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HISTORY TAXATION 1919-1967 - Coggle Diagram
HISTORY TAXATION 1919-1967
HISTORY AND BACKGROUND
1910 was withdrawn the following year as it did not receive the support of the tax-paying public was introduced by the Straits Settlements Legislative Council
The Straits Settlements comprised Singapore, Malacca, Penang with such as hostile reception characterized subsequent attempts (1920,1941-1945)
In 1917 on a temporary basis in Malaya (as it was then known until 1963), was clouded with uncertainty as it faced strong opposition a tax from the general public (Subramaniam, 1979).
Introduce an income tax system until the introduction of income tax in its modern form in 1948.
Taxation included excise and import duties, and land taxes
In 1947, R.B.Heasman (Special Income Tax Adviser to the Governments of Malaya and Singapore
The upsurge in rubber production after 1900 and tax imposed on rubber exports in 1907
The Straits Settlements prior to 1948 were interrupted by the two world wars.
Indirect taxation was the sources of revenue depended heavily by Malaysia
Income taxes were introduced at various time and for various purpose in the preceding 30 years.
Type of taxes - direct taxation & indirect taxation
1941 - 1945
1941 - a tax on profit and income was reimposed in the Straits Settlements
Ordinance wa renewed year futher attempts to collect taxes during were forestalled by The Japanese Occupation of Malaya
Collection taxes during the Japanese Occupation from 1942 until 1945 was not well documented (Subramaniam 1979)
Estimated the dolar sign was used between $70,000 and $80,000 worth of assessments were made and collecting the japanese occupation period (Chin Kee On, 1976)
POST 1945
the Special Income Tax Adviser to the Governments of Malaya and Singapore
1946 - Heasman was appointed to draft a tax legislation for Malaya
1947 - Heasman completed a comprehensive report
1 January 1948 - the Income Tax Ordinance 1947 took effect (beginning of new era of income taxation on a permanent basis in Malaya since 38 years after the proposal was first mentioned in the Straits Settlements)
INCOME TAX ORDINANCE 1947
based on Model Colonial Territories Income Tax Ordinance 1922 (UK) which was designed for the British colonies
tax laws of Commonwealth countries were initially based on this model legislation
taxability of income was covered under sec 31 ITO
Heasman's Report (1947) was severely criticised by Wallich (1948)
Wallich took to task Heasman's view that there was no reason to believe that Asians would evade the tax more than others
1948 - $7541000 paid by individuals under the 1941 War Tax Ordinance, $7 paid by Europeans for every $8 paid by the rest of the population caused by outraged from Heasman's assertions
INCOME TAX ACT 1967
was originally the Income Tax Ordinance 1947 before repealed and replaced by the Income Tax Act 1967
came into effect on 1 January 1968
consolidated three laws of income taxation then existing in Malaysia
Income Tax Ordinance 1947 (Peninsular Malaysia)
Sabah Income Tax Ordinance 1956 (Sabah)
Sarawak Inland Revenue Ordinance 1960 (Sarawak)
this three separate taxation systems continued in existence until the introduction of ITA 1967
1917 - 1922
unfavourable reception of the 1910 draft bill
concealment of proposals to introduce income tax
War Tax Ordinance was introduced and remained in force up to the year 1919
1920 - conversion of War Tax Ordinance into the Income Tax Ordinance 1920 (effective from 1 January 1920)
1922 - the taxpayers opposed the Ordinance because rather than to advance the war efforts of the Imperial Government, the revenue was used to meet local expenditure
result - premature repeal of the Ordinance
1923 - 1940
no income tax in the Straits Settlements