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GROUP LOSS RELIEF - Coggle Diagram
GROUP LOSS RELIEF
CONDITIONS BOTH SURRENDERING AND CLAIMANT CO
claimant co must have defined agreggate inc for that YA
incorporated in Mas
Resident in Mas for YA
have paid up o/s capital of >RM2.5 million BOPB
have same 12m years ends
-subject to tax at 24%
related co throughout BP for YA and 12m period immediately preceding BP
must have CYBL to surrender
related co satisfy 2 conditions
first lvl test
at least 70% paid up ordinary cap of claimant co directly/indirectly owned by surrendering co
at least 70% paid up ordinary cap of surrendering co and claimant co directly/indirectly owned by another incorporated and R in Mas
at least 70% paid-up ordinary capital of surrendering directly/indirectly owned by claimant co
second lvl test
co must be beneficially entitled(direct/indirect) at least 70% of residual profits and assets of other co in proportion to equity interest
CONDITIONS SURRENDERING CO
with effect YA 2019, surrendering co given time limit of 3 consecutive YAs to surrender its CYL
immediately following 12m BP for YA
immediately following second BP the surrendering co first commence
BP for YA in which co first commence operations is less or more than 12m
second BP consists of period 12m
must be newly start up co
no group relief allowed
excess ITA/pioneer loss to c/f
WAYS SURRENDERING LOSS
single surrendering co surrender loss to more than one claimant
adjusted loss must fully deducted to first claimant b4 any adjusted loss surrendered to second claimant
single surrendering co surrender loss to single claimant
both surrendering & claimant shall ascertain order of priority
co claiming following incentives cannot claim group relief
ITA
RA
Pioneer status
filled in revised tax comp
adjusted loss available for surrender- amount already surrender
surrendering co not allowed to revise loss already surrendered to claimant co
surrendering co has to c/f diff adjusted loss
tax treatment
cannot surrender
loss b/f cannot be surrendered
both current year CA+CA b/f cannot be surrendered
surrendering co
can surrender =<70% excess CYBL after deduct an amount equal to aggregate income