INLAND REVENUE BOARD OF MALAYSIA ACT 1995

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 533 INLAND REVENUE BOARD OF MALAYSIA ACT 1995 As at 15 January 2024 This text is ONLY AN UPDATED TEXT of the Inland Revenue Board of Malaysia Act 1995 by the Attorney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT 2 INLAND REVENUE BOARD OF MALAYSIA ACT 1995 Date of Royal Assent … … … ... 7 February 1995 Date of publication in the Gazette … … … … 16 February 1995 Latest amendment made by Act A1698 which came into operation on … … … … 15 January 2024 PREVIOUS REPRINTS First Reprint … … … … … 2002 Second Reprint … … … … … 2006 3 LAWS OF MALAYSIA Act 533 INLAND REVENUE BOARD OF MALAYSIA ACT 1995 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Interpretation PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD 3. Establishment of the Inland Revenue Board 4. Vesting provisions 5. Common seal 6. Membership of the Board 6A. Chief executive officer 7. Terms of office 8. Disqualification of member 9. Revocation and resignation of member 4 Laws of Malaysia ACT 533 PART III FUNCTIONS AND POWERS OF THE BOARD 10. Functions of the Board 10A. Board may act as collection agent 10B. Additional function of the Board 11. Powers of the Board 12. Appointment of committees 13. Delegation of powers 14. Power of Minister to give directions and require information PART IV PROVISIONS RELATING TO EMPLOYEES 15. Employment 16. Salaries, terms and conditions of service of Government employees to be taken into account 17. Appointment of other employees, agents and consultants 18. Discipline 18A. Disciplinary Committees 18B. Disciplinary proceedings in respect of chief executive officer 18C. Disciplinary Appeal Committee 18D. Termination of service on grounds of public interest 18E. Recommendation by Disciplinary Committee 18F. Opportunity to be heard 18G. Termination of service is not dismissal 19. Continuation and completion of disciplinary proceedings 20. Imposition of surcharge 21. Protection from personal liability 22. Public servants Inland Revenue Board of Malaysia PART V FINANCIAL PROVISIONS Seksyen 23. Fund of the Board 24. Annual estimates 25. Power to borrow 26. Grants 27. Bank accounts and application of revenue 28. Investment 28A. Power to establish companies PART VI GENERAL 29. No proceedings against the Board as agent of Government 30. Proceedings conducted by officers of the Board 31. Obligation of secrecy 32. Statutory Bodies (Accounts and Annual Reports) Act 1980 33. Power of Minister to amend the Second and Third Schedules 34. Regulations FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE 5 7 LAWS OF MALAYSIA Act 533 INLAND REVENUE BOARD OF MALAYSIA ACT 1995 An Act to establish and incorporate the Inland Revenue Board of Malaysia, to provide for its functions and powers and for matters connected therewith. [1 March 1996, P.U. (B) 76/1996] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled and by the authority of the same, as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Inland Revenue Board of Malaysia Act 1995. (2) This Act shall come into force on such date as the Minister may, by notification in the Gazette, appoint. Interpretation 2. In this Act, unless the context otherwise requires— “appointed day” means the day on which this Act comes into force; 8 Laws of Malaysia ACT 533 “Board” means the Inland Revenue Board of Malaysia established under section 3; “body” means a body corporate; “Chairman” means the Chairman of the Board and includes any temporary Chairman of the Board; “chief executive officer” means the chief executive officer appointed under subsection 6A(1) and includes any person appointed under subsection 6A(3); “Director General” means the Director General of Inland Revenue referred to in section 134 of the Income Tax Act 1967 [Act 53]; “Fund” means the Fund established under section 23; “liabilities” means liabilities, debts, charges, duties and obligations of every description whether present or future, actual or contingent, and whether payable or to be observed or performed in Malaysia or elsewhere; “member” means a member of the Board referred to in section 6; “Minister” means the Minister for the time being charged with the responsibility for finance; “property” includes all property, movable and immovable, and all estates, interests, easements or rights, whether equitable or legal in, to or out of property, choses in action, money and goodwill; and “vested”, in relation to property, includes rights to property which are future or contingent and rights in reversion and remainder; “rights” means all rights, powers, privileges and immunities, whether actual, contingent or prospective; “vesting date” means the date on which property, rights and liabilities specified by the Minister in the order under subsection 4(1) to which the Government of Malaysia was entitled or subject to, are transferred to and vested in the Board. Inland Revenue Board of Malaysia 9 PART II ESTABLISHMENT OF THE INLAND REVENUE BOARD Establishment of the Inland Revenue Board 3. There is hereby established a body corporate by the name “Inland Revenue Board of Malaysia” with perpetual succession and a common seal, and which may sue and be sued in its name and, subject to and for the purposes of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Board upon such terms as it deems fit. Vesting provisions 4. (1) Subject to this Act, the Minister may, from time to time, by order published in the Gazette, appoint a vesting date and on such date all property, rights or liabilities of the Government of Malaysia specified by the Minister in such order shall, by virtue of this Act, be transferred to and vested in the Board without any conveyance, assignment or transfer whatever. (2) Every property vested by virtue of subsection (1) in the Board shall be so vested in the Board for the like title, estate or interest and on the like tenure as the same was vested or held immediately before the vesting date. (3) Every chose in action vested by virtue of subsection (1) in the Board may, after the vesting date, be sued on, recovered or enforced by the Board in its own name and it shall not be necessary for the Board or the Government of Malaysia to give notice to the person bound by the chose in action of the vesting effected by subsection (1). (4) Every right and liability vested by virtue of subsection (1) in the Board may, on and after the vesting date, be sued on, recovered or enforced by or against the Board in its own name and it shall not be 10 Laws of Malaysia ACT 533 necessary for the Board or the Government of Malaysia to give notice to the person whose right or liability is affected by the vesting under subsection (1). (5) Any pending legal proceedings by or against the Government of Malaysia which relate to any property, right or liability transferred to and vested in the Board by virtue of subsection (1) may, on and after the vesting date, be continued by or against the Board. (6) In the case of rights and liabilities arising under any loans which is vested in the Board on the vesting date, the Board may enter into such arrangements or agreements over such rights and liabilities with the Government of Malaysia or any third party. (7) On and after the vesting date, any agreement relating to any property, rights and liabilities transferred to and vested in the Board under subsection (1) to which the Government of Malaysia was a party immediately before the vesting date, whether in writing or not, and whether or not of such a nature that rights and liabilities thereunder could be assigned by the Government of Malaysia, shall have effect as if the Board has been a party to the agreement. Common seal 5. (1) The common seal of the Board shall bear such device as the Board may approve and such seal may from time to time be broken, changed, altered and made anew by the Board as it may think fit. (2) The common seal shall be kept in the custody of the Chairman and shall be authenticated by any two members generally or specially authorized by the Board for the purpose or by one member and the Chairman. (3) All deeds, documents and other instruments purporting to be sealed with the common seal and authenticated in accordance with subsection (2) shall, until the contrary is proved, be deemed to have been validly executed. Inland Revenue Board of Malaysia 11 (4) The common seal of the Board shall be officially and judicially noticed. Membership of the Board 6. (1) The Board shall consist of the following members: (a) the Secretary General to the Treasury, who shall be the Chairman; (b) the Attorney General or his representative; (c) the Director General of Public Service or his representative; (ca) the chief executive officer; (d) not more than two other persons representing the Government, who shall be appointed by the Minister; (da) a person representing the State of Sabah who shall be appointed by the Minister after consultation with the Chief Minister of Sabah; (db) a person representing the State of Sarawak who shall be appointed by the Minister after consultation with the Premier of Sarawak; and (e) not more than three other persons who shall be appointed by the Minister. (2) The members appointed under paragraphs (1)(da), (db) and (e) shall be from among persons of standing and experience in financial, commercial, tax or legal matters. (3) (Deleted by Act A997). (4) In the event of the Chairman being absent or unable to act due to illness or any other cause, the Minister shall appoint any member of the Board to be the temporary Chairman. 12 Laws of Malaysia ACT 533 (5) The provisions of the First Schedule shall apply to the Board. Chief executive officer 6A. (1) The Minister shall, on the recommendation of the Board, appoint a chief executive officer who shall be responsible for the day-to-day administration of the Board. (1A) The Board shall, after consulting the chief executive officer, appoint two or more deputy chief executive officers. (2) The appointment of the chief executive officer and the deputy chief executive officers shall be notified in the Gazette. (3) In the event the chief executive officer is temporarily unable to perform his duties due to illness or any other cause, the Minister shall, on the recommendation of the Board, appoint one of the deputy chief executive officers to act in place of the chief executive officer during the period of inability. Terms of office 7. Subject to such terms as the Minister may determine, a member appointed under paragraph 6(1)(d), (da), (db) or (e) shall hold office for a term not exceeding three years and shall be eligible for reappointment. Disqualification of member 8. No person shall continue to hold office as a member if he— (a) is convicted of an offence involving fraud, dishonesty or moral turpitude; (b) is of unsound mind or is otherwise incapable of discharging his duties; Inland Revenue Board of Malaysia 13 (c) is adjudicated a bankrupt; or (d) absents himself from three consecutive meetings of the Board without leave of the Chairman. Revocation and resignation of member 9. (1) The Minister may, at any time, without giving any reason therefor, revoke the appointment of— (a) any member appointed under paragraph 6(1)(d) or (e); (b) a member appointed under paragraph 6(1)(da) after consultation