An Appeal, under Section 99 of the Income Tax Act, is a right available to any taxpayer who is “aggrieved in respect of an assessment made against him”. Obviously, certain conditions must first be fulfilled to pursue this entitlement. As in many dealings with Inland Revenue, making the appeal is only the beginning of a possibly long drawn-out communication which if properly managed by the taxpayer can often result in a most welcome conclusion.
The subject of Appeal is addressed in detail in Section 99 and even an entire Schedule 5. Considering the complications that could arise leading to the matter being referred to the Special Commissioners, Revenue has established Dispute Resolution Proceedings where agreement between Taxpayer and the Director General could be achieved in a less formal environment. A Public Ruling has also been issued.
A. An Appeal
1. The circumstances under which an appeal may be lodged
2. The Mode of Appeal – Form Q and the Grounds of Appeal
3. The period within which an Appeal must be submitted. When does this period commence?
4. Options available in the event of a late appeal. The role and impact of Form N
B. The Appeal Process
1. What transpires after the Appeal has been submitted to the Director General. Would the Special Commissioners be already involved once the Appeal has been lodged?
2. Can the Grounds of Appeal be changed or expanded upon even after the submission of the Form Q?
C. Payment of Tax in the interim.
1. Is the payment of the relevant still required even during the period the Appeal is being considered by the Director General?
2. The recovery enforcement measures that may be taken by Revenue.
D. Finalisation of the Appeal
1. How an agreement can be reached with the Director General. Is there a particular period set for coming to such agreement?
2. The impact of reaching an agreement with Revenue’s proposals.
3. What are the options available if the Director General’s decision is not acceptable to the taxpayer?
E. Dispute Resolution Proceedings
1. What is the role and purpose of the DRP? Who constitutes its members?
2. What are the issues that can be referred to DRP?
3. How does a taxpayer apply for DRP? How will the proceedings be carried on?
4. What are the venues from DRP proceedings?
5. Is the DRP’s determination binding on either party? Can the taxpayer choose to take his appeal to a higher level?
F. The Special Commissioners
1. Circumstances under which an Appeal can be escalated to the Special Commissioners
2. Who is authorized to represent the Taxpayer? Can he represent himself?
3. The manner under which the proceedings are conducted
4. Decision by the Special Commissioners. Can either party continue with the Appeal?
Vincent Josef began his career with the Inland Revenue Board in 1968 and over the next 35 years, he served in various Branches. Prior to his retirement, he was with the Operations Division of the Board Headquarters where he held the position of Assistant Director General. In addition, He has wide experience in lecturing at IRB events and Malaysian professional institutions including Chartered Tax Institute of Malaysia, Malaysian Institute of Accountants, CPA Australia, MAICSA and Commerce Clearing House (CCH) Malaysia. With his 50 years’ experience in the field of taxation, he also manages his own practice providing taxation consultancy services focusing on Tax Audits and Investigations. He has written a book “Tax Audit and Investigation Guide – Malaysia” published by CCH Malaysia and served as their Consultant Editor in respect of the Malaysian Master Tax Guide.