The proper tax treatment of real property disposals is a common area of dispute between taxpayers and the Inland Revenue Board (Revenue). Taxpayers who have disposed of investment properties expect to be taxed under the Real Property Gains Tax Act 1976 (RPGTA). The Revenue, on its part, may disagree, taking the view that the taxpayer had been trading and ought to be taxed (at the higher rate) under the Income Tax Act 1967 (ITA).
ABOUT THE AUTHORS
Kumar Kanagasingam Senior Partner
Banking & Insolvency E: [email protected]
Sean Yeow Huang-Meng Partner
Banking & Insolvency E: [email protected]
Andrew Chiew Ean Vooi Partner
COVID-19 Crisis
COVID-19 continued to take its toll on the Malaysian economy in 2021.
On 12 November 2021, Bank Negara Malaysia (BNM) reported that Malaysia's economy contracted 4.5% year-on-year in the third quarter of 2021. This comes after a 5.6% contraction of Malaysia's GDP in 2020, which was the second worst contraction since the Asian financial crisis in 1998.
Example: A obtains judgment against B and C for RM500,000. Are B and C liable to equal proportions of the judgment sum, i.e., RM250,000 each, or are they each liable for RM500,000?
This distinction between "joint liability" and "joint and several liability" was recently clarified by the Federal Court.
Brief facts
Without a doubt, a scheme of arrangement is a preferred corporate rescue mechanism for a company in financial distress. It allows the management of a company to retain control while carrying out an approved debt restructuring compromise or arrangement with creditors of the company. The ultimate goal is to restructure the debts of the company in a manner acceptable to at least 75% of its creditors in value so that the company can continue as a going concern.
The COVID-19 pandemic has caused significant disruptions to businesses and their cash flow, with some pushed to the brink of insolvency. The directors of a company should be aware of their duties and potential personal liability if the company continues to trade while it is insolvent. These duties and potential liability may also apply to officers primarily responsible for the management of the company.
Overview of directors' duties
A director owes various statutory and fiduciary duties to the company, including:
Following the outbreak of the novel coronavirus (COVID-19) which has seen the global economy descend into a state of turmoil, companies around the world strive to weather the storm of unprecedented challenges to their businesses. As Malaysia undergoes the fourth phase of its Movement Control Order to further curb the spread of COVID-19, companies are already planning or putting in place the necessary measures to soften the impact of COVID-19 on their businesses.
It is without doubt that a business as a going concern is more valuable than its net tangible assets. Continuing business has the potential of generating future profits. In fact, a commercially viable business does not only bring economic benefits, but also broader social benefits. As such, Governments around the world have rushed to implement various measures to assist businesses to restructure and combat the financial impact of the COVID-19 outbreak.
8 fathom . AUGUST 2015 Shipping Case Digest |by Andrew Chiew Ean Vooi and Jennifer James Ilango| MV “Sanko Mineral” With the current downturn in the shipping industry, shipowner insolvency is often a concern. In the MV “Sanko Mineral” (the Sanko Mineral),1 we find juxtaposition between in rem proceedings in the Admiralty court and cross-border insolvency proceedings. (i) Tokyo insolvency proceedings In July 2012, the owners of the Sanko Mineral, Sanko Holdings (“Sanko”) entered into reorganisation proceedings under the Corporate Reorganisation Act in Japan.