Loading Events

CPD EVENTS

« All Events

Tax Consideration in Financing of Corporations

24
Sep

TIME

9:00 am - 5:00 pm

CPD POINTS

8 (S153 recognised)

EVENT CODE

24WS/030

HRDF Claimable

Yes

VENUE

Zoom Webinar

REGISTRATION FEE (RM) The registration fees are exclusive of Service Tax

CTIM Member (24WS/030)

358.33

CTIM Student (24WS/030)

358.33

Members Firm Staff (24WS/030)

414.817

Non-Member (24WS/030)

471.30

Closing Date | 20 September 2024

Tickets

The numbers below include tickets for this event already in your cart. Clicking "Get Tickets" will allow you to edit any existing attendee information as well as change ticket quantities.

INTRODUCTION

Basically, the three major sources of corporate financing are retained earnings, debt capital, and equity capital. Retained earnings is a generalized term that refers to any net income that remains after any expenses and obligations are paid off. The Malaysian Tax implication can be quite complex when it comes to corporate financing.
Debt or Equity Financing?
Both debt and equity financing can be risky. Debt financing obligates companies to repay creditors. Failure to repay can result in default or bankruptcy which can affect corporate credit scores. Interest deductibility issues revolving around deductibility, withholding tax, timing of taxability are very technical and a proper understanding of it will help participants appreciate the Malaysia tax implications.
As for equity financing, whilst companies are not obligated to repay any debts with equity financing, there are no direct tax benefits associated with equity financing. There’s also a risk of dilution of ownership since it involves adding more shareholders to the mix. Investors (new and old) may also expect a share of corporate profits.
A discussion on the features of the one-tier system and its impact on dividend distribution by Malaysia companies as well as when dividend income is received from foreign companies will be discussed in details. A comparison with the imputation system of taxation will also be done.

COURSE OUTLINE

  1. Equity vs Debt financing
  2. Loan financing and tax related issues –
    • deductibility of interest expense;
    • interest restriction
  3. Loan financing and tax related issues –
    • earning stripping rules;
    • related party loans
  4. Hybrid instruments
  5. Preference Shares / Redeemable Preference Shares
  6. Bonds, ICULS, loan stocks – taxability / deductibility of discounts or premiums and related issues
  7. 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 30 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.

New User Registration

  • This field is for validation purposes and should be left unchanged.