Fundamentals of Capital Allowances

INTRODUCTION

The claim for capital allowances is an important element in the computation of a taxpayer’s income tax liabilities. It is a rather technical aspect with many areas that are not fully understood by taxpayers or preparers of tax returns. Schedule 3 of the Income Tax Act, 1967 provides specific legislation for the capital allowances purpose. However, certain cases may be judgmental and the myriad of interpretational as well as practical issues need to be considered by preparers.
The Workshop aims to discuss in the provisions of the act as well as the rules, guidelines, and public rulings pertaining to the capital allowances in order to maximise the claim for capital allowances as well as manage the issues that could give rise to tax risks. At the end of the Workshop, the participants should be able to have a better understanding in claiming for capital allowances.

COURSE OUTLINE

• Discussion on qualifying plant and machinery

• Claim of initial and annual allowances

• Notional allowances

• Legal and beneficial ownership of assets

• Hire Purchase Transactions

• Operating and Finance Leases

• Special Rules on Controlled Transfers

• Detailed discussion on Public Rulings on Capital Allowances

• Case Studies

PROFILE(s)

Harvindar Singh is a Fellow of Chartered Association of Certified Accountants and is a member of the Malaysian Institute of Accountants (MIA) as well as the Chartered Tax Institute of Malaysia (CTIM). Harvindar was attached to the firms of PWC and E&Y as a tax consultant and is currently the Managing Partner of Harvey & Associates, a boutique firm that specialises in taxation consulting services as well as the Tax Partner in SCS Global Consulting (M) Sdn Bhd. Harvindar has more than 28 years of extensive experience in taxation advisory, transfer pricing documentation preparation, tax planning as well as tax audits and investigations and he serves as a Tax Specialist to numerous corporate entities such as SK International (M) Sdn Bhd and other MNEs and organisations. He is currently serving as the Chairman of the Editorial Board of the Budget Commentary and Tax Information Booklet which is produced jointly by MIA, CTIM and MICPA. Mr Harvindar is a Council Member of CTIM.