AKTA CUKAI JUALAN 1972

LAWS OF MALAYSIA

REPRINT

PUBLISHED BYTHE COMMISSIONER OF LAW REVISION, MALAYSIA

UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND

PERCETAKAN NASIONAL MALAYSIA BHD2006

Act 64

SALES TAX ACT 1972

Incorporating all amendments up to 1 January 2006

064e (A1183).fm Page 1 Friday, March 31, 2006 5:54 PM

PREPARED FOR PUBLICATION BYMALAYAN LAW JOURNAL SDN BHD

AND PRINTED BYPERCETAKAN NASIONAL MALAYSIA BERHAD

KUALA LUMPUR BRANCH2006

2

SALES TAX ACT 1972

Date of Royal Assent … … … … … 26 February 1971

Date of publication in the Gazette… … … 28 February 1971

PREVIOUS REPRINTS

First Reprint … … … … … 1993Second Reprint … … … … 1999


3

LAWS OF MALAYSIA

Act 64

ARRANGEMENT OF SECTIONS

SALES TAX ACT 1972

PART I

PRELIMINARYSection

1. Short title and application

2. Interpretation

2A. Free zone

2B. Licensed warehouse and licensed manufacturing warehouse deemedoutside Malaysia

PART II

ADMINISTRATION

3. Functions and powers of Director General and other officers

4. Officers to be public servants

5. Authority cards, etc., to be produced

PART III

CHARGE TO TAX

6. Charge to tax

7. Determination of sale value

PART IV

EXEMPTIONS AND REFUND

8. Exemptions; classes of goods

9. Materials for manufacturers to be tax free

10. Powers of Minister to exempt and refund

11. Failure to comply with condition subject to which exemption or refundwas granted


4 Laws of Malaysia ACT 64

PART V

TAXABLE PERSONS—LICENSING

Section

12. Taxable persons

12A. Direction to treat persons as a single taxable person

13. Application for licence, issue, etc.

13A. Surrender and revocation of licences

14. Exemptions from licensing

PART VI

RATES OF TAX AND COMPUTATIONOF TAX PAYABLE

15. Powers of Minister to fix the rates of sales tax by orders to be approved bythe House of Representatives

16. Computation of tax payable

PART VII

INVOICES, RECORDS, RETURNS AND ASSESSMENT

17. Invoices

17A. Production of invoices by computer

18. Duty to keep records

19. Furnishing of returns

20. Assessment of tax on goods sold or manufactured

21. Assessment of tax on goods imported

PART VIII

COLLECTION, RECOVERY, DRAWBACK,REFUND AND REMISSION

22. When taxes become due and payable

23. Sales tax to be recovered as civil debt

24. Penalty for late payment

25. Goods subject to the control of Customs not to be delivered until sales taxpaid as demanded

26. Joint and several liability of directors, etc.


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Section

27. Persons about to leave Malaysia

27A. Recovery of sales tax, etc., from persons leaving Malaysia

28. Power to collect sales tax, etc., from person owing money to taxableperson

29. Drawback

30. Payment of sales tax, etc., short paid or erroneously refunded andpayments by instalments

31. Vendor may apply for refund

31A. Application for deduction by licensed manufacturer

31B. Credit notes

31C. Refund for bad debt

31D. Repayment of refund

32. Return of sales tax or penalty overpaid or erroneously paid

33. Remission

PART IX

INSPECTION, SEARCH, SEIZURE AND ARREST

34. Persons bound to give information

35. Senior officers of sales tax may take samples

36. Access to places or premises

37. Magistrate may issue search warrant

38. When search may be made without warrant

39. Power to stop and search vehicles, vessels and aircraft

39A. Access to recorded information or computerized data

40. Seizure of goods the subject of an offence

41. Release of vehicle, vessel or aircraft under bond

42. Powers of arrest

PART X

CRIMINAL OFFENCES

43. Failure to comply with notice, etc.

43A. Evasion of sales tax



Section

44. Abetting an offence

45. Offences by corporate bodies

46. (Deleted)

PART XI

PROVISIONS AS TO TRIALS AND PROCEEDINGS

47. Sessions Court to have full jurisdiction

48. Proportional examination of goods seized to be accepted by courts

49. Evidence of analysis may be given in writing

50. Proof as to registration or licensing of vessels and conveyances inMalaysia or Singapore

51. Manner of seizure not to be enquired into on trial before court or on appealto High Court

51A. Obligation of secrecy

52. Protection of informers from discovery

53. Goods liable to seizure liable to forfeiture

54. Court to order disposal of goods seized

55. Goods seized in respect of which there is no prosecution deemed to beforfeited if not claimed within one month

56. Minister may order return of goods seized

57. Compounding of offences

58. Burden of proof

59. Conviction under other law

59A. Court order

60. No costs or damages arising from seizure to be recoverable unless seizurewithout reasonable or probable cause

60A. Protection of public officer

PART XII

REGULATIONS

61. Regulations


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PART XIII

MISCELLANEOUS

Section

62. Service of notices, etc.

63. Clerks and servants may transact business

63A. Transaction of business on behalf of taxable person

64. Licensee to furnish audit certificate

65. Rewards

66. Forms to be used

67. Power of Director General to charge fees

68. Disputes and appeals

69. Liquidator of company to give notice of winding-up, and set aside tax

70. Appointment of receiver to be notified to the Director General

71. Taxable period other than two calendar months

PART XIV

SPECIAL PROVISIONS DEALING WITH LABUAN

72. Interpretation

73. Sales tax on goods imported into or exported from Labuan, or transportedto or from Labuan, from or to the principal customs area

74. Goods manufactured in Labuan deemed to be goods manufactured outsideMalaysia

75. Transportation of goods to or from Labuan from or to the principalcustoms area

76. Declaration of goods transported from Labuan to the principal customsarea

77. Taxable goods to be deemed non-taxable while in Labuan

78. Collection of taxes in Labuan

79. Application of section 29 to goods transported to Labuan

PART XV

(Deleted)

80. (Deleted)



PART XVI

(Deleted)

Section

81. (Deleted)

82. (Deleted)

PART XVII

SPECIAL PROVISIONS DEALING WITH LANGKAWI

83. Interpretation

84. Sales tax on goods imported into or exported from Langkawi, ortransported to or from Langkawi, from or to the principal customs area

85. Goods manufactured in Langkawi to be goods manufactured outsideMalaysia

86. Transportation of goods to or from Langkawi from or to the principalcustoms area

87. Declaration of goods transported from Langkawi to the principal customsarea

88. Taxable goods to be deemed non-taxable while in Langkawi

89. Collection of taxes in Langkawi

90. Application of section 29 to goods transported to Langkawi

PART XVIIA

SPECIAL PROVISIONS DEALING WITH TIOMAN

90A. Interpretation

90B. Sales tax relating to Tioman

90C. Goods manufactured in Tioman to be deemed goods manufactured outsideMalaysia

90D. Transportation of goods from or to Tioman to or from the principalcustoms area

90E. Declaration of goods transported from Tioman to the principal customsarea

90F. Taxable goods to be deemed non-taxable while in Tioman

90G. Collection of taxes in Tioman

90H. Application of section 29 to goods transported to Tioman


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PART XVIII

SPECIAL PROVISIONS DEALING WITH PETROLEUM

Section

91. Certain provisions of the Act to apply

92. Varying the due-and-payable period and taxable period

93. Delivery of petroleum subject to customs control before payment of salestax

94. No drawback

95. Parts XIV, XVII and XVIIA not to have effect



11

LAWS OF MALAYSIA

Act 64

SALES TAX ACT 1972

An Act to make provision for the charging, levying and collectingof sales tax.

[29 February 1972, P.U.(B)72/1972]

BE IT ENACTED by the Seri Paduka Baginda Yang di-PertuanAgong with the advice and consent of the Dewan Negara andDewan Rakyat in Parliament assembled, and by the authority ofthe same, as follows:

PART I

PRELIMINARY

Short title and application

1. (1) This Act may be cited as the Sales Tax Act 1972.

(2) This Act shall apply throughout Malaysia.

(3) This Act shall not apply to the area known as the JointDevelopment Area.

Interpretation

2. In this Act, unless the context otherwise requires—

“business” includes any trade, commerce, manufacture, or anyconcern in the nature of trade, commerce or manufacture;

“calendar month” means a month reckoned according to theGregorian calendar;

“company” means a company as defined in the Companies Act1965 [Act 125], and includes a body corporate established by orunder Federal or State law and any body which the Minister mayby order declare to be a company for the purposes of this Act;



“computer” has the meaning assigned thereto in section 3 of theEvidence Act 1950 [Act 56];

“Customs” means the Royal Malaysian Customs and ExciseDepartment;

“customs control” shall have the meaning assigned to it undersubsection 2(2) of the Customs Act 1967 [Act 235];

“customs warehouse” shall have the meaning assigned to itunder subsection 2(1) of the Customs Act 1967;

“Director General” means the Director General of Customs andExcise, appointed under subsection 3(1) of the Customs Act 1967;

“document” has the meaning assigned thereto in section 3 of theEvidence Act 1950;

“electronic data interchange” means the transfer, from computerto computer, of commercial and administrative transactions usingan agreed message standard to structure the data pertaining to atransaction;

“excise control” shall have the meaning assigned to it undersubsection 2(2) of the Excise Act 1976 [Act 176];

“goods” means all kinds of movable property;

“Joint Development Area” shall have the meaning assigned to itunder section 2 of the Malaysia-Thailand Joint Authority Act1990 [Act 440];

“licensed manufacturer” means a manufacturer holding alicence for the time being in force under this Act;

“licensed warehouse” means a warehouse or other placelicensed under section 65 of the Customs Act 1967;

“manufacture” means—

(a) in relation to goods other than petroleum, theconversion by manual or mechanical means of organicor inorganic materials into a new product by changingthe size, shape or nature of such materials and includesthe assembly of parts into a piece of machinery orother products, but does not include the installation ofmachinery or equipment for the purpose of construction;and


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(b) in relation to petroleum, refining or compounding andincludes the addition of any foreign substance;

“manufacturer” means a person who engages in themanufacture of goods; and “to manufacture” has a correspondingmeaning;

“Minister” means the Federal Minister charged with theresponsibility for finance;

“officer of sales tax” means any officer of customs, as definedin subsection 2(1) of the Customs Act 1967;

“penalty” means any charge due and payable under section 24;

“person” includes an individual, a firm, a society, an association,a company and every other juridical person;

“petroleum” shall have the meaning assigned to it undersubsection 2(1) of the Customs Act 1967;

“prescribed” means prescribed by regulations made under thisAct;

“proper officer” means any officer acting in the fulfilment of hisduties under this Act, whether such duties are assigned to himspecially or generally, or expressly or by implication;

“regulations” means regulations made under section 61;

“sale” includes barter; and also includes the disposal of goodswith a right of purchase or on terms providing that the sellerretains an interest in the goods, and the delivery of goods underany condition as to future payment; and “to sell” has acorresponding meaning;

“sales tax” means the tax payable under this Act;

“senior officer of sales tax” means any senior officer of customsas defined in subsection 2(1) of the Customs Act 1967;

“surcharge” means any charge that is due and payable undersubsection 30(1B);

“taxable goods” means goods of a class or kind not for the timebeing exempted from sales tax;



“taxable period” means, subject to section 71, two calendarmonths;

“taxable person” means any person who is, or is required to be,licensed under this Act.

Free zone

2A. For the purpose of this Act, a free zone shall be deemed to bea place outside Malaysia.

In this section, the expression “free zone” has the meaningassigned to it under section 2 of the Free Zones Act 1990 [Act438].

Licensed warehouse and licensed manufacturing warehousedeemed outside Malaysia

2B. For the purpose of this Act, a licensed warehouse and alicensed manufacturing warehouse shall be deemed to be a placeoutside Malaysia.

In this section, the expression “a licensed manufacturingwarehouse” means a licensed warehouse in respect of which anadditional licence to carry on any manufacturing process has beengranted under section 65A of the Customs Act 1967.

PART IIADMINISTRATION

Functions and powers of Director General and other officers

3. (1) The Director General shall have the superintendence ofall matters relating to the sales tax, subject to the direction andcontrol of the Minister.

(2) Subject to the general direction and supervision of theDirector General, all officers of Customs and Excise appointedunder section 3 of the Customs Act 1967 and holding the rank ofSuperintendent or any rank higher than that of Superintendent,shall have and exercise all powers conferred on the DirectorGeneral by or under this Act, other than those conferred bysubsection 15(5).


Sales Tax 15

(3) It shall be the duty of any proper officer to enforce, andensure due compliance with, the provisions of this Act, and tomake all due enquiries in relation thereto.

(4) Every person employed on any duty or service relating tothe sales tax by the order or with the concurrence of the DirectorGeneral (whether previously or subsequently expressed) shall bedeemed to be the proper officer for that duty or service; and everyact required by law at any time to be done by, or with anyparticular officer nominated for such purpose, if done by or withany person appointed by the Director General to act for suchparticular officer, shall be deemed to be done by or with suchparticular officer.

Officers to be public servants

4. Every person employed on any duty or service relating to thesales tax shall be deemed to be a public servant within themeaning of the Penal Code [Act 574].

Authority cards, etc., to be produced

5. (1) Every officer when acting against any person under thisAct, shall, if not in uniform, on demand declare his office andproduce to the person against whom he is acting such badge orauthority card as he has been directed to carry under subsection9(1) of the Customs Act 1967.

(2) It shall not be an offence for any person to refuse tocomply with any request, demand or order made by any officeracting or purporting to act under this Act, if such officer is not inuniform and refuses to declare his office and produce his badge orauthority card on demand being made by such person.

PART IIICHARGE TO TAX

Charge to tax

6. Subject to this Act, sales tax shall be charged and levied onall taxable goods—

(a) manufactured in Malaysia, or acquired under section9, by a taxable person and sold, used or disposed of by



him, otherwise than by sale or disposal to a licensedmanufacturer authorized by the Director General toacquire such goods without payment of tax;

(b) imported into Malaysia by any person for homeconsumption.

Determination of sale value

7. (1) In the case of goods—

(a) sold by a taxable person; or

(b) manufactured or acquired under section 9 by a taxableperson and—

(i) used by him otherwise than as materials in themanufacture of taxable goods; or

(ii) disposed of by him otherwise than by sale,

the sale value of such goods shall be determined in accordancewith regulations made under this Act.

(2) In the case of goods imported into Malaysia for homeconsumption, the sale value of the goods shall be the sum of thefollowing amounts, namely—

(a) the value of such goods for the purpose of customsduty determined in accordance with the Customs Act1967;

(b) the amount of customs duty, if any, payable on suchgoods; and

(c) the amount of excise duty, if any, payable on suchgoods.

(3) Where goods are manufactured on behalf of any supplierof taxable goods from taxable goods supplied by him and thegoods so manufactured are returned to the supplier of the taxablegoods, then the sale value of the goods so manufactured may,subject to approval of the Director General, be the amount thatthe manufacturer charges for work performed by him.


Sales Tax 17

PART IV

EXEMPTIONS AND REFUND

Exemptions; classes of goods

8. The Minister may by order exempt, subject to such conditionsas he may deem fit to impose, any goods or class of goods fromthe whole or any part of the sales tax, or any person or class ofpersons from payment of the whole or any part of the sales tax,which otherwise would have been payable.

Materials for manufacturers to be tax free

9. (1) Where any licensed manufacturer acquires taxable goodsfrom another licensed manufacturer, such first mentionedmanufacturer may acquire such goods as may be approved by theDirector General free of sales tax provided such person isauthorized by the Director General and subject to such conditionsas may be prescribed, to acquire such goods free of sales tax.

(2) Where a licensed manufacturer imports taxable goods,such manufacturer may import such goods as may be approved bythe Director General free of sales tax provided such person isauthorized by the Director General to import such goods free ofsales tax, subject to such conditions as may be prescribed.

(3) Where a person who is not licensed imports taxable goodson behalf of and for delivery to a licensed manufacturer, suchperson may deliver such goods as may be approved by theDirector General free of sales tax provided such person isauthorized by the Director General to import such goods onbehalf of and for delivery to a licensed manufacturer free of salestax, subject to such conditions as may be prescribed.

(4) Where a person who is not licensed acquires taxable goodsfrom a licensed manufacturer on behalf of and for delivery toanother licensed manufacturer, such person may acquire anddeliver such goods as may be approved by the Director Generalfree of sales tax provided such person is authorized by theDirector General to acquire such goods from a l icensedmanufacturer on behalf of and for delivery to another licensedmanufacturer free of sales tax, subject to such conditions as maybe prescribed.



(5) Where a licensed manufacturer requires another licensedmanufacturer to complete the manufacture of taxable goods, thefirst mentioned manufacturer may acquire back such goods asmay be approved by the Director General free of sales tax,provided such manufacturer is authorized by the Director Generalto acquire back such goods free of sales tax, subject to suchconditions as may be prescribed and for the purpose of this Actsuch goods shall be construed as being manufactured by the firstmentioned manufacturer.

(6) Where a licensed manufacturer acquires taxable goodswhich are deposited or kept in a customs warehouse or awarehouse licensed under section 65 of the Customs Act 1967,such manufacturer may acquire such goods as may be approvedby the Director General free of sales tax, provided suchmanufacturer is authorized by the Director General to acquiresuch goods from a customs warehouse or licensed warehouse freeof sales tax subject to such conditions as may be prescribed.

(7) Any approval and authority granted under subsection (1),(2), (3), (4), (5) or (6) may be withdrawn at the discretion of theDirector General at any time.

Powers of Minister to exempt and refund

10. The Minister may, in any particular case, subject to suchconditions as he may deem fit to impose—

(a) exempt any person or class of persons from thepayment of the whole or any part of the sales taxwhich otherwise would have been payable by suchperson or such class of persons;

(b) direct the refund to any person or class of persons ofthe whole or any part of the sales tax paid by suchperson or such class of persons; or

(c) direct the refund to any person or class of persons ofthe whole or any part of the penalty paid by suchperson or such class of persons.

Failure to comply with condition subject to which exemptionor refund was granted

11. If—(a) any goods in respect of which an order has been made


Sales Tax 19

under section 8 are subsequently disposed of contraryto any condition to which such exemption was madesubject; or

(b) any person to whom an exemption has been granted orrefund directed under this Part fails or ceases tocomply with any condition subject to which suchexemption was granted or refund directed, as the casemay be,

then such sales tax shall be payable and any person found inpossession of such goods, or the person to whom the exemptionwas granted, or refund has been directed, shall be jointly andseverally liable to pay such sales tax.

PART VTAXABLE PERSONS—LICENSING

Taxable persons

12. Subject to this Act, sales tax shall be computed and paid by—

(a) any taxable person who carries on a business inMalaysia, whether for profit or otherwise, in respectof taxable goods manufactured by him in the course ofsuch business;

(b) any person who imports taxable goods into Malaysia,in respect of such goods.

Direction to treat persons as a single taxable person

12A. (1) Notwithstanding sections 12 and 13, where the DirectorGeneral is satisfied that any separation of business activities isartificial, he may make a direction under this section directing thatthe persons named in that direction shall be treated as a singletaxable person carrying on the activities of the business describedin that direction and that single taxable person shall not continueto carry on the activities of such business unless he is licensedwithin twenty-one days from the date the direction is served on thelast such persons of from such later date as may be specified inthat direction.

(2) For the purposes of subsection (1), in determining whetherany separation of business activities is artificial, regard shall be



had to the extent to which the different persons carrying on thosebusiness activities are closely bound to one another by financial,economic and organizational links.

(3) The Director General may make a direction under thissection naming any person if the Director General is satisfied—

(a) that the person is manufacturing or has manufacturedtaxable goods;

(b) that the activites in the course of which the personmanufactures or has manufactured those taxablegoods form only part of certain activites in thebusiness and that the other activities in that business(whether or not they are similar to the activites carriedon by that person) are being carried on concurrently orpreviously, or both, by one or more other persons; and

(c) that if all taxable goods manufactured in that businesswere taken into account, the person carrying on thatbusiness would, at the time of such direction, berequired to be licensed by virtue of section 13.

(4) Any direction made under this section shall be served oneach of the persons named in it.

(5) Where, after a direction has been given under this sectionspecifying a description of the business, it appears to the DirectorGeneral that any person who has not been named in that directionis manufacturing taxable goods in the course of activities whichshould be regarded as part of the activities of the business, theDirector General may make and serve on that person asupplementary directon referring to the earlier direction and thedescription of business specified in it, and adding that person’sname to those of the persons named in the earlier direction witheffect from—

(a) the date on which that person began to manufacturethe taxable goods; or

(b) if the date of the earlier direction was later than thedate mentioned in paragraph (a), the date with effectfrom which the single taxable person referred to in theearlier direction is licensed under subsection (1).

(6) Where, immediately before any direction (including asupplementary direction) is made under this section, any person


Sales Tax 21

named in the direction is licensed in respect of taxable goodsmanufactured by him as mentioned in subsection (3) or (5), hislicence shall be revoked by the Director General with effectfrom—

(a) the date the single taxable person is licensed undersubsection (1); or

(b) such later date as may be specified in that direction,

and upon the revocation of his licence he together with all thepersons named in the direction shall be treated as a single taxableperson under this section.

(7) In relation to a business specified in a direction under thissection, the persons named in such direction together with anyperson named in a supplementary direction relating to thatbusiness (being the persons who together are to be treated as asingle taxable person) are in subsections (8) and (9) referred to as“the constituent members”.

(8) Where any direction is made under this section, then forthe purposes of this Act—

(a) the single taxable person carrying on the businessspecified in the direction shall be licensed in suchname as the persons named in the direction mayjointly nominate by notice in writing given to theDirector General not later than fourteen days after thedate the direction is served on the last of such personsor, in default of such a nomination, in such name asmay be specified in the direction;

(b) any taxable goods manufactured by one of theconstituent members in the course of the activites ofthe single taxable person shall be treated as beingtaxable goods manufactured by the single taxableperson;

(c) each of the constituent members shall be jointly andseverally liable for any sales tax payable by the singletaxable person;

(d) without prejudice to paragraph (c), any failure by thesingle taxable person to comply with any requirementimposed by or under this Act shall be treated as afailure by each of the constituent members severally;and



(e) subject to paragraphs (a) to (d), the constituentmembers shall be treated as a partnership carrying onthe business of the single taxable person and anyquestion as to the scope of the activities of thatbusiness at any time shall be determined accordingly.

(9) Where it appears to the Director General that any personwho is one of the constituent members should no longer beregarded as such for the purposes of paragraphs (8)(c) and (d) andthe Director General gives notice to that effect, that person shallnot have any liability by virtue of those paragraphs for anythingdone after the date specified in that notice and accordingly on thatdate he shall be treated as having ceased to be a member of thepartnership referred to in paragraph (8)(e).

Application for licence, issue, etc.

13. (1) Every person who manufactures taxable goods in thecourse of business shall apply to the senior officer of sales tax inthe prescribed form to be licensed as a licensed manufacturer, andsubject to section 14, no person shall manufacture taxable goodsin the course of business unless such person is in possession of alicence issued under subsection (3).

(2) (Deleted by Act 337).

(3) Subject to subsection (4), and to being satisfied that alicence is required in the terms of paragraph 12(a) and subsection(1) of this section, the Director General shall issue a licence in theprescribed form.

(4) Before any licence is granted under this section, or wherea licence has been granted under this section, the DirectorGeneral may require the person applying for the licence, or thelicensed manufacturer, as the case may be, to give such securityfor the due compliance by that person with the provisions of thisAct and generally for the protection of the revenue as the DirectorGeneral thinks fit; and where the Director General is at any timedissatisfied with any security given, he may require a newsecurity in lieu thereof, or in addition thereto; and in default ofsuch new security being given the Director General may suspendany licence previously granted. During any such suspension theholder of any licence granted shall be deemed to be unlicensed.


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(5) Any person licensed as a manufacturer shall carry onbusiness only at the place or places specified in the licence issuedunder subsection (3).

Surrender and revocation of licences

13A. (1) If any taxable person ceases to carry on business, heshall forthwith surrender his licence to the Director General.

(2) If any taxable person ceases to carry on business as such,or dies, or being a company is dissolved, the Director Generalshall revoke the licence.

(3) If any taxable person fails to act or is found actingcontrary to sections 17, 17A, 18, 19, or subsections 22(1) and (2),the Director General may revoke the licence, and if such personcontinues to carry on the same business after such revocation, heshall be deemed to carry on the business without a licence underthis Act.

(4) Before revoking a licence under subsection (2), theDirector General shall serve a notice of revocation of the licenceon the person to whom the licence was issued and that licence isrevoked with effect from the date as specified in the notice.

(5) Before revoking a licence under subsection (3), theDirector General shall serve a notice on the person to whom thelicence was issued informing him of the proposed revocation andgiving him an opportunity to make representation on the matter.

(6) Where the Director General is satisfied, after consideringthe representation of a person made under subsection (5) that thelicence of the person should be revoked, he shall serve a notice ofrevocation of the licence on the person informing him that hislicence is revoked from the date specified in the notice.

Exemptions from licensing

14. The Minister may by order exempt, subject to such conditionsas he may deem fit to impose, any class of persons fromsubsection 13(1):

Provided that, notwithstanding that any person is exemptedunder such order, such person may apply to be licensed as a



licensed manufacturer, whereupon the provisions of this Act shallapply to such person.

PART VI

RATES OF TAX AND COMPUTATION OFTAX PAYABLE

Powers of Minister to fix the rates of sales tax by orders to beapproved by the House of Representatives

15. (1) The Minister may, from time to time, by order publishedin the Gazette, fix the rates of sales tax to be levied under this Act.

(2) Any order made under subsection (1) of this section shall,at the next meeting of the House of Representatives be laid beforesuch House and shall, at the expiration of one hundred and twentydays from being so laid or of such extended period as the Houseof Representatives may, by resolution, direct, cease to have effectif and insofar as it is not confirmed by a resolution passed by theHouse of Representatives within the said one hundred and twentydays or, if such period has been extended, within such extendedperiod.

(3) Where an order ceases to have effect in whole or in part asprovided by subsection (2) of this section, then any sales taxlevied in pursuance of such order or, as the case may be, of suchpart thereof as ceases to have effect shall, subject to subsection(4) of this section, be repayable to the person by whom such salestax was paid.

(4) Unless the Minister shall otherwise direct, no sales taxrepayable under subsection (3) of this section shall be repaid,unless the person entitled to such repayment makes a claimtherefor to the Director General within one year from the day onwhich the order ceases to have effect in whole or in part asprovided by subsection (2) of this section; and such claim shall bemade in writing and shall contain such particulars as the DirectorGeneral may, by general or special order, require.

(5) If any question arises whether any particular goods are orare not included in a class of goods appearing in an order undersubsection (1) of this section, such question shall be decided bythe Director General.


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Computation of tax payable

16. Subject to this Act, sales tax shall be levied—

(a) on the sale value at the rate in force at the time atwhich the sales tax is due; or

(b) on the quantity of goods sold, used or disposed of, orimported, at the rate in force at the time at which thesales tax is due.

PART VII

INVOICES, RECORDS, RETURNS AND ASSESSMENT

Invoices

17. (1) Every taxable person who sells any taxable goods shallissue an invoice in the national language or in English to thepurchaser in respect of the transaction, and shall state thereon theamount of sales tax payable separately to the prices for which thegoods are sold as well as the quantities of goods sold.

(2) No invoice showing an amount which purports to be salestax shall be issued on the sale of any goods—

(a) which are not taxable goods; or

(b) by a person who is not a taxable person.

(3) The amount of sales tax payable shall be recoverable bythe taxable person from the purchaser in addition to the price andany other amount due by the purchaser in respect of the goods.

(4) (Deleted by Act A782).

Production of invoices by computer

17A. (1) Subject to subsection (2), for the purposes of anyprovision under this Act in relation to an invoice, a taxable personshall be treated as having issued an invoice to a purchasernotwithstanding that there is no delivery of any equivalentdocument in paper form to the purchaser if the requisiteinformation is recorded in a computer and—



(a) is transmitted to the purchaser by electronic means; or

(b) is produced on any material other than paper and isdelivered to the purchaser.

(2) No provision in relation to computer invoice shall betreated as having been complied with unless the taxable personand the purchaser—

(a) have obtained the Director General’s approval inwriting—

(i) to transmit the document by electronic means,or to produce the document by means of acomputer on any material other than paper andto deliver that document; or

(ii) to receive the document through thattransmission or delivery,

subject to such conditions as he may deem fit toimpose; and

(b) comply with such requirements as may be determinedby the Director General.

Duty to keep records

18. (1) Every taxable person shall, in accordance withregulations made under this Act, keep full and true records writtenup to date of all transactions which affect or may affect hisliability to sales tax.

(2) The records which are required to be kept in accordancewith this section shall be preserved for a period of six years fromthe latest date to which such records relate.

Furnishing of returns

19. (1) Every taxable person shall within twenty-eight daysafter the end of each taxable period deliver to the proper officer areturn in the prescribed form setting forth the aggregate amount ofthe sale value of all taxable goods sold by him during that period,the amount of sales tax payable on those goods, and such other


Sales Tax 27

particulars as may be prescribed or as may be required by theDirector General; and the return shall be verified by declaration inthe prescribed form.

(2) The Director General may, at his discretion, permit anylicensed manufacturer to deliver the return required undersubsection (1) at any interval longer than one taxable period butin no case shall any such interval be longer than six consecutivetaxable periods.

(3) Any permission granted under subsection (2) may bewithdrawn by the Director General at his discretion at any timewhereupon a return, covering the period from the beginning of thefirst consecutive taxable period for which a return has not beendelivered to the end of the taxable period in which the permissionis withdrawn, is to be delivered within twenty-eight days of theend of such period and thereafter subsection (1) will apply.

Assessment of tax on goods sold or manufactured

20. (1) Any return furnished under section 19 may be acceptedby the proper officer as sufficient proof of the matters thereincontained, and sales tax may be assessed by the proper officeraccordingly.

(2) If the proper officer has reason to believe that the amountof sales tax shown in a return made by any taxable person undersection 19 as payable on any goods is less than the amountpayable under this Act, he may assess the sales tax at such greateramount as he deems fit and a notice in writing of such amountshall be served on such person.

(3) If the proper officer has reason to believe that sales tax ispayable on any goods under paragraph 6(a) by any person whohas not made a return in respect thereof, he may assess the salestax at such amount as he deems fit and a notice in writing of suchamount shall be served on such person.

Assessment of tax on goods imported

21. The sales tax payable on any goods under paragraph 6(b)shall be assessed by the proper officer.



PART VIII

COLLECTION, RECOVERY, DRAWBACK,REFUND AND REMISSION

When taxes become due and payable

22. (1) The sales tax chargeable under paragraph 6(a) shall bedue at the time the taxable goods are sold, disposed of otherwisethan by sale or first used otherwise than as material in themanufacture of taxable goods, by the taxable person.

(2) Any sales tax chargeable under paragraph 6(a) which fallsdue during any taxable period shall be payable within twenty-eight days from the expiration of that taxable period.

(3) Any sales tax chargeable under paragraph 6(b) shall be dueand payable—

(a) in the case of goods cleared for home consumptiondirectly at the port of importation, or goods entered forremoval to an inland station, and there cleared forhome consumption, at the time of final Customsclearance;

(b) in the case of goods removed to a customs warehouseor a licensed warehouse subsequent to importation, atthe time of final clearance from such warehouse forhome consumption.

(4) Where any taxable person who ceases to carry on businessas a manufacturer is succeeded in such business by a personwho—

(a) purchases from him any stock of taxable goods whichis on hand at the date of cessation, or

(b) acquires such stock as a trustee, or receiver, orliquidator or donee, or beneficiary on the decease ofsuch taxable person,

no sales tax shall be due on such purchase or acquisition, but suchperson shall be deemed to be a taxable person and required to belicensed under section 13 in relation to such goods for thepurposes of this Act.


Sales Tax 29

(5) Where any taxable person who ceases to carry on businessas a manufacturer has in stock any taxable goods on which salestax has not been paid and where subsection (4) does not apply,such person shall include particulars of those goods in the returnto be furnished by him for his last taxable period as if such goodshad been sold by him during such taxable period, and he shall paysales tax thereon accordingly.

Sales tax to be recovered as civil debt

23. (1) Without prejudice to any other remedy, any sales tax dueand payable and any penalty or surcharge accruing under this Act,may be recovered by the Minister as a civil debt due to theGovernment.

(2) In any suit to recover the sales tax, penalty, or surcharge,if any, under subsection (1), the production of a certificate signedby the Director General giving the name and address of thetaxable person and the amount of sales tax, penalty or surcharge,if any, due by him shall be sufficient authority for the Court togive judgment for the same amount.

(3) Any penalty or surcharge imposed under this Act shall, forthe purposes of this Act and the Limitation Act 1953 [Act 254],the Limitation Ordinance of Sabah [Sabah Cap. 72] or theLimitation Ordinance of Sarawak [Swk. Cap 49], as the case maybe, be recoverable as if it were sales tax due and payable underthis Act and accordingly subsection 6(4) of the Limitation Act1953, section 3 of the Limitation Ordinance of Sabah or section 3of the Limitation Ordinance of Sarawak, as the case may require,shall not apply to that penalty or surcharge.

(4) Where an invoice shows a sale of taxable goods as havingtaken place with sales tax chargeable on the goods, there shall berecoverable from the taxable person who issued the invoice anamount equal to—

(a) that which is shown in the invoice as sales tax; or

(b) so much of the total amount shown as payable as is tobe taken as representing sales tax, if sales tax is notseparately shown in the invoice,

for the sale of such taxable goods.



(5) Subsection (4) shall also apply where—(a) the invoice, in which is stated an amount which

purports to be sales tax as chargeable, is not an invoiceissued under section 17 or 17A;

(b) the invoice was issued by a person who was not ataxable person and who had sold either taxable goodsor non-taxable goods for which an amount whichpurports to be sales tax was chargeable; or

(c) the invoice was issued by a taxable person who hadsold non-taxable goods for which an amount whichpurports to be sales tax was chargeable,

and any amount which purports to be sales tax shall be paidimmediately by that person and in default of payment, may berecovered as a civil debt due to the Government.

Penalty for late payment

24. Where any amount of sales tax remains unpaid after the lastday on which it was payable under subsection 22(2) or repayableunder section 31D, as the case may be —

(a) a penalty equal to ten per cent of such unpaid amountshall thereupon be payable;

*(b) if the sales tax due and payable remains unpaid formore than thirty days after the last day on which it wasso payable or repayable the rate of penalty underparagraph (a) on such unpaid sales tax shall be increasedby ten per cent for the second period of thirty daysafter such last day and for every succeeding period ofthirty days or part thereof during which such amountremains unpaid to a maximum of fifty per cent.

Goods subject to the control of Customs not to be delivereduntil sales tax paid as demanded

25. In the case of imported taxable goods, no person shall beentitled to obtain delivery of such goods from the control of the

*NOTE—Previously “two per cent” – see Sales Tax (Amendment) Act 1999 [ActA1058].


Sales Tax 31

Customs until the sum assessed by the proper officer by way ofsales tax on those goods has been paid in full.

Joint and several liability of directors, etc.

26. Where any sales tax, penalty or surcharge is due and payableby—

(a) a company;(b) a firm; or(c) a society, an association or other body of persons,

then notwithstanding anything to the contrary in this Act or in anyother Act, the directors of such company including persons whowere directors of such company, or the partners of such firms,including any persons who were partners of such firm, or themembers of such society, association or other body of persons,including any persons who were members of such society,association or other body of persons, during such taxable period,as the case may be, shall together with such company, firm,society, association or other body of persons, be jointly andseverally liable for the sales tax, penalty or surcharge payable:

Provided that in relation to a company that is being wound up,the directors of such company shall only be so liable where theassets of the company are insufficient to meet the amount due,after paying any sums having priority under the Companies Act1965 in relation to the application of the assets of the company insuch winding up over the sales tax, penalty or surcharge.

Persons about to leave Malaysia

27. If the Director General has reason to believe that a taxableperson is about to leave Malaysia before any sales tax due by himbecomes payable in accordance with the provisions of this Act, thesales tax shall, if the Director General deems fit, be payable onsuch earlier date as the Director General determines and, if thewhereabouts of the taxable person are known to the DirectorGeneral, the taxable person shall be notified accordingly.

Recovery of sales tax, etc., from persons leaving Malaysia

27A. (1) Where the Director General has reason to believe thatany person is about or is likely to leave Malaysia withoutpaying—



(a) any sales tax payable by him;

(b) any penalty payable by him under section 24;

(c) any surcharge payable by him under subsection30(1B); or

(d) any other moneys recoverable from him under thisAct,

he may issue to any director of Immigration a certificatecontaining particulars of the sales tax, penalty, surcharge or othermoneys so payable with a request that such person be preventedfrom leaving Malaysia unless and until he pays the sales tax,penalty, surcharge or other moneys so payable, or furnishessecurity to the satisfaction of the Director General for theirpayment.

(2) Subject to any order issued or made under any written lawfor the time being in force relating to banishment or immigration,any Director of Immigration who receives a request undersubsection (1) in respect of a person shall exercise all measureswhich may include the removal and retention of any certificate ofidentity, passport, exit permit or other travel documents inrelation to that person as may be necessary to give effect to therequest.

(3) The Director General shall cause a notice of the issue of acertificate under subsection (1) to be served personally or byregistered post on the person to whom the certificate relates:

Provided that the non-receipt of the notice by that person shallnot invalidate anything done under this section.

(4) Where the person in respect of whom a certificate has beenissued under subsection (1) produces on or after the date of thecertificate a written statement signed by the Director Generalstating that all the sales tax, penalty, surcharge or other moneysspecified in the certificate have been paid, or that security hasbeen furnished for its payment, that statement shall be sufficientauthority for allowing that person to leave Malaysia.

(5) No legal proceedings shall be instituted or maintainedagainst the Government, a State Government or any other publicofficer in respect of anything lawfully done under this section.


Sales Tax 33

(6) In this section, “Director of Immigration” means anyDirector of Immigration appointed under subsection 3(1A) of theImmigration Act 1959/1963 [Act 155].

Power to collect sales tax, etc., from person owing money totaxable person

28. (1) Where any sum by way of sales tax, penalty or surchargeis due and payable by a taxable person, the Director General may,by notice in writing (a copy of which shall be forwarded to thetaxable person at his last known place of address) require—

(a) any person by whom any money is due or accruing ormay become due to the taxable person;

(b) any person who holds or may subsequently holdmoney for or on account of the taxable person;

(c) any person who holds or may subsequently holdmoney on account of some other person for paymentto the taxable person; or

(d) any person having authority from some other person topay money to the taxable person,

to pay to him forthwith, or within such time as the DirectorGeneral allows, such money (not being salary or wages due oraccruing due to the taxable person) or so much thereof as issufficient to pay the sum due and payable by the taxable person asaforesaid.

(2) All payments made pursuant to a notice under this sectionshall be deemed to be made on behalf of the taxable person andwith the authority of the taxable person and of all other personsconcerned.

Drawback

29. Drawback of the full amount of sales tax paid in respect ofgoods which are subsequently exported from Malaysia may,subject to regulations made under this Act, be allowed.



Payment of sales tax, etc., short paid or erroneously refundedand payments by instalments

30. (1) Where—

(a) the whole or any part of any sales tax, penalty or othermoneys payable under this Act has not been paid; or

(b) the whole or any part of any sales tax, penalty or othermoneys after having been paid, has been erroneouslyrefunded,

then, provided a demand is made within three years from the dateon which the sales tax, penalty or other moneys were payable, ordeficient sales tax, penalty or other moneys were paid, or therefund was made, as the case may be, the person—

(aa) liable to pay—

(i) the sales tax, penalty or other moneys; or

(ii) the deficient sales tax, penalty or othermoneys; or

(bb) to whom the refund was erroneously made,

shall pay the sales tax, penalty or other moneys, or the deficientsales tax, penalty or other moneys, or repay the refund erroneouslypaid to him.

(1AA) Without prejudice to subsection (1), any goodsbelonging to the person referred to in subsection (1) which maybe in Excise or Customs control or at a place or places specifiedin the licence issued under section 13 may be seized until thesales tax, penalty or other moneys, or the deficient sales tax,penalty or other moneys, are paid, or the refund erroneously paidto him is repaid.

(1A) The Director General may allow the sales tax or penaltyreferred to in subsection (1) to be paid by instalments, under suchcircumstances as may be prescribed by regulations made underthis Act, in such amounts and on such dates as he may determine;and where the amount of sales tax is allowed to be paid byinstalments under this subsection, paragraph 24(b) shall not be


Sales Tax 35

applicable to such amount as from the date the Director Generalallows such payment by instalments.

(1B) If there is a default in payment of any one instalmentunder subsection (1A) on its due date for payment of the balanceof amount payable then the whole outstanding balance shallbecome due and payable on that date and shall, without anyfurther notice being served on the person liable to pay the amountdue, be subject to a surcharge equal to ten per cent of that balanceand the surcharge shall be recoverable as if it were due andpayable under this Act.

(1C) Nothing in subsections (1A) and (1B) shall prejudice theexercise of the rights and power under this section by the DirectorGeneral to seize or sell any goods belonging to the person liableto pay such sales tax, penalty or other moneys for recovery of theamount payable under subsections (1) and (1B) or any outstandingbalance thereof.

(2) Should the sales tax, penalty or other moneys ordeficiency, or the refund to be repaid remain unpaid, as the casemay be, the Director General may after giving not less than 30days’ notice in writing to the owner or his agent (if the name andaddress of such owner or agent is known to him) or after duenotice in the Gazette (if the name and address of such owner oragent is not known to him) sell such goods.

(3) The proceeds of the sale of any such goods shall beapplied to the payment of the sales tax, penalty and other moneysor recovery of the amount due or other charges which may be duein respect of selling off such goods, and the surplus if any, shallbe paid to the owner of such goods and if the owner cannot befound within one month of the sale, such surplus shall be paid tothe Consolidated Fund.

(4) If at the sale of any such goods no sufficient bid isforthcoming to defray the sales tax, penalty or any other moneyspayable or deficient sales tax, penalty or other moneys payable orthe refund erroneously paid, as the case may be, the goods shallbe forfeited to the Government and shall be disposed of in suchmanner as the Director General may direct.

(5) Every auction sales shall under this section be conductedby or in the presence of a senior officer of sales tax.



Vendor may apply for refund

31. Subject to such conditions as may be prescribed, where anylicensed manufacturer acquires from a person goods, in respect ofwhich sales tax has previously been paid, the vendor may apply tothe Director General for a refund of the sales tax so paid in respectof the goods to which the transaction relates, provided suchmanufacturer holds the approval and authorization of the DirectorGeneral to acquire such goods free of sales tax; and where theDirector General is satisfied that the prescribed conditions havebeen complied with, he shall refund the vendor the amount of salestax previously paid by such person in respect of such goods:

Provided that no such refund shall be allowed unless a claim inrespect thereof is made within one year after the date of thetransaction to which the claim relates.

Application for deduction by licensed manufacturer

31A. (1) A licensed manufacturer may apply to the DirectorGeneral, in the return furnished by him in accordance with section19, for the deduction of such amount of sales tax paid in respectof goods purchased by him during the taxable period to which thereturn relates.

(2) The Director General shall allow the deduction appliedunder subsection (1) subject to such conditions as may beprescribed.

Credit notes

31B. A licensed manufacturer in a return furnished by him inaccordance with section 19 may deduct, in accordance with theregulations made under this Act, the amount of sales tax paid inrespect of taxable goods returned by a purchaser or discountssubsequently given to the purchaser, from the amount of sales taxaccounted for in the return:

Provided that the licensed manufacturer has issued to thepurchaser a credit note containing the requisite particulars.

Refund for bad debt

31C. (1) Any person who is or has ceased to be a taxable personmay make a claim to the Director General for a refund of the


Sales Tax 37

whole or any part of any sales tax paid by him in respect of taxablegoods if—

(a) the sales tax has been paid by such person on or after1 January 2003;

(b) the whole or any part of the sales tax payable to suchperson has been written off in his accounts as baddebts; and

(c) the Director General is satisfied that all reasonableefforts have been made by such person to recover thesales tax.

(2) Where the person mentioned in subsection (1)—

(a) has not received any payment in respect of the sale oftaxable goods, such person may make a claim for thewhole of the sales tax paid; or

(b) has received any payment in respect of the taxablegoods, such person may make a claim for thedifference between the sales tax paid and amountcalculated in accordance with the following formula:

A × C___

B

where A is the payment received in respect ofthe sale of such taxable goods;

B is the sale value of such taxable goodsplus sales tax payable on such goods;and

C is the sales tax payable on such goods.

(3) The person mentioned in subsection (1) may make a claimfor the refund within six years from the date the sales tax is paidby him.

(4) For the purpose of this section, “bad debt” means theoutstanding amount of the payment in respect of the sale oftaxable goods including the sales tax which is due to the personbut has not been paid to, and is irrecoverable by the person.



Repayment of refund

31D. Where a refund of sales tax has been made under section 31Cby the Director General to a person and any payment in respect ofthe sale of taxable goods for which the sales tax is payable issubsequently received by the person, the person shall repay to theDirector General an amount calculated in accordance with thefollowing formula:

A × C___

B

where A is the payment received in respect ofthe sale of such taxable goods;

B is the sale value of such taxable goodsplus sales tax payable on such goods;and

C is the sales tax payable on such goods.

Return of sales tax or penalty overpaid or erroneously paid

32. It shall be lawful for the Director General, if it is proved tohis satisfaction that any sales tax or penalty has been overpaid orerroneously paid under this Act, to order the refund of the sales taxor penalty that was overpaid or erroneously paid subject to suchlimit as may be prescribed by regulations made under this Act:

Provided that—

(a) no such refund shall be allowed unless a claim inrespect of it is made in the prescribed form within oneyear after the overpayment or erroneous payment wasmade; and

(b) the Director General may reduce or altogetherdisallow any refund due under this section to theextent that the refund would unjustly enrich theclaimant.


Sales Tax 39

Remission

33. The Minister may, if he thinks it just and equitable to do so,and subject to such conditions as he may deem fit to impose, remitthe whole or any part of any sales tax due and payable under thisAct, or the whole or any part of any penalty payable under section24.

PART IXINSPECTION, SEARCH, SEIZURE AND ARREST

Persons bound to give information

34. (1) Every person having information about any matter intowhich it is the duty of the proper officer to inquire shall, uponbeing required by him to do so, give such information.

(2) Every person required by the proper officer to produce adocument or other thing which is within the power of such personto produce, and which is a document or thing required under thisAct or a document or thing used in any transaction or other matterrelating to sales tax or a document or thing into which it is theduty of the proper officer to inquire under this Act, shall producesuch document or thing.

Senior officers of sales tax may take samples

35. (1) Any senior officer of sales tax may at any time, if hisduties so require, take samples of any goods to ascertain whetherthey are goods of a description liable to sales tax, or to ascertainthe sales tax payable on such goods, or for such other purposes ashe may deem necessary, and such samples may be disposed of insuch manner as he may direct.

(2) No payment shall be made for any sample taken undersubsection (1), but the proper officer shall give a receipt of anysuch sample.

Access to places or premises

36. (1) Any senior officer of sales tax shall for the purposes ofthis Act at all times have access to any place or premises where amanufacturer or importer carries on his business.



(2) Where any senior officer of sales tax enters upon anypremises in accordance with this section, then—

(a) he may require the manufacturer or importer, as thecase may be, to produce any book, document, or thing,which such manufacturer or importer is required tokeep under the provisions of this Act, or which relateto any taxable goods;

(b) he may examine any book, document or thing and takecopies of any book or document;

(c) he may seize and detain any book, document or thing,if in his opinion it may afford evidence of thecommission of any offence under this Act;

(d) he may require any manufacturer or importer or anyperson employed by such person or importer to answerquestions relating to any book, document or thing, orto any entry in any book, document, or to any taxablegoods;

(e) he may require any container, envelope, or otherreceptacle, in any such premises to be opened;

(f) he may at the risk and expense of the manufacturer orimporter, open and examine any package, or anygoods or materials, in any such premises;

(g) he may take and retain without payment such samplesof any goods or materials as he may think necessaryfor the performance of his duties.

(2A) (Deleted by Act A1110).

(2B) (Deleted by Act A1110).

(3) Where the senior officer of sales tax acting under thissection is unable to obtain free access to any premises where amanufacturer or importer carries on his business or to anyreceptacle contained therein, he may, at any time, enter suchpremises, and open such receptacle, in such manner, if necessaryby force, as he may think necessary.

(4) Where, on the entry upon any premises under theprovisions of this section, any taxable goods are found in relation


Sales Tax 41

to which any offence under the provisions of this Act has beencommitted, then such taxable goods shall be liable to forfeiture.

Magistrate may issue search warrant

37. (1) Whenever it appears to any Magistrate, upon writteninformation upon oath and after any inquiry which he may thinknecessary, that there is reasonable cause to believe that in anydwelling house, shop, or other building or place, or on board anyvessel or any aircraft, there are concealed or deposited any goods,books, documents or thing which may afford evidence of anoffence against this Act, such Magistrate may issue a warrantauthorizing any officer of sales tax named therein, at any time, andwith or without assistance—

(a) to enter such dwelling house, shop or other building orplace, vessel, or aircraft and there to search for andseize any such goods, books, documents or things;

(b) to arrest any person being in such dwelling house,shop or other building, place, vessel or aircraft inwhose possession such goods are found or who mayreasonably be suspected as having concealed ordeposited such goods.

(2) The officer authorized in accordance with subsection (1)may if it is necessary so to do—

(a) break open any outer or inner door of such dwellinghouse, shop or building, place, vessel or aircraft andenter every part thereof, if necessary forcibly;

(b) remove by force any obstruction to such entry tosearch or to seize as he is empowered to effect;

(c) detain every person found in such dwelling house,shop or building, place, vessel or aircraft until thesearch has been completed.

When search may be made without warrant

38. Whenever it appears to the senior officer of sales tax thatthere is reasonable cause to believe that in any dwelling house,shop or other building, place, vessel or aircraft there are concealed



or deposited any goods, books, documents or things which mayafford evidence of an offence against this Act, and if he hasreasonable grounds for believing that by reason of the delay inobtaining a search warrant such goods, books, documents, orthings are likely to be removed, he may exercise in, upon and inrespect of such dwelling house, or shop or other building, place,vessel or aircraft all the powers mentioned in section 37 in thesame manner as if he were empowered so to do by a warrant issuedunder that section.

Power to stop and search vehicles, vessels and aircraft

39. (1) The proper officer may stop and examine any vehicle,vessel or aircraft for the purpose of ascertaining whether anygoods in respect of which he has reason to believe that an offenceagainst this Act has been committed are contained therein; and theperson in control or in charge of such vehicle, vessel or aircraftshall, if required so to do by the proper officer, stop the same andallow the proper officer to examine it or move it to another placefor search, and shall not proceed until permission to do so hasbeen given by the proper officer.

(2) The person in control or in charge of any vehicle, vessel oraircraft examined under this section shall on request by the properofficer open all parts of it for examination by the proper officerand take all measures necessary to enable such examination as theproper officer considers necessary to be made.

Access to recorded information or computerized data

39A. (1) Any senior officer of sales tax exercising his powersunder sections 36, 37, 38 and 39 shall be given access to anyrecorded information or computerized data, whether stored in acomputer or otherwise.

(2) In addition, a senior officer of sales tax exercising hispowers under sections 36, 37, 38 and 39—

(a) may inspect and check the operation of any computerand any associated apparatus or material which he hasreasonable cause to suspect is or has been used inconnection with that information or data; and


Sales Tax 43

(b) may require—(i) the person by whom or on whose behalf the

senior officer of sales tax has reasonable causeto suspect the computer is or has been so used;or

(ii) the person having charge of, or is otherwiseconcerned with, the operation of the computer,apparatus or material,

to provide him with such reasonable assistance as hemay require for the purposes of this section.

(3) For the purposes of subsection (1), “access” includesbeing provided with the necessary password, encryption code,decryption code, software or hardware and any other meansrequired to enable comprehension of recorded information orcomputerized data.

Seizure of goods the subject of an offence

40. (1) All goods, books, documents or things in respect ofwhich the proper officer has reasonable cause to suspect that therehas been committed any offence against this Act, or any violationof any of the provisions of this Act or of any condition subject towhich any licence or permit has been granted under this Act, andany receptacle, package, vehicle, vessel not exceeding 200 tonsnet registered tonnage, or aircraft in which such goods may befound or which has been used in connection with such offence orviolation, and any books or documents which may reasonably bebelieved to have a bearing on the case, may be seized by the properofficer.

(2) Whenever any goods, receptacle, package, vehicles,vessels or aircraft are seized under this Act, the proper officershall forthwith give notice in writing of such seizure and thegrounds thereof to the owner of such goods, vehicles, vessels oraircraft, if known, either by delivering such notice to himpersonally or by post at his place of abode, if known:

Provided that such notice shall not be required to be givenwhere such seizure is made on the person or in the presence of theoffender or the owner or his agent or, in the case of a vessel or anaircraft, in the presence of the master or pilot thereof, as the casemay be.



(3) The provisions of this section relating to the seizure of—

(a) any goods shall apply to all the contents of anypackage or receptacle in which the same are found,and to any article used to conceal the same;

(b) any vessel or aircraft shall apply also to the tackle,equipment and furnishings of such vessel or aircraft;

(c) any vehicle shall apply also to all equipment thereof,and if an animal drawn vehicle, to any animal, bywhich the same is drawn.

(4) Any goods of a perishable nature, or any animals seizedunder the provisions of this section, may forthwith be sold and theproceeds of the sale held to abide the result of any prosecution orclaim.

Release of vehicle, vessel or aircraft under bond

41. When any vehicle, vessel or aircraft has been seized underthis Act, the senior officer of sales tax may, at his discretion,temporarily return such vehicle, vessel or aircraft to its ownerupon security being furnished to the satisfaction of the seniorofficer of sales tax that the vehicle, vessel or aircraft shall besurrendered to him upon demand.

Powers of arrest

42. (1) Any officer of sales tax may arrest without warrant—

(a) any person found committing or attempting tocommit, or employing or aiding any person to commit,or abetting the commission of, an offence against thisAct;

(b) any person whom he may reasonably suspect to havein his possession any goods liable to seizure under thisAct;

(c) any person whom he may reasonably suspect to havecommitted an offence against this Act,

and such officer of sales tax may search or cause to be searchedany person so arrested:


Sales Tax 45

Provided that—

(a) any person who requests that his person be searched inthe presence of a senior officer of sales tax shall notbe searched except in the presence of and under thesupervision of such officer, but such person may bedetained until the arrival of such officer, or taken toany office or police station where such officer may befound;

(b) the goods and baggage of any person who requests tobe present when they are searched and so presentshimself within a reasonable time shall not be searchedexcept in his presence;

(c) no female shall be searched except by another femalewith strict regard to decency.

(2) Every person arrested under this section shall be taken to apolice station or detained in the custody of the proper officer.

(3) If any person liable to arrest under this Act is not arrestedat the time of committing the offence for which he is so liable, orafter arrest makes his escape, he may at any time thereafter bearrested and dealt with as if he had been arrested at the time ofcommitting such offence.

(4) Any senior officer of sales tax may cause to be takenphotographs and finger and thumb impressions of any personcharged with an offence against this Act.

(5) Every person so arrested may be released from custody—

(a) on his depositing such reasonable sum of money as theproper officer may require;

(b) on his executing a bond with such surety or sureties,as the proper officer may require; or

(c) on his depositing such reasonable sum of money as theproper officer may require and his executing a bond,with such surety or sureties, as the proper officer mayrequire.

(6) Any person who has been released from custody undersubsection (5) may be arrested without warrant by any officer ofsales tax—



(a) if such officer has reasonable grounds for believingthat any condition on or subject to which such personwas released or otherwise admitted to bail has been oris likely to be breached; or

(b) on being notified in writing by the surety of suchperson that such person is likely to breach anycondition on or subject to which such person wasreleased and that the surety wishes to be relieved ofhis obligation as surety.

PART X

CRIMINAL OFFENCES

Failure to comply with notice, etc.

43. Without prejudice to any other liability incurred under thisAct, any person who—

(a) fails or refuses to comply with the requirements ofsection 12, 12A, 13, 17, 17A, 18, 19, 22, or 28;

(b) carries on business at any place or premises notspecified in the licence issued under section 13;

(c) fails or refuses to produce any book or document forthe examination or retention by the proper officer inaccordance with the requirements of this Act;

(d) fails or refuses to give correct information or refusesto give any information which he is required to giverelating to sales tax;

(e) pays a lesser amount of sales tax than is required bythis Act;

(ea) contravenes subsection 63A(2);

(f) in any way obstructs any proper officer in thedischarge of his functions under this Act; or

(g) contrary to subsection 17(2), issues an invoiceshowing an amount which purports to be sales tax,


Sales Tax 47

shall be guilty of an offence against this Act, and such person shallbe liable to imprisonment for a term not exceeding twelve monthsor to a fine not exceeding five thousand ringgit or to both.

Evasion of sales tax

43A. (1) Any person who wilfully with intent to evade or to assistany other person to evade sales tax—

(a) omits from a return made under this Act or anyregulations made under this Act any information inrelation to any matter affecting the amount of his orthe other person’s chargeability to sales tax;

(b) makes any false statement or entry in any return, claimor application made under this Act or any regulationsmade under this Act;

(c) gives any false answer, whether verbally or in writing,to any question or request for information asked ormade in pursuance of this Act or any regulations madeunder this Act;

(d) prepares, maintains or authorizes the preparation ormaintenance of any false book of accounts, falseinvoices or other false records, or falsifies orauthorizes the falsification of any book of accounts,invoices or records; or

(e) makes use or authorizes the use of any fraud, art orcontrivance,

shall be guilty of an offence against this Act and such person shallbe liable to a fine not exceeding fifty thousand ringgit or toimprisonment for a term not exceeding three years or to both.

(2) Where in any proceedings under this section it is provedthat a false statement or false entry (whether by omission orotherwise) has been made in a return, claim or applicationfurnished under this Act or any regulations made under this Actby or on behalf of any person, or in any books of accounts,invoices or other records maintained by or on behalf of anyperson, that person shall be presumed, until the contrary is



proved, to have made that false statement or entry with intent toevade sales tax.

(3) A reference in this section to a person who makes use ofany fraud, art or contrivance, or authorizes the use of any fraud,art or contrivance to evade sales tax includes a reference to aperson who, without the authority of the Director General—

(a) destroys, damages, erases or otherwise manipulatesthe data stored in, or used in connection with, acomputer;

(b) introduces into or records or stores in a computer, byany means, data for the purpose of—

(i) destroying, damaging, erasing or altering otherdata stored in that computer; or

(ii) interfering with, interrupting or obstructing thelawful use of that computer, or the data storedin that computer; or

(c) otherwise uses a computer,

the purpose or effect of which is to evade sales tax.

(4) For the purposes of subsection (3), “data” includes anycomputer program or part of a computer program being a programapproved by the Director General for use under section 17A or 18,or any regulations made under this Act.

Abetting an offence

44. Where any person—

(a) aids, abets, assists, incites or induces any other personto make or makes on behalf of another person anincorrect return, account, statement or declarationresulting in a short payment of sales tax by the personliable for its payment; or

(b) aids, abets, assists, incites or induces any other personto commit an offence under section 43,


Sales Tax 49

such first-mentioned person shall be guilty of an offence againstthis Act and shall be liable to a fine not exceeding five thousandringgit or to imprisonment for a term not exceeding twelve monthsor to both.

Offences by corporate bodies

45. (1) Where an offence against this Act or any regulationmade thereunder has been committed by a company, a firm, asociety, an association or other body of persons, any person whoat the time of the commission of the offence was a director,manager, secretary or other similar officer or a partner of thecompany, firm, society, association or other body of persons orwas purporting to act in such capacity shall be deemed to be guiltyof that offence unless he proves that the offence was committedwithout his consent or connivance and that he exercised all suchdiligence to prevent the commission of the offence as he ought tohave exercised, having regard to the nature of his functions in thatcapacity and to all the circumstances.

(2) Where any person would be liable under this Act to anypunishment, penalty or forfeiture for any act, omission, neglect ordefault he shall be liable to the same punishment, penalty orforfeiture for every such act, omission, neglect or default of anyclerk, servant or agent, or of the clerk or servant of such agentprovided that such act, omission, neglect or default wascommitted by such clerk, or servant in the course of hisemployment or by such agent when acting on behalf of suchperson or by the clerk or servant of such agent when acting in thecourse of his employment in such circumstances that had suchact, omission, neglect or default been committed by the agent hisprincipal would have been liable under this section.

46. (Deleted by Act A1110).

PART XI

PROVISIONS AS TO TRIALS AND PROCEEDINGS

Sessions Court to have full jurisdiction

47. Notwithstanding the provisions of any written law to thecontrary, a Sessions Court shall have jurisdiction to try anyoffence under this Act and to impose punishment under this Actfor any such offence.



Proportional examination of goods seized to be accepted bycourts

48. (1) When any goods suspected of being taxable goods orotherwise liable to seizure have been seized, it shall be sufficientto open and examine five per centum only of each description ofthe package or receptacle in which such goods are contained.

(2) If it is necessary to test any goods seized under this Act, itshall be sufficient to test only a sample not exceeding five percentum in volume or weight of the goods examined undersubsection (1).

(3) The court shall presume that the goods contained in theunopened packages or receptacles are of the same nature, quantityand quality as those found in the similar packages or receptacleswhich have been opened.

Evidence of analysis may be given in writing

49. (1) In any prosecution under this Act, a certificate ofanalysis under the hand of an analyst shall, on production thereofby the prosecutor, be sufficient evidence of the facts stated thereinunless the defendant requires that the analyst be called as awitness, in which case he shall give notice thereof to theprosecutor not less than ten days before the day on which thesummons is returnable; and in like manner a certificate of analysisunder the hand of an analyst shall, on production thereof by thedefendant, be sufficient evidence of the facts stated therein, unlessthe prosecutor requires that the analyst be called as a witness.

(2) A copy of the certificate referred to in subsection (1) shallbe sent to the defendant or the prosecutor, as the case may be, atleast ten days before the day fixed for the hearing of thesummons, and if it is not so sent the court may adjourn thehearing on such terms as it may think proper.

(3) In this section “analyst” means—

(a) a person employed as a Chemist in the Department ofChemistry, or as a Chemist or an Assistant Chemist atthe Institute for Medical Research;

(b) the Senior Chemist, Department of Agriculture;


Sales Tax 51

(c) a person employed as a Chemist, or a Geologist in theGeological Survey Department; and

(d) any other person or class of persons who is or aredeclared by the Minister charged with responsibilityfor chemistry, by notification in the Gazette, to be ananalyst or analysts for the purposes of this section.

(4) If an analyst is called by the defendant as provided bysubsection (1) of this section, he shall be called at the expense ofthe defendant unless the court otherwise directs.

(5) If in any trial or proceedings under this Act it is necessaryto determine the alcoholic content of any liquor, the certificate ofthe proper officer as to such alcoholic content shall be accepted asif the proper officer were an analyst and in any such casesubsections (1) and (4) of this section shall apply in the samemanner and to the same extent as if the proper officer were ananalyst.

Proof as to registration or licensing of vessels and conveyancesin Malaysia or Singapore

50. Where in any prosecution under this Act it is relevant toascertain particulars as to the registration or licensing of anyvessel or conveyance registered or licensed in any port or place inMalaysia or in Singapore, a certificate purporting to be signed bythe officer responsible under any written law for the time being inforce in Malaysia or any part thereof or in Singapore for suchregistration or licensing shall be prima facie evidence as to allparticulars concerning such registration or licensing containedtherein, and the burden of proving the incorrectness of anyparticulars stated in such certificate shall be on the person denyingthe same.

Manner of seizure not to be enquired into on trial before courtor on appeal to High Court

51. On any trial before any court and in any proceedings onappeal in the High Court, relating to the seizure of goods subjectto forfeiture under this Act, the court shall proceed to such trialor hear such appeal on the merits of the case only, withoutenquiring into the manner or form of making any seizure, except



insofar as the manner and form of seizure may be evidence of suchmerits.

Obligation of secrecy

51A. (1) Except as provided under section 52, the name andaddress of an informer and the substance of the informationreceived from an informer shall be kept secret and shall not bedisclosed by any proper officer or any person who in the ordinarycourse of his duties comes into possession of or has control of oraccess to such information to any person except the designatedofficer of sales tax authorized by the Director General.

(2) Any person who fails to comply with subsection (1) shallbe guilty of an offence against this Act and shall be liable to afine not exceeding ten thousand ringgit or to imprisonment for aterm not exceeding five years or to both.

Protection of informers from discovery

52. (1) Except as hereinafter provided, no witness in any civil orcriminal proceedings under this Act shall be obliged or permittedto disclose the name or address of an informer, or the substance ofthe information received from him, or state any matter whichmight lead to his discovery.

(2) Subject to subsection (3), if any books, documents orpapers, which are produced in evidence or liable to inspection inany civil or criminal proceeding under this Act, contain any entryin which any informer is named or described or which might leadto his discovery, the court shall cause all such passages to beconcealed from view or to be obliterated, but only to the extentnecessary to protect the informer from discovery.

(3) If on trial for any offence under this Act, the court, afterfull enquiry into the case, believes, that the informer wilfullymade in his complaint a material statement which he knew to befalse or did not believe to be true, or if in any other proceedingthe court is of opinion that justice cannot fully be done betweenthe parties thereto without the discovery of the informer, it shallbe lawful for the court to require the production of the originalcomplaint, if in writing, and permit enquiry and require fulldisclosure concerning the informer.


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Goods liable to seizure liable to forfeiture

53. (1) All goods liable to seizure under the provisions of thisAct shall be liable to forfeiture.

(2) For the purpose of this section and of sections 54, 55, 56,58 and 60 the word “goods” shall be deemed to includereceptacles, conveyances, vessels and aircraft.

(3) All things forfeited shall be delivered to the DirectorGeneral and shall be disposed of in accordance with hisdirections.

Court to order disposal of goods seized

54. (1) An order for the forfeiture or for the release of anythingliable to forfeiture under the provisions of this Act shall be madeby the court before which a prosecution with regard thereto hasbeen held.

(2) An order for the forfeiture of goods shall be made if it isproved to the satisfaction of the court that an offence against thisAct has been committed and that the goods were the subjectmatter of, or were used in the commission of, the offence,notwithstanding that no person may have been convicted of suchoffence.

Goods seized in respect of which there is no prosecutiondeemed to be forfeited if not claimed within one month

55. (1) Where no prosecution is initiated with regard to anygoods seized under this Act, such goods shall be deemed to beforfeited at the expiration of one calender month from the date ofseizures unless claim thereto is made before that date in themanner hereinafter set forth.

(2) Any person asserting that he is the owner of such goodsand that they are not liable to forfeiture may personally, or by hisagent authorized in writing in that behalf, give written notice to asenior officer of sales tax that he claims the same.

(3) On receipt of such notice the senior officer of sales taxshall refer the claim to the Director General who may direct thatsuch goods be released or may direct such senior officer of sales



tax, by information in the prescribed form, to refer the matter tothe Sessions Court Judge for his decision.

(4) The Sessions Court Judge shall issue a summons requiringthe person asserting that he is the owner of the goods and theperson from whom they were seized to appear before him, andupon their appearance or default to appear, due service of suchsummons being proved, the Sessions Court Judge shall proceed tothe examination of the matter and on proof that an offence againstthis Act has been committed and that such goods were the subjectmatter, or were used in the commission, of such offence shallorder the same to be forfeited, or may in the absence of suchproof order their release.

(5) In any proceedings under subsection (4) of this section,section 58 shall apply to the person asserting that he is the ownerof the goods and to the person from whom they were seized as ifsuch owner or person had been the defendant in a prosecutionunder this Act.

Minister may order return of goods seized

56. (1) The owner or any person having a beneficial interest inany goods seized may, before the expiration of one calendarmonth from the date of the forfeiture of such goods, or from thedate on which such goods shall be deemed to be forfeited, as thecase may be, make application to the Minister for the return ofsuch goods.

(2) Subsequent to any application made in accordance withsubsection (1), the Minister may order any goods seized underthis Act, whether forfeited or not, to be delivered to the owner orother person entitled thereto, upon such terms and conditions ashe may deem fit.

Compounding of offences

*57. (1) Any senior officer of sales tax may compound anyoffence, which is prescribed to be a compoundable offence, byaccepting from the person reasonably suspected of having

*NOTE—Previously “one thousand ringgit” – see Sales Tax (Amendment) Act 1999 [ActA1058].


Sales Tax 55

committed such offence a sum of money not exceeding fivethousand ringgit.

(2) On payment of such sum of money the person reasonablysuspected of having committed an offence, if in custody, shall bedischarged, and any goods seized shall be released and no furtherproceedings shall be taken against such person or goods.

Burden of proof

58. If in any prosecution in respect of any goods seized for non-payment of sales tax or for any cause of forfeiture or for therecovery of any penalty or penalties under this Act, any disputearises whether sales tax has been paid in respect of such goods orwhether anything is exempt from sales tax, then and in every suchcase the burden of proof thereof shall lie on the defendant in suchprosecution.

Conviction under other law

59. Nothing contained in this Act shall prevent the prosecution,conviction and punishment of any person according to theprovisions of any other written law for the time being in force inMalaysia or in any part thereof:

Provided that no person shall be punished more than once forthe same offence.

Court order

59A. Where any person is found guilty of an offence under section43 or 43A, the court before which that person is found guilty shallorder that person to pay to the Director General the amount ofsales tax due and payable, or any penalty payable under this Act,if any, as certified by the Director General and such sales tax orpenalty shall be recoverable in the same manner as a fine asprovided under section 283 of the Criminal Procedure Code [Act593].

No costs or damages arising from seizure to be recoverableunless seizure without reasonable or probable cause

60. No person shall in any proceedings before any court inrespect of the seizure of any goods seized in exercise or the



purported exercise of any power conferred under this Act, beentitled to the costs of such proceedings or to any damages orother relief other than an order for the return of such goods or thepayment of their value unless such seizure was made withoutreasonable or probable cause.

Protection of public officer

60A. Nothing done by a public officer in the course of his dutiesshall be deemed to be an offence under this Act.

PART XII

REGULATIONS

Regulations

61. The Minister may make regulations to prescribe and regulate—

(a) the issue of licences;

(b) the place at which the sales tax is to be paid andcollected;

(ba) the production of invoices by computer;

(bb) all matters in regard to credit notes;

(c) the remission at the discretion of the Director Generalof small amounts of sales tax;

(d) the forms to be used under and for purposes connectedwith this Act;

(da) all matters relating to bad debts for the purposes ofthis Act;

(db) the determination of value for the purposes ofsubsection 7(1);

(e) anything required or permitted in this Act to beprescribed or regulated; and

(f) generally to give effect to the provisions of this Act.


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PART XIII

MISCELLANEOUS

Service of notices, etc.

62. (1) Every notice, direction or other document required bythis Act to be served on any person may be served—

(a) personally upon that person; or

(b) by sending it to that person by registered post.

(2) A notice, direction or other document sent by registeredpost to a person shall be deemed to have been served on thatperson at the time at which it would have been delivered to thatperson in the ordinary course of the post if such notice, directionor other document was addressed—

(a) in the case of a company, a firm, a society, anassociation or other body of persons—

(i) to its registered office;(ii) to its last known address; or

(iii) to any person authorized by it to accept serviceof process; and

(b) in the case of an individual, to his last known address.

Clerks and servants may transact business

63. The clerks or servants of any person may transact businessgenerally with any proper officer on behalf of such person:

Provided that an officer may refuse to transact business withsuch clerk or servant unless such person identifies such clerk orservant to such officer as empowered to transact.

Transaction of business on behalf of taxable person

63A. (1) Subject to section 63, no person shall transact anybusiness in relation to this Act on behalf of any taxable person,except on matters with regard to—

(a) refund;



(b) remission;

(c) exemption; or

(d) any other matters as approved by the Director General.

(2) The person who transacts business on any of the mattersstated in subsection (1) on behalf of a taxable person shall—

(a) produce a letter of authorization from the taxableperson whom he represents; and

(b) where any prescribed form is required to be submittedfor the purposes of the matters being transacted,submit the form that has been signed by the taxableperson, except where otherwise allowed by a seniorofficer of customs.

Licensee to furnish audit certificate

64. The Director General may require a licensee to submitannually an audit certificate, signed by a public accountant not inthe employment of the licensee, in relation to the books andrecords required to be kept by the licensee under the provisions ofthis Act in respect of the licensee’s production and sale of taxablegoods manufactured by him.

Rewards

65. The Director General may order such rewards as he maydeem fit to be paid to any officer or other person for servicesrendered in connection with the detection of any offences againstthis Act.

Forms to be used

66. Where any forms have been prescribed under section 61 noperson shall, for the purposes of this Act, use any form which isnot printed or issued by authority of the Director General:

Provided that the Director General may, at his discretion, andsubject to such conditions as he may deem fit to impose, permitany person to use forms which are not so printed or issued as


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aforesaid, or permit the use of any form submitted through anelectronic data interchange.

Power of Director General to charge fees

67. The Director General may charge such fee as he may considerreasonable in respect of any act or service done or rendered by himor any officer and which is not required to be done or renderedunder this Act and for which no fee is prescribed by any writtenlaw.

Disputes and appeals

68. (1) Where any person disputes the decision of a properofficer acting in the course of duty under section 3 he may appealtherefrom to the Director General, whose decision on such disputeshall, subject to subsection (2), be final.

(2) Any person aggrieved by a decision of the DirectorGeneral may within thirty days after being notified of suchdecision—

(a) in cases relating to the refund of sales tax undersection 31C, appeal to the court; or

(b) in other cases and matters, appeal to the Minister,whose decision shall be final and not be subject toreview in any court.

Liquidator of company to give notice of winding-up, and setaside tax

69. (1) Where after the passing of this Act an effectiveresolution is passed or an order is made for the winding-up of acompany which is a licensed manufacturer or importer theliquidator of the company shall give notice thereof to the DirectorGeneral within fourteen days thereafter, and shall beforedisposing of any of the assets of the Company set aside such sumout of the assets as appears to the Director General to be sufficientto provide for any sales tax that is or will thereafter becomepayable in respect of the company, and shall pay such sales tax.



(2) A liquidator of any such company who fails to give noticeto the Director General within the time specified in subsection (1)or fails to provide for payment of the sales tax as required by thatsubsection shall be personally liable for any sales tax that is orbecomes payable as aforesaid.

(2A) Any liquidator who fails to comply with subsection (1)shall be guilty of an offence against this Act and shall be liable toa fine not exceeding ten thousand ringgit.

(3) Where two or more persons are appointed liquidators orare required by law to carry out the winding-up of any suchcompany the obligations and liabilities attaching to a liquidatorunder this section shall attach to all such persons jointly andseverally, subject to a right of contribution between themselves asin cases of contract.

Appointment of receiver to be notified to the Director General

70. (1) Where a receiver is appointed of the property of alicensed manufacturer or importer the receiver shall give noticethereof to the Director General within fourteen days thereafter,and shall before disposing of any of the assets of the licensedmanufacturer or importer set aside such sum out of the assets asappears to the Director General to be sufficient to provide for anysales tax that is or will thereafter become payable in respect of thegoods that have been sold or manufactured by the licensedmanufacturer or importer before the appointment of the receiver, andshall pay such sales tax.

(2) A person appointed as receiver who fails to give notice tothe Director General within the time specified in subsection (1) orfails to provide for payment of the sales tax as required by thatsubsection shall be personally liable for any sales tax that is orbecomes payable as aforesaid.

(2A) Any receiver who fails to comply with subsection (1)shall be guilty of an offence against this Act and shall be liable toa fine not exceeding ten thousand ringgit.

(3) Where two or more persons are appointed receivers theobligations and liabilities attaching to a receiver under thissection shall attach to all such persons jointly and severally,


Sales Tax 61

subject to a right of contribution between themselves as in casesof contract.

Taxable period other than two calendar months

71. For the purpose of this Act returns may be accepted by theproper officer for any taxable period not being a calendar month,and in the application of section 19 the term “taxable period” shallmean such accounting period, and the last day of that accountingperiod shall be deemed to be the end of a taxable period.

PART XIV

SPECIAL PROVISIONS DEALING WITH LABUAN

Interpretation

72. In this Part, unless the context otherwise requires—

“Labuan” means the Island of Labuan and its dependent islandsviz. Rusukan Besar, Rusukan Kecil, Keraman, Burong, Papan andDaat;

“principal customs area” means Malaysia exclusive of Labuan,Langkawi and Tioman.

Sales tax on goods imported into or exported from Labuan, ortransported to or from Labuan, from or to the principalcustoms area

73. Notwithstanding anything to the contrary contained in thisAct—

(a) no sales tax shall be payable upon any taxable goodsimported into Labuan or transported to Labuan fromthe principal customs area other than any taxablegoods which the Minister may from time to timedeclare by order published in the Gazette;

(b) sales tax shall be payable upon all taxable goodstransported to the principal customs area from Labuanto all intents as if such transportation to the principalcustoms area were importation into Malaysia;



(c) the sale value of goods liable to sales tax inaccordance with paragraph (b) shall be determined inaccordance with subsection 7(2).

Goods manufactured in Labuan deemed to be goodsmanufactured outside Malaysia

74. For the purpose of this Act goods manufactured in Labuan aredeemed to be goods manufactured outside Malaysia.

Transportation of goods to or from Labuan from or to theprincipal customs area

75. Where goods are transported—

(a) from Labuan to the principal customs area; or

(b) from the principal customs area to Labuan,

the provisions of this Act shall, with such modifications andadaptations as may be necessary, apply as if such goods wereimported into, or as the case may be, exported from, the principalcustoms area from or to a place outside Malaysia, and withoutprejudice to the above generality, Part IX shall apply to goodstransported to or from Labuan from or to the principal customsarea and to persons and vessels and aircraft transporting suchgoods as if Labuan were a place outside Malaysia.

Declaration of goods transported from Labuan to theprincipal customs area

76. The person in charge of any vessel or aircraft on which goodsare transported from Labuan to the principal customs area shallmake a declaration substantially in the form as prescribed underthe Customs Act 1967 or under any other laws in force for the timebeing giving particulars of the goods transported in such vessel oraircraft.

Taxable goods to be deemed non-taxable while in Labuan

77. Any taxable goods, shall, while in Labuan, be deemed to benon-taxable and the provisions of this Act shall be construedaccordingly:


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Provided that the foregoing shall not apply in respect of anygoods declared by the Minister to be taxable on importation intoLabuan.

Collection of taxes in Labuan

78. In making regulations under section 61 of the Act, theMinister may provide—

(a) for the collection in Labuan of sales tax payable inrespect of goods transported or about to be transportedfrom or to Labuan to or from the principal customsarea;

(b) for the limitation or restriction of vessels and aircraftwhich may be used to transport such goods; and

(c) for the licensing or control of persons or vessels oraircraft transporting such goods.

Application of section 29 to goods transported to Labuan

79. Section 29 shall apply to goods (other than any goodsdeclared by the Minister to be taxable on importation into Labuan)transported from the principal customs area to Labuan as if suchgoods had been exported or re-exported, as the case may be.

PART XV

80. (Deleted by Act 293).

PART XVI



PART XVII

SPECIAL PROVISIONS DEALING WITH LANGKAWI

Interpretation

83. In this Part, unless the context otherwise requires—



“Langkawi” means Langkawi Island and all adjacent islandslying nearer to Langkawi Island than to the mainland;

“principal customs area” means Malaysia exclusive of Labuan,Langkawi and Tioman.

Sales tax on goods imported into or exported from Langkawi,or transported to or from Langkawi, from or to the principalcustoms area

84. Notwithstanding anything to the contrary contained in thisAct, no sales tax shall be payable upon any taxable goodsimported into Langkawi or transported to Langkawi from theprincipal customs area other than such taxable goods, which theMinister may from time to time declare by order published in theGazette.

Goods manufactured in Langkawi to be goods manufacturedoutside Malaysia

85. For the purpose of this Act goods manufactured in Langkawiare deemed to be goods manufactured outside Malaysia.

Transportation of goods to or from Langkawi from or to theprincipal customs area

86. Where goods are transported—

(a) from Langkawi to the principal customs area; or

(b) from the principal customs area to Langkawi,

the provisions of this Act shall, with such modifications andadaptations as may be necessary, apply as if such goods wereimported into, or as the case may be, exported from, the principalcustoms area from or to a place outside Malaysia, and withoutprejudice to the above generality, Part IX shall apply to goodstransported to or from Langkawi from or to the principal customsarea and to persons and vessels and aircraft transporting suchgoods as if Langkawi were a place outside Malaysia.


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Declaration of goods transported from Langkawi to theprincipal customs area

87. The person in charge of any vessel or aircraft on which goodsare transported from Langkawi to the principal customs area shallmake a declaration substantially in the form as prescribed underthe Customs Act 1967 or under any other laws in force for the timebeing giving particulars of the goods transported in such vessel oraircraft.

Taxable goods to be deemed non-taxable while in Langkawi

88. Any taxable goods, shall while in Langkawi, be deemed to benon-taxable and the provisions of this Act shall be construedaccordingly:

Provided that the foregoing shall not apply in respect of anygoods declared by the Minister to be taxable on importation intoLangkawi.

Collection of taxes in Langkawi

89. In making regulations under section 61 of the Act, theMinister may provide—

(a) for the collection in Langkawi of sales tax payable inrespect of goods transported or about to be transportedfrom or to Langkawi to or from the principal customsarea;



Application of section 29 to goods transported to Langkawi

90. Section 29 shall apply to goods (other than any goodsdeclared by the Minister to be taxable on importation intoLangkawi) transported from the principal customs area toLangkawi as if such goods had been exported or re-exported, asthe case may be.



PART XVIIA

SPECIAL PROVISIONS DEALING WITH TIOMAN

Interpretation

90A. In this Part, unless the context otherwise requires—“Tioman” means the Island of Tioman and the islands of Soyak,

Rengis, Tumok, Tulai, Chebeh, Labas, Sepoi and Jahat;“principal customs area” means Malaysia exclusive of Labuan,

Langkawi and Tioman.

Sales tax relating to Tioman

90B. Notwithstanding anything to the contrary contained in thisAct, no sales tax shall be payable upon any taxable goodsimported into Tioman or transported to Tioman from the principalcustoms area other than such taxable goods, which the Ministermay from time to time declare by order published in the Gazette.

Goods manufactured in Tioman to be deemed goodsmanufactured outside Malaysia

90C. For the purpose of this Act, goods manufactured in Tiomanare deemed to be goods manufactured outside Malaysia.

Transportation of goods from or to Tioman to or from theprincipal customs area

90D. Where goods are transported—

(a) from Tioman to the principal customs area; or

(b) from the principal customs area to Tioman,

the provisions of this Act shall, with such modifications andadaptations as may be necessary, apply as if such goods wereimported into, or as the case may be, exported from, the principalcustoms area from or to a place outside Malaysia, and withoutprejudice to the above generality, Part IX shall apply to goodstransported to or from Tioman from or to the principal customsarea and to persons and vehicles, vessels and aircraft transportingsuch goods as if Tioman were a place outside Malaysia.


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Declaration of goods transported from Tioman to theprincipal customs area

90E. The person in charge of any vessel or aircraft on which goodsare transported from Tioman to the principal customs area shallmake a declaration substantially in the form as prescribed underthe Customs Act 1967 or under any other laws in force for the timebeing giving particulars of the goods transported in such vessel oraircraft.

Taxable goods to be deemed non-taxable while in Tioman

90F. Any taxable goods, shall while in Tioman, be deemed to benon-taxable and the provisions of this Act shall be construedaccordingly:

Provided that the foregoing shall not apply in respect of anygoods declared by the Minister to be taxable on importation intoTioman.

Collection of taxes in Tioman

90G. In making regulations under section 61 of the Act, theMinister may provide—

(a) for the collection in Tioman of sales tax payable inrespect of goods transported or about to be transportedfrom or to Tioman to or from the principal customsarea;



Application of section 29 to goods transported to Tioman

90H. Section 29 shall apply to goods (other than any goodsdeclared by the Minister to be taxable on importation intoTioman) transported from the principal customs area to Tioman asif such goods had been exported or re-exported, as the case maybe.



PART XVIIISPECIAL PROVISIONS DEALING WITH PETROLEUM

Certain provisions of the Act to apply

91. Subject to sections 92 to 95, this Act shall apply to petroleum.

Varying the due-and-payable period and taxable period

92. Notwithstanding anything contrary contained in this Act, theMinister may by order, do any or all of the following:

(a) specify a different period for sales tax to be due andpayable in respect of petroleum;

(b) specify a different taxable period in respect ofpetroleum; and

(c) specify the conditions required to be complied withfor the operation of the different due-and-payableperiods of sales tax as well as different taxableperiods.

Delivery of petroleum subject to customs control beforepayment of sales tax

93. Notwithstanding section 25, any person may obtain deliveryof imported taxable petroleum from the control of Customswhether or not any part of or all of the sales tax on such goodshave been paid.

No drawback

94. Section 29 shall not apply to petroleum.

Parts XIV, XVII and XVIIA not to have effect

95. For the purpose of petroleum, Labuan, Langkawi and Tiomanshall be treated as being part of Malaysia and Parts I to XVIII shallapply in respect of petroleum manufactured in or imported into orexported from or transported to or from Labuan, Langkawi orTioman as if Parts XIV, XVII and XVIIA had not been enacted.


69

LAWS OF MALAYSIA

Act 64

SALES TAX ACT 1972

LIST OF AMENDMENTS

Amending law Short title In force from

Act A146 Free Trade Zones (Amendment) Act1972

06-10-1972

Act A195 Sales Tax (Amendment) Act 1973 01-06-1973


Act 24 Free Trade Zones Act 1971 06-10-1972 (section 43

Second Schedule)

Act 160 Malaysian Currency (Ringgit) Act1975

29-08-1975

P.U.(A)357/1980 Subordinate Courts Act (Extention)Order 1980

01-06-1981

Act 274 Finance (No. 2) Act 1982 01-01-1983

Act 293 Finance Act 1983 21-10-1983

Act 328 Finance Act 1986 24-10-1986

Act 329 Finance (No. 2) Act 1986 01-01-1987

Act 337 Finance Act 1987 24-10-1987


Act 438 Free Zones Act 1990 05-09-1991

Act 451 Finance Act 1991 01-01-1991 (sections 42, 43 and 44); 14-12-1990 (sections 45, 46 and 47)





Act 557 Finance Act 1997 25-10-1996

Act 578 Finance Act 1998 17-10-1997


Act A1070 Sales Tax (Amendment) (No. 2) Act1999

01-01-2000



Act A1183 Sales Tax (Amendment) (No. 2) Act2002

01-01-2003

Amending law Short title In force from


71

LAWS OF MALAYSIA

Act 64

SALES TAX ACT 1972

LIST OF SECTIONS AMENDED

Section Amending authority In force from

1 Act A961 13-09-1996

2 Act A251 14-06-1974

Act 293 21-10-1983

Act 451 01-01-1991

Act A875 04-03-1994

Act A961 03-09-1996

Act A1058 01-01-2000

Act A1070 01-01-2000

Act A1110 06-07-2001

Act A1163 01-09-2002

2A Act A146 06-10-1972

Act 24 06-10-1972 (section 43

Second Schedule)

2B Act 557 25-10-1996

3 Act A195 01-06-1973

Act A782 31-08-1990

5 Act A195 01-06-1973



Act A1058 01-01-2000

7 Act A195 01-06-1973

Act 328 24-10-1986

Act A782 31-08-1990

Act A1058 01-01-2000

Act A1183 01-01-2003

8 Act A782 31-08-1990

9 Act 293 21-10-1983

10 Act A195 01-06-1973

11 Act 328 24-10-1986

12A Act A1058 01-01-2000

13 Act A195 01-06-1973

Act 328 24-10-1986

Act 337 24-10-1987

13A Act A251 14-06-1974

Act A1058 01-01-2000

14 Act 337 24-10-1987

Act 578 17-10-1997

15 Act 293 21-10-1983

16 Act A195 01-06-1973

Act A1070 01-01-2000

17 Act A195 01-06-1973

Act A782 31-08-1990



Sales Tax 73

Act A1070 01-01-2000

17A Act A1058 01-01-2000

19 Act 451 01-01-1991

22 Act A251 14-06-1974

Act 293 21-10-1983

23 Act 293 21-10-1983

Act A1058 01-01-2000

Act A1110 06-07-2001

24 Act 328 24-10-1986

Act A1058 01-01-2000

Act A1183 01-01-2003

26 Act A251 14-06-1974

Act A1058 01-01-2000

Act A1110 06-07-2001

27A Act A1058 01-01-2000

28 Act A1058 01-01-2000

29 Act A251 14-06-1974

30 Act 293 21-10-1983

Act 328 24-10-1986

Act A782 31-08-1990

Act A1058 01-01-2000

31 Act A251 14-06-1974

Act 274 01-01-1983




31A Act 274 01-01-1983

31B Act A1058 01-01-2000

31C Act A1183 01-01-2003

31D Act A1183 01-01-2003

32 Act A782 31-08-1990

Act A1058 01-01-2000

33 Act A195 01-06-1973

36 Act A1058 01-01-2000

Act A1110 06-07-2001

39A Act A1110 06-07-2001

42 Act A1110 06-07-2001

43 Act A251 14-06-1974

Act A875 04-03-1994

Act A1058 01-01-2000

43A Act A1058 01-01-2000

44 Act A251 14-06-1974

Act A1058 01-01-2000

45 Act A1110 06-07-2001

46 Act A1110 06-07-2001

48 Act A1110 06-07-2001

51A Act A1110 06-07-2001

53 Act A195 01-06-1973

55 Act A195 01-06-1973



Sales Tax 75

57 Act A1058 01-01-2000

59A Act A1058 01-01-2000

60A Act 293 21-10-1983

61 Act A1058 01-01-2000

Act A1183 01-01-2003

62 Act A1058 01-01-2000

Act A1110 06-07-2001

63 Act A1058 01-01-2000

63A Act A1058 01-01-2000

64 Act A875 04-03-1994

66 Act A875 04-03-1994

68 Act A1183 01-01-2003

69 Act A782 31-08-1990

Act A1058 01-01-2000

Act A1070 01-01-2000

70 Act A782 31-08-1990

Act A1058 01-01-2000

Act A1070 01-01-2000

71 Act 451 01-01-1991

72 Act 329 01-01-1987

Act A1163 01-09-2002

73 Act 451 14-12-1990

Act A1183 01-01-2003




76 Act A251 14-06-1974

77 Act 451 14-12-1990

79 Act 451 14-12-1990

PART XV Act 293 21-10-1983

81 Act 329 01-01-1987

82 Act 329 01-01-1987

83 Act 329 01-01-1987

Act A1163 01-09-2002

84 Act 329 01-01-1987

85 Act 329 01-01-1987

86 Act 329 01-01-1987

87 Act 329 01-01-1987

88 Act 329 01-01-1987

89 Act 329 01-01-1987

90 Act 329 01-01-1987

PART XVIIA Act A1163 01-09-2002

90A Act A1163 01-09-2002

90B Act A1163 01-09-2002

90C Act A1163 01-09-2002

90D Act A1163 01-09-2002

90E Act A1163 01-09-2002

90F Act A1163 01-09-2002

90G Act A1163 01-09-2002



Sales Tax 77

90H Act A1163 01-09-2002

PART XVIII Act A1070 01-01-2000

91 Act A1070 01-01-2000

92 Act A1070 01-01-2000

93 Act A1070 01-01-2000

94 Act A1070 01-01-2000

95 Act A1070 01-01-2000

Act A1163 01-09-2002



Documents

AKTA CUKAI JUALAN 1972