KOTA KINABALU: The Inland Revenue Board of Malaysia's appointment of Sabah and Sarawak representatives as board members will be further validated through legal enforcement.
Minister in the Prime Minister's Department (Sabah and Sarawak Affairs) Datuk Armizan Ali, said the decision would be implemented through the presentation of the Inland Revenue Board of Malaysia (Amendment) Bill 2023 during the upcoming 15th parliament sitting that convenes from Oct 9 to Nov 30.
He added the presentation aligned with the decision of the Cabinet Meeting on June 5, 2023, which affirmed the proposal of the Implementation Action Council for the 1963 Malaysia Agreement (MTP-MA63), which had convened on Jan 19, 2023, in Kuching, Sarawak.
It was chaired by Prime Minister Datuk Seri Anwar Ibrahim, Sabah Chief Minister Datuk Seri Hajiji Noor and Sarawak Premier Tan Sri Abang Johari Tun Openg.
"That proposal was raised with the aim of restoring the original status of the representation of both states in this institution since the formation of the Federation of Malaysia in 1963.
"This demand is also in line with the provisions regarding paragraph 24(1) of the Financial Provisions, inter-taxation as contained in the sub-Governmental Committee (IGC) Report in 1962," he said during a forum held at Menara Kinabalu here.
Armizan, who is also Papar member of parliament, said the proposal for the permanent representation of the State Governments of Sabah and Sarawak as Members of the LHDNM was first raised in the official MA63 implementation negotiation platform by Hajiji and Johari during the Special MA63 Council Meeting on Oct 18, 2021.
The membership of representatives from Sabah and Sarawak in the Malaysian Board of Income Tax was implemented by the Federal Government at that time.
At the time, the implementation was based on provisions in the law through the Order of 1964, which was founded on the Income Tax Ordinance 1947 of the States of Malaya, the Income Tax Ordinance 1956 of Sabah, and the Inland Revenue Ordinance 1960 of Sarawak.
However, the provision regarding the membership of representatives from Sabah and Sarawak was discontinued when the Malaysian Board of Income Tax and all related laws were abolished after all matters related to income tax were regulated by the Inland Revenue Department of Malaysia starting from 1967.
That function was subsequently continued by LHDNM, which was established in 1996 under Act 533.
"The amendment of Act 533, which provides for the permanent membership of representatives from the State Governments of Sabah and Sarawak, reflects the commitment of the Federal Government under the leadership of Anwar to address outstanding issues related to MA63.
"Thereby respecting and recognising the rights and interests of Sabah and Sarawak within the Federation of Malaysia."