IRB tax my other income !
๐๐จ ๐ฒ๐จ๐ฎ ๐ค๐ง๐จ๐ฐ ๐๐๐ ๐ฐ๐ข๐ฅ๐ฅ ๐ญ๐๐ฑ ๐ฒ๐จ๐ฎ๐ซ ๐๐๐ฌ๐ฎ๐๐ฅ ๐ข๐ง๐๐จ๐ฆ๐ ๐ฐ๐ก๐ข๐๐ก ๐ญ๐๐ฑ๐ฉ๐๐ฒ๐๐ซ๐ฌ ๐๐ฅ๐ฐ๐๐ฒ๐ฌ ๐๐ฌ๐ฌ๐ฎ๐ฆ๐ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ญ๐๐ฑ๐๐๐ฅ๐?
๐Overview of casual profit/income
A casual profit is an income which, received by a person from an activity outside his ordinary trade or vocation, but which nevertheless is a profit or income item accruing to him by virtue of services rendered or a receipt payment from property not chargeable elsewhere.
๐Key takeaways:
You will understand: -
1. What is casual profit or income?
2. Tax treatment of casual profit or income based on real tax case.
๐Summary of learnings:
Casual profits or income is chargeable under section 4(f) of the Income Tax Act (ITA) 1967.
๐What is the casual profit or income?
Payments for services are income even where there is no repetition, such as the followings:
โ Commissions paid to a director for guaranteeing bank overdrafts or bank loans.
โ Brokerage fees
โ Introduction fees
โ Fees for the occasional hosting as the master of ceremony, fees for the occasional newspaper articles, or the giving ad-hoc lectures.
๐Tax treatment on casual profit or income based on real tax case
ABM v. KETUA PENGARAH HASIL DALAM NEGERI (PKCP (R) 780/2017)
IRB raised a tax query of the source of income arose to purchase an asset under taxpayer and his wife.
The source of income of RM750,000 is arriving from for introduction fees and this income was not reported.
Decision by The Court
The final judgement is the income of RM750,000 are taxable under section 4(f) ITA 1967.
๐Sources: http://phl.hasil.gov.my/pdf/pdfam/ABM_v_KPHDN_21012021.pdf
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