Failure to Notify Director General (i):

• Failure to notify the Director General as required by subsection 21A(3A).

Subsection 120(2)

• Specifies that if a person is convicted of an offence under subsection (1), the court may make an additional order requiring the person to comply with the relevant provision of the Act within thirty days or a period deemed fit by the court.

Penalties:

• Fine or Imprisonment:
  • Persons found guilty of the offences outlined in subsection 120(1) may be liable to a fine ranging from two hundred ringgit to twenty thousand ringgit or imprisonment for a term not exceeding six months, or both.

These provisions emphasise the legal consequences for non-compliance with specific directives and requirements outlined in the legislation.

Finance (No. 2) Bill 2023

The amendment to Subsection 120(1) of the Income Tax Act 1967 in Finance (No. 2) Bill 2023 has notable tax implications.

The changes primarily focus on expanding the scope of contraventions and enhancing regulatory control.

Here are the key tax impacts:

Amendment in Paragraph (d):

Expanded Contraventions:

• The amendment substitutes paragraph (d), broadening the contraventions to include actions such as contravention of section 82B or 89 and subsections 82C(1), 82C(6), 82C(7), 84(2), 86(1), 106A(2), or 153(1).
• This implies a more comprehensive coverage of offences related to these specific sections.
• This could involve issues related to invoicing, compliance, and statutory requirements.

Amendment in Paragraph (h):

• The substitution in paragraph (h) replaces the reference to “paragraph 77(4)(b) or 77A(3)(b)” with “paragraph 77(4)(b) or subsection 77A(1B) or paragraph 77A(3)(b).”
• This suggests changes related to reporting requirements, possibly affecting the disclosure of the disposal of capital assets.

These amendments signify an effort to enhance the regulatory framework, address specific contraventions, and ensure compliance with tax-related provisions. It would be advisable for taxpayers and entities to carefully review the amended sections and seek professional advice to understand the precise tax implications and compliance requirements.