WINDFALL PROFIT LEVY ACT 1998

k LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 592 WINDFALL PROFIT LEVY ACT 1998 As at 30 December 2023 This text is ONLY AN UPDATED TEXT of the Windfall Profit Levy Act 1998 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 WINDFALL PROFIT LEVY ACT 1998 … … … ... 28 December 1998 Date of publication in the Gazette … … … ... 31 December 1998 Latest amendment made by Act 851 which came into operation on … … … ... 30 December 2023 Date of Royal Assent PREVIOUS REPRINTS First Reprint … … … … … 2002 Second Reprint … … … … … 2006 3 LAWS OF MALAYSIA Act 592 WINDFALL PROFIT LEVY ACT 1998 ARRANGEMENT OF SECTIONS Section 1. Short title and commencement 2. Interpretation 3. Powers of Director General 3A. Power to extend period 3 B. Power to modify terms and conditions 4. Powers of a proper officer of customs 5. Authority card to be produced 6. Imposition of levy 6A. Public ruling 7. Order to be laid before Dewan Rakyat 8. Registration 9. Penalty for late payment 10. Levy may be recovered as civil debt 11. Submission of return 12. Assessment of levy 13. Remission of levy and penalty 14. Claim for refund of levy and penalty overpaid or erroneously paid, etc. 14A. Refund upon satisfaction of Director General and with supporting evidence 15. Payment of levy or penalty shortpaid or erroneously refunded 16. Duty to keep records 17. Persons bound to give information 4 Laws of Malaysia ACT 592 Section 18. Access to place or premises 19. Penalty on making incorrect return and on falsifying documents 20. Penalty on refusing to answer questions or on giving false information 21. Failure to comply with requirement of this Act 22. General offence and penalty 23. Power to compound 24. Offences by body corporate, etc. 25. Institution of prosecution 26. Abetting an offence 27. Power of Minister to apply Customs Act 1967 28. Regulations 5 LAWS OF MALAYSIA Act 592 WINDFALL PROFIT LEVY ACT 1998 An Act to provide for the imposition of a levy on windfall profit derived from the production of goods and for matters connected therewith and incidental thereto. [1 January 1999] ENACTED by the Parliament of Malaysia as follows: Short title and commencement 1. (1) This Act may be cited as the Windfall Profit Levy Act 1998. (2) This Act shall come into operation on 1 January 1999. Interpretation 2. In this Act, unless the context otherwise requires— “Department” means the Royal Malaysian Customs and Excise Department; “Director General” means the Director General of Customs and Excise appointed under subsection 3(1) of the Customs Act 1967 [Act 235]; “Fund” means the Federal Consolidated Fund; “goods” means all kinds of movable and immovable property; “levy” means a levy imposed under section 6; 6 Laws of Malaysia ACT 592 “Minister” means the Minister charged with the responsibility for finance; “prescribed”, unless otherwise stated, means prescribed by regulations made under section 28; “prescribed goods” means goods prescribed by order made under section 6; “proper officer of customs” shall have the same meaning as is assigned to that expression in section 2 of the Customs Act 1967. Powers of Director General 3. Subject to the direction and control of the Minister, the Director General shall have the superintendence of all matters relating to the levy under this Act. Power to extend period 3A. Where, by this Act, a period is specified within which an act or thing is to be done by a person, and the Minister is satisfied that the act or thing could not be completed in that period due to the occurrence of public emergency or public health crisis, the Minister may, upon such terms and conditions as the Minister thinks fit, extend the period for the completion of the act or thing before the expiration of the period. Power to modify terms and conditions 3B. (1) Where terms and conditions are imposed pursuant to this Act, the Minister may, on the advice of the Director General, from time to time modify the terms and conditions for the purpose of carrying out the objects of this Act. (2) Before modifying the terms and conditions, notice must be given to the person bound by the terms and conditions stating— Windfall Profit Levy 7 (a) the terms and conditions as modified; and (b) the date the terms and conditions as modified take effect. (3) The modified terms and conditions shall not take effect in less than fourteen days from the date the notice is issued under subsection (2). (4) Where the terms and conditions were initially imposed by the Director General pursuant to this Act, the terms and conditions as modified by the Minister shall be deemed to have been imposed by the Director General. (5) For the purposes of this section, “modify” means add to, delete or vary. Powers of a proper officers of customs 4. Any proper officer of customs shall, in addition to the duties and powers conferred under the Customs Act 1967, have all the duties and powers to enforce and ensure due compliance with the provisions of this Act. Authority card to be produced 5. (1) Every proper officer of customs when acting against any person under this Act shall, if not in uniform, on demand, declare his office and produce to the person against whom he is acting such document establishing his identity as the Director General may direct to be carried by such officer. (2) It shall not be an offence for any person to refuse to comply with any demand made by any officer acting or purporting to act under this Act if such officer is not in uniform and refuses to declare his office and produce his identification document on demand being made by such person. 8 Laws of Malaysia ACT 592 Imposition of levy 6. (1) There shall be charged and levied a levy to be known as windfall profit levy on such amount as may be prescribed by the Minister by order published in the Gazette which exceeds the amount of such gains as may be prescribed by the Minister in such order and derived from the production of the goods prescribed in such order. (2) An order made under subsection (1) may prescribe different amounts and rates for different types of goods. (3) A levy shall be paid by the producer of the prescribed goods and shall be paid into the Fund. (4) Any person who fails to pay any levy imposed under this section commits an offence and shall on conviction be liable to a fine not exceeding ten times the amount of levy due or to imprisonment for a term not exceeding three years or to both. (5) The prosecution of any person under this section shall not relieve such person from liability for the payment of any levy for which he is or may be liable or from liability to make any return which he is required by this Act to make. Public ruling 6A. (1) The Director General may, at any time, make a public ruling on the application of any provision of this Act. (2) The Director General may withdraw, either wholly or partly, any public ruling made under this section. Order to be laid before Dewan Rakyat 7. An order determining the amount of levy to be levied under this Act shall be laid before the Dewan Rakyat. Windfall Profit Levy 9 Registration 8. Every producer of prescribed goods shall register with the Department. Penalty for late payment 9. (1) Where any amount of levy remains unpaid after the last day on which it was payable, then a penalty equal to ten per cent of such unpaid amount shall thereupon be payable. (2) If the levy due and payable remains unpaid for more than thirty days after the last day on which it was so payable the rate of penalty under subsection (1) on such unpaid levy shall be increased by ten per cent for the second period of thirty days after such last day and for every succeeding period of thirty days or part thereof during which such amount remains unpaid to a maximum of fifty per cent. Levy may be recovered as civil debt 10. Without prejudice to any other remedy, any levy due and payable and any penalty accruing under this Act may be recovered as a civil debt due to the Government. Submission of return 11. (1) Every producer of prescribed goods shall within the prescribed time deliver to the proper officer of customs a return in the form and manner as determined by the Director General stating the amount of levy payable, quantity or volume of prescribed goods produced, and such other particulars as the Director General may require. (2) Every return submitted in accordance with subsection (1) shall be accompanied by payment of the amount due as levy. 10 Laws of Malaysia ACT 592 Assessment of levy 12. (1) Any return submitted under section 11 may be accepted by the proper officer of customs as sufficient proof of the matters contained therein, and levy may be assessed accordingly. (2) If the proper officer of customs has reason to believe that the amount of levy shown in a return made by any person under section 11 is less than the amount payable under this Act, he may assess the levy at such greater amount as he deems fit. Remission of levy and penalty 13. (1) The Minister may, if he deems fit, remit the whole or any part of the levy due and payable under this Act. (2) The Director General may, if he deems fit, remit the whole or any part of the penalty under section 9. (3) Where a person which has been granted remission under subsection (1) or (2) has paid any levy or penalty to which the remission relates, subject to subsection 14(3), he shall be entitled to a refund of the amount of the levy or penalty paid which had been remitted. Claim for refund of levy and penalty overpaid or erroneously paid, etc. 14. (1) Any person who has overpaid or erroneously paid any levy or penalty, or is entitled to a refund of the levy or penalty under section 13 may make a claim for refund in the form and manner as determined by the Director General. (2) A claim for refund under subsection (1) shall be made to the Director General within one year from the date such overpayment or erroneous payment occurred or such entitlement of the refund occurred. Windfall Profit Levy 11 (3) The Director General may reduce or disallow any refund in respect of the claim under subsection (1) to the extent that the refund would unjustly enrich the person referred to in subsection (1). Refund upon satisfaction of Director General and with supporting evidence 14A. (1) A claim for refund of levy or penalty under subsection 14(1) shall be supported by such evidence as required by the Director General. (2) The Director General may make such refund in respect of the claim made by any person under subsection 14(1) after being satisfied that the person has properly established the claim. Payment of levy or penalty shortpaid or erroneously refunded 15. Where the whole or any part of any levy or penalty under section 9 has not been paid, or after having been paid has been erroneously refunded, then, provided a demand is made within three years from the date on which such levy or penalty were paid, or the refund was made, as the case may be, the person liable to pay such levy or penalty, or the person to whom such refund has erroneously been made, as the case may be, shall pay the deficiency or repay the amount paid to him in excess. Duty to keep records 16. (1) Every producer of prescribed goods shall keep such books of accounts or other records as the Director General may direct showing full and true records written up to date of all transactions which affect or may affect his liability to levy under this Act and shall keep those books of accounts or other records in the national language or English language. (2) The books of accounts and other records which are required to be kept in accordance with this section shall be preserved for a period 12 Laws of