Amiri LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 543 PETROLEUM (INCOME TAX) ACT 1967 As at 1 February 2017 QUESTION 1 (CLO 1) Poh Kong Sdn Bhd, a company resident in Malaysia, manufactures tools and parts for export. In 2020, the company entered into an agreement with Aliciia Lee (China) Ltd for technical assistance and supply cum installation of plant and machinery. The following expenses have been incurred: Item (i) Technical advice/management (ii) Supply of plant and machinery (iii) Services in connection with the installation of the plant RM 70,000 230,000 45,000 You are required to: Explain, with reason, whether each of the above amount is subject to withholding tax. (ii) (iv) (6 marks) State the rate of withholding tax in for each amount. (3 marks) Explain the consequences of not complying with the withholding tax provisions. (3 marks) Explain the collection and recovery mechanisms provided in the Income Tax Act. (3 marks) The accountant in Maybank has approached you to seek clarification on withholding tax that may be applicable in the following circumstances. a. Deposits placed in Maybank by Hong Kong residents b. Malaysian residents who have deposits in Maybank. (v) Explain whether withholding tax provisions are applicable in each of the situation above