You Plant These Beautiful Flowers?

This case focuses on Classic Japan (M) Sdn Bhd (CJSB), a company involved in the business of collecting, processing and selling fresh flowers to its holding company in Japan. CJSB considered itself as an agriculture company which was entitled to claim the Allowance for Increase Exports (AIE) and Industrial Building Allowance (IBA). These claims had raised doubt to the IRBM in terms of the eligibility of the company to claim such allowances under the Income Tax Act 1967. Furthermore, this involved the issue of non-compliance under the Income Tax Act 1967. Overall, this case study reflected the importance of understanding the tax laws and regulations concerning the requirements for a company to be classified as an agriculture company under paragraph 3 PU (A) 128 Income Tax (Allowance for Increased Exports) Rules 1999 as amended by PU (A) 309 Income Tax Act (Allowance for Increased Exports) (Amendments) Rules 2003. It is also important for a company to know the eligibility to claim AIE for an agriculture company under PU (A) 309 of the Income Tax (Allowance for Increased Exports) (Amendments) Rules 2003 as well as the eligibility to claim IBA under paragraph 63 Schedule 3 and paragraph 37C of the Income Tax Act 1967. This case study also requires the knowlegde regarding the penalty structure under Subsection 113(2) of the Income Tax Act 1967 and the knowledge regarding tax non-compliance.