BACKGROUND AND EXPERIENCE
Mr Vincent Josef is the tax consultant of TST Consultants Sdn Bhd. A former Assistance Director General of the Inland Revenue Board, Mr. Vincent Josef has served in various divisions during his 35 years service with the Board. His expertise includes Corporate and Business Taxation, Tax Audits and Investigate, Civil Suit and Prosecution, Schedular Tax Deductions, and Tax Consultancy.
In addition, Mr Josef has wide experience in lecturing at IRB events and professional institutions. He also sits on the Examination Panel of the Financial Planning Association of Malaysia.
Thursday, August 27, 2009
Tan Thai Soon
BACKGROUND AND EXPERIENCE
Mr Tan Thai Soon is the managing director of TST Consultants Sdn Bhd. He obtained his Doctor of Business Administration in 2010 from University of Newcastle, Australia, specializing in the study of Knowledge Management and Malaysian enterprises. He holds a Master of Science in Management Accounting and Planning from University Utara Malaysia in 2007 and Bachelor degree in Economic Studies from University of Newcastle Upon Type, UK in 1984.
He is an associate member of the Malaysian Institute of Taxation (ATII), a member of Malaysian Association of Company Secretaries (MCCS) and a member of Malaysian Institute of Management (MMIM). He is also a Certified Financial Planner (CFP) and a Registered Financial Planner (REP).
He has obtained substantial experience in management consultancy assignments while attached with KPMG Peat Marwick Consultants Sdn Bhd, which include; feasibility study as special consultants, monitoring of housing projects, corporate recovery and receivership assignments.
He has more than 13 years experience in corporate secretarial and taxation matters. Under the Self Assessment System (SAS) since 2001, he has effectively handled tax audit and tax investigation assignments for clients.
He provides consultancy services in areas of financial management, management consultancy, project management, information system & knowledge management, and computerization of accounting system.
He has exposure to a wide variety of business organization, particularly in construction, housing development and manufacturing industries.
Mr Tan Thai Soon is the managing director of TST Consultants Sdn Bhd. He obtained his Doctor of Business Administration in 2010 from University of Newcastle, Australia, specializing in the study of Knowledge Management and Malaysian enterprises. He holds a Master of Science in Management Accounting and Planning from University Utara Malaysia in 2007 and Bachelor degree in Economic Studies from University of Newcastle Upon Type, UK in 1984.
He is an associate member of the Malaysian Institute of Taxation (ATII), a member of Malaysian Association of Company Secretaries (MCCS) and a member of Malaysian Institute of Management (MMIM). He is also a Certified Financial Planner (CFP) and a Registered Financial Planner (REP).
He has obtained substantial experience in management consultancy assignments while attached with KPMG Peat Marwick Consultants Sdn Bhd, which include; feasibility study as special consultants, monitoring of housing projects, corporate recovery and receivership assignments.
He has more than 13 years experience in corporate secretarial and taxation matters. Under the Self Assessment System (SAS) since 2001, he has effectively handled tax audit and tax investigation assignments for clients.
He provides consultancy services in areas of financial management, management consultancy, project management, information system & knowledge management, and computerization of accounting system.
He has exposure to a wide variety of business organization, particularly in construction, housing development and manufacturing industries.
Tuesday, July 28, 2009
About Us
TST was established in 1992 as a professional consulting firm providing taxation and business advisory services. From a humble beginning, our consulting firm has grown to become an envied entity providing a full range of multi discipline services.
TST Tax Academy (TTA) is a tax training division of TST Consulting. TTA provides the tax training programmes to ensure your esteem organizations obtain the tax efficiency in your current tax compliance, in addition, we can assist you to prepare for any possible tax audit in the future.
We have assembled a group of uniquedly qualified tax consultants who possess the specialise tax knowledge. They are professionals dedicated to train and serve your esteem organizations. Our training programmes are based on well designed, relevant and successfully runned programmes.
TST Tax Academy (TTA) is a tax training division of TST Consulting. TTA provides the tax training programmes to ensure your esteem organizations obtain the tax efficiency in your current tax compliance, in addition, we can assist you to prepare for any possible tax audit in the future.
We have assembled a group of uniquedly qualified tax consultants who possess the specialise tax knowledge. They are professionals dedicated to train and serve your esteem organizations. Our training programmes are based on well designed, relevant and successfully runned programmes.
Thursday, March 19, 2009
Tax Deductions - Section 33 (Part 1)
Tax Deductions from Gross Income - Section 33
By Tan Thai Soon
Section 33 (1)
The adjusted income of a person from a source for the basis period by deducting from the gross income of that person from that source for that period all out goings and expenses wholly and exclusively incurred during that period by that person in the production of gross income from that source, including:-
(a) Interest expense on money borrowed;
(b) Rent;
(c) Repairs and renewals.
Comment:
(1) Allowable expenses must be revenue expenses and not capital in nature. For example, goodwill. fixed asset purchase, purchase of license and franchising fees are capital in nature, therefore not deductible;
(2) Allowable expenses must be wholly and exclusively to derive gross income. It follows that the "motive and object" must be incurred in the production of income in order to meet the deductibility test;
(3) The allowable expenses must "incurred" in the year concerned and "incurred" means expenses paid and payable. Similarly, the liability must be real and not "anticipated losses or contingent liabilities" (Edward Collins & Sons Ltd vs. CIR); and
(4) It must be allowable by common law or a provision in the law. Section 34 provides a special provisions on tax deductions. On the other hand, Section 39 provides special provisions where expenses are not allowed as a deduction against the gross income.
By Tan Thai Soon
Section 33 (1)
The adjusted income of a person from a source for the basis period by deducting from the gross income of that person from that source for that period all out goings and expenses wholly and exclusively incurred during that period by that person in the production of gross income from that source, including:-
(a) Interest expense on money borrowed;
(b) Rent;
(c) Repairs and renewals.
Comment:
(1) Allowable expenses must be revenue expenses and not capital in nature. For example, goodwill. fixed asset purchase, purchase of license and franchising fees are capital in nature, therefore not deductible;
(2) Allowable expenses must be wholly and exclusively to derive gross income. It follows that the "motive and object" must be incurred in the production of income in order to meet the deductibility test;
(3) The allowable expenses must "incurred" in the year concerned and "incurred" means expenses paid and payable. Similarly, the liability must be real and not "anticipated losses or contingent liabilities" (Edward Collins & Sons Ltd vs. CIR); and
(4) It must be allowable by common law or a provision in the law. Section 34 provides a special provisions on tax deductions. On the other hand, Section 39 provides special provisions where expenses are not allowed as a deduction against the gross income.
Friday, December 26, 2008
IMPUTATION SYSTEM-S108 Credit Balance Account
Deduction of Tax from Dividends
By Tan Thai Soon
Section 108(1)
Where a dividend is paid or credited by a company to its shareholders, the company shall be entitled to deduct tax therefrom at the rate applicable to the company on the chargeable income for the year of assessment.
Comment:
a) The dividend is deemed to be derived from Malaysia:Section 14
b) Company will deduct a tax from the dividends and shareholders would received a net dividends.
c) Company will maintains S 108 credit balance account.
S 108 account increases when company paid corporate tax or has credits (s110) from dividend income. On the other hand, S108 account reduced when there is a tax refunded and/or a dividends has been paid in the basis period.
d) S108 credit balance account is carried forward into the following year
e) Company need to maintains it S108 account by submitting From R to Inland Revenue Department (IRD).
f) With effect from YA2008:i) no additional credit balance to be added to the existing s108 account; ii) company can elect to disregard s108 account balance by filing Form 50 with IRD; or iii) continue to maintain S108 balance (as at 31.12.07) until nil balance or end of the transitional period (as at 31.12.2013).
g) With effect from YA2014: i) all unutilized S108 credit balance will be forfeited; ii) company does not need to maintain S108 account; and iii) all company will move from the existing imputation system to single tier tax system (STS).
By Tan Thai Soon
Section 108(1)
Where a dividend is paid or credited by a company to its shareholders, the company shall be entitled to deduct tax therefrom at the rate applicable to the company on the chargeable income for the year of assessment.
Comment:
a) The dividend is deemed to be derived from Malaysia:Section 14
b) Company will deduct a tax from the dividends and shareholders would received a net dividends.
c) Company will maintains S 108 credit balance account.
S 108 account increases when company paid corporate tax or has credits (s110) from dividend income. On the other hand, S108 account reduced when there is a tax refunded and/or a dividends has been paid in the basis period.
d) S108 credit balance account is carried forward into the following year
e) Company need to maintains it S108 account by submitting From R to Inland Revenue Department (IRD).
f) With effect from YA2008:i) no additional credit balance to be added to the existing s108 account; ii) company can elect to disregard s108 account balance by filing Form 50 with IRD; or iii) continue to maintain S108 balance (as at 31.12.07) until nil balance or end of the transitional period (as at 31.12.2013).
g) With effect from YA2014: i) all unutilized S108 credit balance will be forfeited; ii) company does not need to maintain S108 account; and iii) all company will move from the existing imputation system to single tier tax system (STS).
Thursday, November 27, 2008
Gross Income From An Employment
Gross Income from an Employment
By Tan Thai Soon
The following shall be treated as gross income from an employment.
Section 25 (1)
Where gross income from an employment:-
(a) is not receivable in respect of any particular period; and
(b) first becomes receivable in the relevant period,
it shall when received be treated as gross income of the relevant person for the relevant period.
Comment
The assessability of employment income is on receipt basis, and "received" means legal entitlement of the income or is able to obtain the receipt on demand e.g. Salary. However, any bonus proposed in 2008 but not receive in the same year will not be assessed as gross income in that particular year.
Section 25(2)
Where gross income from an employment is receivable in respect of the whole of the relevant period it shall when received be treated as gross income of the relevant person for the relevant period.
Section 25(3)
Where gross income fails to be treated under subsection (1) and (2) as gross income for the relevant period, then if its receipt first becomes known to the DG on a day more than 5 years after the end of the relevant period, it shall be treated for the year of assessment which begin 5 years before the beginning og the year of assessment which includes that day.
Comment
This section serves as an anti avoidance provision to prevent loss of revenue, if the DG discovers the receipt of employment income is time barred.
By Tan Thai Soon
The following shall be treated as gross income from an employment.
Section 25 (1)
Where gross income from an employment:-
(a) is not receivable in respect of any particular period; and
(b) first becomes receivable in the relevant period,
it shall when received be treated as gross income of the relevant person for the relevant period.
Comment
The assessability of employment income is on receipt basis, and "received" means legal entitlement of the income or is able to obtain the receipt on demand e.g. Salary. However, any bonus proposed in 2008 but not receive in the same year will not be assessed as gross income in that particular year.
Section 25(2)
Where gross income from an employment is receivable in respect of the whole of the relevant period it shall when received be treated as gross income of the relevant person for the relevant period.
Section 25(3)
Where gross income fails to be treated under subsection (1) and (2) as gross income for the relevant period, then if its receipt first becomes known to the DG on a day more than 5 years after the end of the relevant period, it shall be treated for the year of assessment which begin 5 years before the beginning og the year of assessment which includes that day.
Comment
This section serves as an anti avoidance provision to prevent loss of revenue, if the DG discovers the receipt of employment income is time barred.
Saturday, October 25, 2008
Gross Income From A Business
Gross Income from Business
Section 24(1)
Where a debt owing in respect of
a) any stock in trade sold
b) any services rendered
c) the use or enjoyment of any property
the amount of the debt shall be treated as gross income.
Comment
This section use accrual concept is in comparable with the accounting principle.
Section 24(2)
The market value of any stock in trade which has been taken for private purposes without payment or any stock withdrawn from business for gifts or donation other than disposal.
Comment
A furniture trader give a compliment furniture sofa set to his relative for wedding gift. A sum equal to the market value of the furniture set will be added back to gross income for tax purpose.
Section 24(5)
Interest income of an investment dealing business or a money lending business.
Section 30(1)
Recovery of a bad debt which has previously been allowed as a deduction in ascertaining the adjusted income.
Section 30(4)
Waiver of debts by creditors which pertaining to any amount of expenditure previously allowed as a deduction in ascertaining the adjusted income.
Comment
Any purchases from trade creditor will reduce the gross income, therefore any debts written off by the creditor should be added back to increase the gross income for tax purpose.
Section 24(1)
Where a debt owing in respect of
a) any stock in trade sold
b) any services rendered
c) the use or enjoyment of any property
the amount of the debt shall be treated as gross income.
Comment
This section use accrual concept is in comparable with the accounting principle.
Section 24(2)
The market value of any stock in trade which has been taken for private purposes without payment or any stock withdrawn from business for gifts or donation other than disposal.
Comment
A furniture trader give a compliment furniture sofa set to his relative for wedding gift. A sum equal to the market value of the furniture set will be added back to gross income for tax purpose.
Section 24(5)
Interest income of an investment dealing business or a money lending business.
Section 30(1)
Recovery of a bad debt which has previously been allowed as a deduction in ascertaining the adjusted income.
Section 30(4)
Waiver of debts by creditors which pertaining to any amount of expenditure previously allowed as a deduction in ascertaining the adjusted income.
Comment
Any purchases from trade creditor will reduce the gross income, therefore any debts written off by the creditor should be added back to increase the gross income for tax purpose.
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