KUCHING: The appeals of a ship master in Sibu against the withdrawal of tax exemption on his employment income from working on board a Malaysian seagoing vessel have been allowed by the Inland Revenue Board (IRB)’s Dispute Resolution Department.
His income was tax-exempted under Paragraph 34(1) of Schedule 6 of the Income Tax Act 1967 for all past years of assessments, but the IRB had withdrawn it after finding in an audit that the ship where he was employed on was not a Malaysian seagoing ship, said tax consultant Lam Kam Wing in a statement.
Following the audit, the ship master was required to pay tax as well as penalty under Section 113(2) of the Income tax Act 1967 for assessment years 2014 to 2017.
The statement said aggrieved by these assessments, the ship master filed notices of appeal to the Special Commissioners of Income Tax (SCIT) against the assessments.
He then, through his tax agent Tomax Tax Consultant Sdn Bhd and assisted by Lam, submitted a lengthy representation to IRB regarding the appeals.
“After having perused and delved into the representation submitted, the IRB Dispute Resolution Department finally accepted the contentions and allowed the appeals and returned the Notices of Appeal to the ship master without registering them to the Special Commissioners of Income Tax for hearing,” said the statement.
It added that a seaman in another similar case also had his appeal allowed by IRB and the appeal would be duly settled before the SCIT soon.
The SCIT is an independent tribunal made up of panel members appointed by the Yang Di-Pertuan Agong to handle tax appeals.
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