[TAX, CUSTOMS & TRADE] Tax Pulse: Post-SVDP 2.0 and the Return of the Revenue: Navigating New Challenges in Tax Audits and Investigations
With the conclusion of the Special Voluntary Disclosure Programme 2.0 (“SVDP 2.0”) on 31.5.2024, the Inland Revenue Board (“IRB”) has intensified its focus on tax audits and investigations. The newly established Strategic Compliance Branch (Cawangan Pematuhan Strategik) has been actively conducting raids, investigations, and desk audits across various industries and sectors in recent weeks.
The updated 2024 Tax Investigation Framework (“TIF”) signals stronger enforcement measures, including the prospect of unannounced inspections on business premises and even the residences of taxpayers, tax agents, and other relevant parties.
In this alert, we summarise the latest developments in the tax scene of mid-2024.
The Tax, Customs & Trade Team at LHAG is ready to assist you in navigating these evolving regulatory landscapes. For assistance regarding ongoing tax audits or investigations by the IRB, please contact the author, Chris Toh Pei Roo (tpr@lh-ag.com), or his fellow tax Partners Jason Tan Jia Xin (tjx@lh-ag.com) and Ivy Ling Yieng Ping (il@lh-ag.com).
[ESG] How the Extension of the Invalidity Scheme to Foreign Employees Aligns with ESG
The extension of the Invalidity Scheme under Malaysia’s SOCSO to foreign employees, effective 1 July 2024, is not just an added legal obligation for employers but also encourages companies and businesses to align with ESG principles.
If you have any queries, please contact the author, Tan Hooi Ping (hpt@lh-ag.com).
[CYBERSECURITY DATA & PRIVACY] Special Alert: PDPA 2010 Amendments Approved by Cabinet
On 4 July 2024, Minister of Digital, Gobind Singh Deo, announced the Cabinet’s approval of proposed amendments to Malaysia’s Personal Data Protection Act 2010 (“PDPA 2010”), set to be tabled during the current parliamentary session running from 24 June 2024 to 18 July 2024. Inspired by the European Union General Data Protection Regulations (“EU GDPR”), these amendments are poised to significantly impact Malaysian organisations’ data processing practices upon enactment.
This article highlights the key revisions announced by Gobind, which include mandatory data breach notifications, heightened responsibilities for data processors, and the prospective requirement for appointing Data Protection Officers.
If you have any queries, please contact CyberDataPrivacy lawyer, Arissa Ahrom (aa@lh-ag.com).
#lhagcdppractice
[EMPLOYMENT] Special Alert: Extension of Invalidity Scheme to Foreign Workers Effective 1 July 2024
Effective July 1, 2024, foreign workers in Malaysia will be eligible for the Invalidity Scheme under the Social Security Organisation (SOCSO).
In this alert, we summarise key takeaways from this initiative, which marks a significant enhancement to the protection of foreign employees’ welfare. This move aligns Malaysia with international labour standards, reinforcing the country’s commitment to the health, safety, and welfare of all workers.
If you have any queries, please contact Associate, Ashreyna Kaur Bhatia (akb@lh-ag.com), or her team Partner, Amardeep Singh Toor (ast@lh-ag.com).
[INTERNATIONAL ARBITRATION] Special Alert: Shifting Tides: The Fate of Arbitration Clauses in Liquidation Proceedings
In liquidation or winding-up proceedings, what happens if the disputed debts in question are subject to an arbitration agreement? Are the courts entitled to scrutinise the genuineness of disputed debts before deciding whether to stay the winding-up proceedings and refer parties to arbitration? These issues were recently considered by the Court of Appeal of Malaysia and the Privy Council.
In this alert, we will first discuss the decisions in Swissray Asia Healthcare Co. Ltd v V Medical Services M Sdn Bhd (Civil Appeal No. W-02(NCC)(A)-1479-08/2022) and Sian Participation v Halimeda International Ltd [2024] UKPC 16, before turning to analyse the practical implications of these decisions on creditors and debtors in winding-up proceedings.
If you have any queries, please contact the authors, Crystal Wong Wai Chin (wwc@lh-ag.com), Soh Zhen Ning (szn@lh-ag.com), and Ruth Lim Jia Yun (jylim@lh-ag.com).
[TMT] Special Alert: Safeguarding IT Service Providers: Addressing Breach of Payment Terms in IT Contracts
Breach of payment terms is a common issue in IT contracts, often leading to disputes and cash flow problems for IT service providers.
This alert examines various contractual mechanisms that can be employed to mitigate the problem.
If you have any queries, please contact Associate, James Lau Jian Hui (ljh@lh-ag.com), or his team Partner, Chan Mun Yew (myc@lh-ag.com). They have notable experience in handling disputes relating to the Technology, Media & Telecommunication (TMT) industry.
[ESG] Role of Legal Professionals in Shaping ESG Standards
Undoubtedly, lawyers play a crucial role in interpreting ESG regulations, mitigating legal risks, and assisting organisations in integrating ESG criteria into their operations and strategies.
This alert summarizes the key points discussed by our author, Nurul Aisyah Hassan, during her recent presentation at the ESG National Conference, which highlights the key areas in which legal professionals may influence sustainable practices and ensure adherence to ethical standards.
If you have any queries, please contact the author, Nurul Aisyah Hassan (nah@lh-ag.com).
[TAX, CUSTOMS & TRADE] Special Alert: Crypto in the IRB’s Crosshairs: Debunking 3 Myths for Traders and Dabblers
The recent launch of Ops Token by the Inland Revenue Board (“IRB”), in conjunction with the Royal Malaysian Police, highlights the IRB’s commitment to combating revenue leakages from cryptocurrency (“Crypto”) activities. This initiative also underscores the urgent need for those involved in Crypto activities to reassess their tax exposure and risks.
In this alert, we debunk three common myths:
• Are virtual transactions safe from scrutiny?
• Are no taxes payable if you do not trade for a living?
• Are no taxes payable if you trade in foreign Crypto assets only?
If you have any queries pertaining to the tax treatment of Crypto transactions, please contact our Partner Chris Toh Pei Roo (tpr@lh-ag.com).
[INTERNATIONAL ARBITRATION] Conditional Arbitral Awards – Are They Final?
If an arbitration award contains certain conditional reliefs or orders, can an arbitrator subsequently revisit the case to ascertain whether these conditions have been fulfilled? Can a conditional award be considered as a final award? These issues were considered by the Singapore Court of Appeal in the recent decision of Voltas Ltd v York International Pte Ltd [2024] SGCA 12.
This alert discusses the key takeaways from Voltas Ltd v York International Pte Ltd and identifies the practical implications of this decision for arbitrators and parties to an arbitration.
If you have any queries, please contact author, Soh Zhen Ning (szn@lh-ag.com) or his team Partner, Crystal Wong Wai Chin (wwc@lh-ag.com).
[TAX, CUSTOMS & TRADE] Special Alert: CGT vs RPGT – A Flowchart Guide
The introduction of Capital Gains Tax (CGT) has significantly altered the tax landscape in Malaysia (see our Special Alert: Navigating Capital Gains Tax: Roadmap to a New Tax Landscape dated 26.2.2024). The interplay between CGT and the existing Real Property Gains Tax (RPGT) regime has raised many questions, particularly due to the various exemptions, amendments, and complexities introduced in recent months.
To assist in navigating these changes, the LHAG Tax Team has prepared a flowchart outlining the taxability of real property, RPC shares, and other capital assets under the RPGT and CGT regimes. Please note that the law is stated as of June 2024.
If you have any queries, please contact Partner, Chris Toh Pei Roo (tpr@lh-ag.com), or Pupil, Soon Jia Ying (jysoon@lh-ag.com).