INCOME TAX ACT 1967 (ACT 53) PART IV - PERSONS CHARGEABLE
Section 74. Executors.
(1) Where an individual dies in the basis year for a year of assessment, his executors shall be assessable and chargeable to tax for that year of assessment, for the following year of assessment and, whenever necessary, for any previous year of assessment in respect of the chargeable income of that individual for any such year of assessment; and, where they are so assessable and chargeable, they shall be assessable and chargeable to tax in like manner and to the like amount as the individual would be assessed and charged to tax if he had not died.
(2) For the purposes of subsection (1)-
(a) the reference therein to the chargeable income of any individual for any year of assessment shall be taken to be such chargeable income for that year as he would have had if he had not died in respect of any income of his arising before his death and in respect of any income received by his executors which if he had not died and if it had been received by him (at the time it was received by his executors) would have been taken into account in arriving at that last-mentioned chargeable income; and
(b) all rights and duties which would have attached to him with respect to that last-mentioned chargeable income as he would have so had shall pass to his executors.
(3) Any assessment or additional assessment to be made in consequence of the foregoing subsections shall be made not later than the end of the third year of assessment following the year of assessment in the basis year for which-
(a) the individual died;
(b) the estate duty affidavit (if any) was filed in Malaysia with respect to any part of the estate of that individual; or
(c) where such an estate duty affidavit has been filed, the last of any corrective affidavits relating to that estate duty affidavit was filed, being the basis year in which the last of those events took place.
4) The amount of any tax payable by the executors of a deceased individual by virtue of this section (together with any penalty which may be incurred under subsection 103 (4)) shall be debt due from and payable out of the estate of that deceased individual.
(5) The executors of a deceased individual shall not distribute any of the assets of his estate unless they have made provision (in so far as they are able to do so out of those assets) for the payment in full of any tax which they know or might reasonably except to be payable by them under this section.
(6) Any executors who fail to comply with subsection (5) shall be jointly and severally liable to pay a penalty equal to the amount of the tax to which the failure relates.
(7) Subsection 125 (2) shall apply to a penalty imposed by subsection (6) of this section as it applies to a penalty imposed by subsection 112 (3) or 113 (2).
[Shall have effect for the year of assessement 2004 and subsequent years of assessment]
(4) The amount of any tax payable by the executors of a deceased individual by virtue of this section (together with any penalty which may be incurred under section 103(3), (4), (5), (6), (7) or (8)) shall be debt due from and payable out of the estate of that deceased individual.
