Thursday, 24 May 2018

The final 15 days of GST: FAQ

By Tratax - Thenesh, Renga & Associates.
This article was first published in in Tratax’s Tax e-Alert, 17 May 2018.

Q1: For purchases made in May, will I be entitled to claim input tax credit on the stock-in-hand as at 31st May 2018?
A1: Section 39 of GST Act grants credit in respect of input tax that is attributable made or to be made by the business. There is no need for the acquirer to make an onward taxable supply in the same taxable period. Any supply made in June is subject to zero GST, but is nevertheless a taxable supply. Hence, the entitlement for input tax credit in May 2018 (or earlier) pursuant to the normal mechanism of GST should not be disturbed.

Q2: Can a business continue to issue tax invoice after 31st May 2018?
A2: The business may issue “tax invoice” or “invoice” (or any equivalent document). However, no tax shall be charged on any tax invoice issued after 1st June 2018; given that section 33(10) of the GST Act stipulates that it is an offence to issue tax invoice with 6 percent GST on any zero-rated item.

Tuesday, 22 May 2018

GST to SST: Is it a simple journey?

By Thenesh Kannaa, a licensed GST Agent and author of Master GST Guide.
This article was first published in Tratax - Thenesh, Renga & Associates’ Facebook page, 11 May 2018.

The leaders of the present government have expressed commitment to abolish Goods and Services Tax (hereinafter “GST”), which was implemented effective 1st April 2015. Although no fixed dates have been announced, the momentum suggest that this would be sooner than later.

I firmly believe that enforcement bodies and the GST agents licensed by the government must assist in the implementation of the government’s policy, despite any differing views that one may have. There are many nitty-gritties involved in the process of dismantling GST. There are many potential technical issues which requires involvement of GST experts. Yes, that’s right - GST cannot be effectively dismantled without participation of accountants and GST agents.

The accountants and GST agents who passionately implemented GST in 2015 should now express the same passion to ensure the process of dismantling GST in 2018 is an effective one. Some may ask – “What is so difficult? – just revoke the GST Act la!”. Well, ponder upon the following ten matters.

Tuesday, 15 May 2018

Workplace discrimination

Authors: Donovan Cheah (Partner) and Adryenne Lim (Legal Executive) (Donovan & Ho)

In response to the news concerning the ban on wearing tudung imposed by hotel owners on employees, proposals to amend the Employment Act 1955 were put forward by the Human Resources Ministry to address, among others, the issue of workplace discrimination. The ban had rightfully sparked debate about the issue of workplace discrimination, and the proposal for amendment was certainly a much needed move to fill in the gaps of our existing laws.

Unfortunately, due to the recent dissolution of parliament, any amendments to the law will have to be shelved for the time being. While there is not yet any specific legislation to tackle the issue, can individuals nonetheless rely on existing laws for protection? Where does the law currently stand in terms of protection against discriminatory practices in the workplace?

Where we are right now?

Thursday, 3 May 2018

Something smelly, perhaps loud ... but nothing to see: what am I? Is farting bullying behaviour?

Author: James Mattson draws on over 20 years of employment and industrial law experience to provide advice and guidance that’s grounded in the real world. James views his relationship with clients as a partnership focused on delivering strong outcomes and positive productive workplaces.

We have a whopper of a story tell to you. In fact, it's a little ripper. Ever heard (of) the colleague who likes to fart at work? It would be surprising if, in your working life, you have not encountered some wind at work: the average healthy person farts about 14 times a day (so they say). I guess we all have a little body trumpet that will toot whether we like it or not.

The Victorian Supreme Court recently had to hear a case about, amongst other things, farting at work: Hingst v Construction Engineering (Aust) Pty Ltd (No 3) [2018] VSC 136. Justice Zammit was asked to determine whether farting was bullying behaviour. No doubt, this has been a lingering question left unresolved in industrial circles until late March 2018.

A keyword search identifies a number of past cases where older workers have been called "old farts" and intoxicated employees described as "pissed as a fart". There have been cases involving, believe it or not, defecation, but it appears there has been no dismissal for farting; that would be possibly "unAustralian".

In this bulletin, we (over) analyse this silent but deadly issue. Dropping our guts the odd pun is necessary. Despite the obvious humour, the case does provide some good lessons.

Wednesday, 25 April 2018

The ECRL GST controversy: Have the floodgates been opened?

Dave Ananth is a senior lawyer, a former Magistrate and advocate in Malaysia before taking up a position with the Inland Revenue Department in New Zealand as a Prosecutor. He now practises as a Tax Barrister, based in Auckland. He is an expert on Malaysian GST and a familiar speaker on the local Malaysian circuit. He also writes extensively on GST in Malaysia and other taxation issues in New Zealand.  He is a consultant for Wolters Kluwer on Malaysian GST. He can be reached at

The revelation that the Government has granted GST relief to China Communications Construction (ECRL) Company Sdn Bhd (CCCC) on the East Coast Rail Link (ECRL) project has led to heated discussions throughout Malaysia. Some arguments are utterly flawed as it does not take into account the legislation surrounding reliefs. This project is worth RM55 billion hence the GST impact is substantial, regardless of how one looks at it.

The Government has found itself defending its position.

Monday, 16 April 2018

Case Spotlight: Fired for Facebook Comments

Author: Donovan Cheah (Partner) (Donovan & Ho)

Should an employee be held accountable for postings made on their personal Facebook account? The recent Industrial Court case of Roslan Ayob v Parkroyal Penang Resort & Ors [Award No. 444 of 2018, 27 February 2018] deals with this issue.

Thursday, 12 April 2018

May 9 declared public holiday: do employers need to observe it?

Authors: Donovan Cheah (Partner) from Donovan & Ho

9th May 2018 has been declared as a public holiday. The Prime Minister’s Office said that the public holiday declaration is in accordance with Section 8 of the Holidays Act 1951. Section 8 of the Holidays Act allows the Minister, by notification in the Gazette or in any such manner as he thinks fit, to appoint any day as a public holiday or bank holiday in West Malaysia or in the Federal Territory. 
We already know that employers are statutorily required to give their employees a “reasonable period” to vote.

Now that polling day has been declared a public holiday, the next question is:
Can employers choose not to observe 9th May 2018 as a public holiday and ask their employees to come to work like normal, provided they still give their employees reasonable time off to vote?