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Lee Hishammuddin Allen & Gledhill

Indirect Tax

Indirect Tax
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Indirect Tax
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Indirect Tax

LHAG’s dedicated Indirect Tax Practice has significant experience in complex briefs concerning sales and service tax (SST), Goods and Services Tax (GST), import and export duties and excise duties.

Indirect tax is an area often overlooked in many commercial transactions. Our experience has shown that a transaction executed without due consideration to its indirect tax implications could result in significant tax liability/ dispute subsequently.

The indirect tax landscape in Malaysia has experienced rapid changes in recent years, from the abolishment of Goods and Services Tax (GST) to the continuous widening of the tax scope for the current sales tax and service tax (SST) to generate more tax revenue. We believe that by keeping abreast with the latest policies, legislations, and case law, we are able to provide strategic and practical advice to our clients.

We have advised a wide range of clients including property developers, contractors, manufacturers, banks, start-ups, telecommunication companies and oil & gas companies on indirect tax compliance and regulatory issues.

We have acted in numerous landmark indirect tax disputes before the Customs Appeal Tribunal, GST Tribunal and in judicial review applications. Clients have appointed us in challenging and appealing against bills of demand and penalties raised by the Royal Malaysian Customs Department (Customs).

Being a full-service law firm, we are able to draw upon the expertise of our colleagues in different practice groups to tackle complex indirect tax issues and disputes. Our Indirect Tax Practice also draws on its synergy with the Firm’s Arbitration practice when representing companies in arbitration proceedings involving indirect tax disputes. Apart from litigation, we also draw strength from our Corporate Practice in assisting our clients with the restructuring of their business operations/ commercial transactions to achieve greater efficiency.

Partners Specializing in this area

Partners Specializing
in this area

Learn more about our partners who specialize in this area

Chris Toh Pei Roo

Partner

Chris Toh Pei Roo

Partner

Dato’ Nitin Nadkarni

Consultant

Dato’ Nitin Nadkarni

Consultant

Ivy Ling Yieng Ping

Partner

Ivy Ling Yieng Ping

Partner

Key Experience

Indirect Tax Advisory
  • Advised a food and drink manufacturer on whether the raw materials used to manufacture their end products qualify for sales tax exemption for under the Sales Tax Act 2018.
  • Advised a property investment holding company on whether the services supplied by them qualifies for an intra-group relief under the Service Tax Act 2018.
  • Advised an oil & gas company on the service tax implications of their business structure and their joint venture operation with a foreign company.
  • Advised a quarry operator on whether their export practice complies with the Customs Act.
  • Advised a tobacco company on the issue of illicit trading of tobacco products and Customs enforcement jurisdiction.
Indirect Tax Litigation
  • Representation of a multinational manufacturing company in a judicial review application to quash a GST bill of demand totalling RM 30 million. The case concerned the provision of R&D Services to the service recipient in overseas.
  • Representation of a quarry operator in its judicial review application against Customs in relation to a GST bill of demand issued for goods exported to buyers overseas.
  • Successful representation of the Malaysian subsidiaries of a state-owned, publicly traded, multinational engineering and construction company in China in a GST dispute with the Customs.
  • Successful representation of a telco company in its out-of-court settlement negotiation with Customs in respect of a GST bill of demand in excess of RM30 million.
  • Successfully negotiated for the compound of a strict liability offence for a multinational company under the Sales Tax Act.
  • Successfully acted for an exporter of timber logs in a judicial review application to challenge the Customs’ decision in disallowing the zero-rating of its exported supplies under the GST Act.
  • Successfully represented a leading luxury fashion retailer in its challenge before the Court of Appeal against the Customs’ decision to reject its special refund application under the GST Act 2014.

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Other Practice Areas

Construction & Engineering Disputes

Corporate

Cybersecurity, Data & Privacy

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