Sibu Seafarers’ appeal for withdrawal of tax exemption allowed

The IRB headquarters in Cyberjaya. — Bernama photo

KUCHING (May 21): The appeal of five seafarers in Sibu against the withdrawal of their tax exemption on their employment income from exercising their employment on board a Malaysian sea-going ship is allowed by the Cyberjaya Inland Revenue Board’s (IRB) Tax Litigation Department.

The IRB, after a tax audit, found and regarded the ship which they were working on was not a Malaysian sea-going ship and thus withdrew their tax  exemption granted under Paragraph 34 (1) of Schedule 6 of the Income Tax Act 1967 and required them to pay additional tax for the past few years of assessment.

Aggrieved by the assessments raised thereof they filed in Notices of Appeal to the Special Commissioners of Income Tax (SCIT).

After having perused and delved into the contentions made in the written representation submitted by their appointed tax agents, the IRB Tax Litigation Department finally accepted the contentions and allowed their appeals resulting in an amicable out-of-court settlement.

These were recorded as settled before the Special Commissioners of Income tax yesterday.

The five seafarers were represented by appointed tax agents Philip Tong Hie Tung and Andrew Tong Jia Sheng of Tomax Tax Consultants Sdn Bhd Sibu and assisted by tax consultant Lam Kam Wing.

It is said the impact of the decision would help save a lot of seamen working on Malaysian ships in the future from being wrongly assessed for tax and losing their hard earned income in risking their lives in open sea.

from Borneo Post Online https://bit.ly/3lvGrQw
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