Chapter 8 - Special cases

Section 54A. Exemption of shipping profits.

(1) Subject to the following subsections, where a person who is resident for the basis year for a year of assessment carries on the business of-

the statutory income for that year of assessment from that business shall be exempt from tax.
[Subs. Act 591:s.7]

(2) In determining the income of a person under this section-

[Subs. Act 293:s.13]
(3) The following provisions shall apply to a person carrying on a business in respect of which his income is exempt under subsection (1)-
[Am. Act 591:s.7]
Provided that where expenses have been incurred by that person which are not directly attributable to a Malaysian ship, the Director General may allocate as expenses such amounts as might reasonably and properly have been incurred in the normal course of his business in respect of such ship;

[Ins. Act 293:s.13]

(4) That person shall deliver to the Director General a copy of the accounts referred to in subsection (3) made up to any date specified by him whenever called upon to do so by notice in writing.

[Ins. Act 293:s.13]

(5) Notwithstanding the foregoing provisions of this section, where it appears to the Director General that-

ought not to have been so exempt, the Director General may at any time-
Provided that the direction given under this paragraph shall be deemed to be a notice of assessment for the purposes of section 99.

[Ins. Act 293:s.13]

(6) For the purposes of this section-

"Malaysian ship" means a sea-going ship registered as such under the Merchant Shipping Ordinance 1952 [Ord. 70 of 1952], other than a ferry, barge, tug-boat, supply vessel, crew boat, lighter, dredger, fishing boat or other similar vessel;

[Ins. Act 309:s.13]

"person" includes a partnership.
[Am. Act 591:s.7]

Related reading:
[Act 591:s.7; Act 293:s.13; Act 309:s.13]

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