World Tax

In the recent case of Upayapadu (M) Sdn Bhd (“Taxpayer”) v Ketua Pengarah Hasil Dalam Negeri1, the Taxpayer was successful in its judicial review application against the Director General of Inland Revenue’s (“DGIR”) decision to subject certain sums received by the Taxpayer pursuant to a settlement agreement (“Settlement Agreement”) to income tax even though the Settlement Agreement was entered into in consideration for the relinquishment of certain rights and licences held by the Taxpayer to the relevant authorities (“the Rights”).

In the recent case of Syarikat Pembinaan D.S.R. Sdn Bhd ("Taxpayer") v Director General of Customs and Excise [Civil Appeal No. K-01(A)-58-02/2023], the Taxpayer successfully appealed to the Court of Appeal against the High Court's decision, which upheld the Director General of Customs and Excise’s ("Customs") refusal to give effect to the exemption under section 155 of the Goods and Services Tax Act 2014 (“the Exemption”). Under section 155, taxable supplies of goods or services made within a “designated area” (i.e. Labuan, Langkawi and Tioman) are exempted from goods and services tax (“GST”).

VSTN has been authorised by HMRC as a software provider for Pillar Two reporting in the United Kingdom.