Pricing Convertible Securities - The Malaysian Institute Of Certified ...

10 FEATUREThe Malaysian Accountantreceipt of the incentives even though they have not received a copyof Form CP58 (2011) from the payer company.Note that where a company fails to complete and render acopy of the Form CP58 (2011) to the relevant agent, dealer ordistributor within the said stipulated period, the company shall beguilty of an offence and shall upon conviction, be liable to a fineranging from RM200 to RM 2,000 or to an imprisonment for a termnot exceeding 6 months, or to both.There is no requirement to file the Form CP58 with the IRBbut the company is required to keep a copy of the duly completedforms (for a period of 7 years from the end of the calendar year inrespect of which the payments are made) for audit purposes.Therefore, forms, which were previous, submitted to Block 9, JalanDuta (i.e. Technical Department) e.g. application forms forreinvestment allowance and double deductions should now besubmitted to the aforementioned address.It should be noted that the tax payment counters at the JalanDuta IRB branch, the Kuala Lumpur IRB Collection branch and theNon-Resident IRB branch as well as the Corporate TaxDepartment located at Blok 8A and Blok 11 of the Jalan DutaGovernment Complex were not involved in the relocation.Prescribed Form CP58 (2011) - Statement of Monetary andNon-Monetary Incentive Payment to an Agent, Dealer orDistributor [Pursuant to Section 83A, Income Tax Act 1967]Section 83A enacted under the Finance Act 2012 providesthat every company is obliged to prepare Form 58 (2011) to eachof its agents, dealers or distributors. The Form CP58 sets outdetails of incentive payments made to agents, dealers ordistributors, in both monetary and non-monetary form. The saidform can be obtained from the IRB’s website.The information to be provided in the form includes thefollowing:• Payer’s information• Recipient’s information (resident/ non-resident)• Particulars of incentive payment• Monetary or non-monetary valueThe deadline for providing the Form 58 (2011) to the respectiveagent, dealer or distributor is not later than March 31 in the yearfollowing the relevant year. However, for payments made duringthe period from January 1, 2011 to December 31, 2011, anextension of time until May 31, 2012 has been granted for thecompletion of the form. Notwithstanding the extension of time,recipients of the incentive payments are required to report theFiling Programme for Income Tax Return Forms (ITRF) In theYear 2012The filing due dates for ITRF due in the calendar year 2012has been outlined in the filing programme. The following arehighlighted:• A grace period of 15 days is given to taxpayers who submit viae-filing. This grace period also applies to payment of balanceof tax payable under subsections 103(1) but does not apply topayment under subsection 103(1A) and 103(2) of the ITA.• A grace period of 3 days is given to taxpayers who opt for“manual filing” provided that the ITRF are sent by post. Thegrace period of 3 working days is also applicable to payment ofbalance of tax payable under subsection 103(1) of the ITA.• There is no grace period for “manual filing” by hand.• Taxpayers who intend to request for an extension of time withregards to the submission of the ITRF or payment of balance oftax payable should send separate applications to the Directorof Policy and Operations Division, IRB at Cyberjaya. Suchrequest must be made at least 15 days before the due date.Each application should be supported by strong and validreasons and the IRB’s decision will be based on the merits ofeach case.• Filing of Form R for YA2010 and subsequent years onwards isnot mandatory for companies, which commenced operationsafter December 31, 2007.• When requesting for tax refunds, taxpayers are required tomanually submit the relevant attachments (Lampiran) andworksheets (Helaian Kerja).Thang Mee Lee is an Executive Director at TAXAND MALAYSIASdn Bhd, which is part of the TAXAND Global Organisation, thefirst global organisation of independent tax advisers with apresence in nearly 50 countries. She can be contacted atmlee@taxand.com.my. The views expressed are the personalviews of the writer.M a r c h - A p r i l 2 0 1 2 w w w . m i c p a . c o m . m y