Career Path

8. Specialized (Detailed Study Guide)

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LW

A Essential elements of the

Malaysian legal system

  1. Law and the legal system a) Explain the definition of law and types of law.[1] b) Explain the reception and application of English Law in Malaysia.[1] c) Explain the hierarchy, structure and operation of the courts.[1]
  2. Sources of law a) Explain the various sources of law in Malaysia.[1] b) Explain what is meant by case law and precedent including the importance and operation of the doctrine of binding judicial precedent.[2] c) Explain legislation and delegated legislation including the process by which law is passed by Parliament as well as the rationale for, advantages and disadvantages of delegated legislation.[1] d) Explain the rules and presumptions used by the courts in interpreting statutes.[1] e) Explain the concept and impact of human rights law and describe what constitutes human rights.[1] f) Explain the role and functions of the Human Rights Commission of Malaysia.[1] B The law of obligations
  3. Formation of a contract a) Analyse the nature of a simple contract.[2] b) Explain the fundamental rules governing an offer, including the distinction between an offer and an invitation to treat.[2] c) Explain the fundamental rules governing acceptance.[2] d) Explain the meaning of, and the need for, consideration and the exceptions to the need for consideration.[2] e) Explain adequacy and sufficiency of consideration.[2] f) Explain the doctrine of privity and its application in Malaysia.[2] g) Explain the concept of intention to create legal relations and the relevant presumptions that apply.[2] h) Explain the concept of capacity to contract and the effect of contracts entered into by those without such capacity.[2] i) Distinguish between void and voidable contracts and state the main circumstances when a contract may become void or voidable.[2]
  4. Content of contracts a) Distinguish terms from representations.[1] b) Define the various contractual terms and explain their effect.[1] c) Explain exclusion clauses, their nature, effect and control.[2]
  5. Discharge of contract, breach of contract and remedies a) Explain the ways in which a contract may be discharged.[2]

b) Explain the meaning and effect of a breach of contract.[2] c) Explain the types of remedies available for breach of contract.[2] d) Explain the rules relating to the award of damages.[2] e) Explain the equitable remedies for breach of contract and their effect.[2] 4. The law of torts and professional negligence a) Explain the meaning of tort.[1] b) Identify the major torts namely, negligence, defamation (libel and slander), trespass (to land, to property and to person) and nuisance (private and public). [1] c) Explain the tort of negligence including the duty of care and its breach.[2] d) Explain the meaning of causation and remoteness of damage.[2] e) Discuss defences to an action in negligence.[2] f) Explain the concept of professional negligence.[2] g) Explain and analyse the duty of care of accountants and auditors.[2] C Employment law 5. Contract of employment a) Distinguish between employees and the self-employed and explain the difference between a contract of service and a contract for services.[2] b) Explain the main rights and duties placed on the employer and employee under statute.[2] 6. Dismissal and redundancy a) Explain the concepts of termination, dismissal, redundancy and lay-off, including constructive dismissal.[2] b) Discuss the remedies available to those who have been unjustifiably dismissed.[2] D The formation and constitution of business organisations 7. Law of agency a) Define the role of the agent and give examples of such relationships paying particular regard to partners and company directors.[2] b) Explain the formation and termination of the agency relationship.[2] c) Discuss the authority of an agent.[2] d) Discuss the rights, duties and liabilities of a principal and an agent.[2] 8. Conventional partnerships and limited liability partnerships a) Demonstrate a knowledge of the legislation governing a conventional partnership and a limited liability partnership.[1] b) Discuss the formation of both a conventional and a limited liability partnership.[2] c) Discuss the nature of the relationship among partners and their duties towards one another in a conventional partnership.[2] d) Explain the authority of partners in relation to partnership activity in a conventional partnership.[2]

e) Explain the liability of various partners for partnership debts and liabilities in a conventional partnership.[2] f) Explain the termination of a conventional partnership.[2] g) Explain the fundamental characteristics of a limited liability partnership, e.g. separate legal personality and limited liability.[2] h) Describe the procedure for formation and registration of a limited liability partnership.[1] i) Explain the management of a limited liability partnership.[2] i) Discuss the conversion of conventional partnerships and private companies to limited liability partnerships.[2] k) Explain the winding up, dissolution and striking off procedure of a limited liability partnership.[2] 3. Corporations and legal personality a) Distinguish between companies, conventional partnerships, limited liability partnerships and sole proprietorships.[1] b) Explain the meaning and effect of limited liability.[2] c) Identify and distinguish different types of companies, especially public and private companies.[1] d) Illustrate the effect of separate legal personality and the veil of incorporation.[2] e) Recognise instances where separate personality will be ignored (lifting the veil of incorporation).[2] 4. The formation and constitution of a company a) Describe the procedure for registering companies, both public and private.[1] b) Explain the role and duties of company promoters, and the remedies available to the company for the breach of those duties.[2] c) Explain the meaning of, and the rules relating to, pre-incorporation contracts.[2] d) Describe the statutory books, records and returns that companies must keep or make.[1] e) Explain the constitution of a company and the need for it, if any. [2] f) Analyse the legal effect of a company’s constitution.[2] g) Explain the alteration of the constitution of a company (including the restrictions on such alteration).[2] E Capital and the financing of companies 5. Share capital a) Examine the different types of capital.[1] b) Illustrate the difference between various classes of shares.[1] c) Explain the procedure for altering class rights and the protection afforded to holders of class rights.[2] 6. Loan capital a) Explain the regulation of companies’ borrowing powers under statute.[1] b) Explain the meaning of loan capital and debentures.[2]

c) Distinguish between loan capital and share capital.[2] d) Explain the concept of a company charge, the differences between fixed and floating charges and why the floating charge is a vulnerable form of security.[2] e) Describe the need, and procedure, for registering company charges including the effect of the certificate of registration.[2] f) Explain the effect of non-registration of registrable charges.[2] g) Explain the main rules regarding priority of charges.[2] 3. Capital maintenance and dividend law a) Explain the doctrine of capital maintenance.[2] b) Discuss how a company may effect a reduction of capital.[2] c) Discuss the prohibition on the power of companies to purchase their own shares and to give financial assistance for the purchase of their own shares and the exceptions to it.[2] d) Explain the rules governing the distribution of dividends in both public and private companies.[2] F Management, administration and regulation of companies 4. Company directors a) Explain the role of the directors in the operation of a company and different types of directors, such as executive/non-executive and de jure, de facto and shadow directors.[1] b) Discuss the ways in which directors are appointed, the restrictions on appointment of directors, qualifications and disqualifications of directors, the removal of directors and their rights upon removal.[2] c) Distinguish between the powers of the board of directors, the managing director/chief executive and individual directors to bind their company. Explain: (i) the fiduciary duties (including duties of disclosure) and the duties of care, skill and diligence that directors owe to their companies under common law and statute; (ii) the application of the business judgment rule; (iii) the prohibition on companies giving loans to directors and connected persons and the exceptions thereto; and (iv) the statutory rules that regulate substantial property transactions between directors and their companies.[2] 5. Other company officers a) Explain the qualifications and the procedure for the appointment of a company secretary, the duties and powers of a company secretary, and when a person may be disqualified to act as a company secretary.[2] b) Discuss the appointment and removal procedure relating to, and the duties and powers of, a company auditor, and their subsequent removal or resignation.[2] 6. Company meetings and resolutions a) Distinguish between the different types of company meetings.[1] b) Explain the procedure for calling and conducting company meetings.[1]

c) Explain the right of a member to appoint a proxy and the rights of a proxy at a meeting.[1] d) Distinguish between the different types of company resolutions.[2] G Insolvency and corporate restructuring

  1. Liquidation of companies a) Explain the meaning of, and procedure involved in, voluntary liquidation, including when winding up is deemed to have commenced and the effects of the commencement.[2] b) Explain the meaning of, and procedure involved in, compulsory liquidation including who may petition for a compulsory winding up, the grounds for the petition, when a compulsory winding up is deemed to have commenced and the effects of a commencement of compulsory winding up, and a winding up order of the court.[2]
  2. Corporate restructuring a) Examine the importance and application of schemes of arrangement and reconstructions under statute as an alternative to winding up, including the corporate rescue schemes, namely the corporate voluntary arrangement and judicial management.[2] b) Discuss the role, duties and liabilities of receivers and managers.[2] H Corporate fraudulent and criminal behaviour
  3. Fraudulent and criminal behaviour a) Recognise the nature of and legal control over insider trading under statute.[2] b) Recognise the nature of and legal control over money laundering.[2] c) Recognise the nature of and legal control over corruption and bribery.[2] d) Discuss potential criminal activity in the operation, management and winding up of companies.[2] e) Recognise the nature of and legal control over fraudulent and wrongful trading.[2]

TX-MYS

A The Malaysian tax system and its administration

  1. The overall function and purpose of taxation in a modern economy a) Describe the purpose (economic, social etc) of taxation in a modern economy.[2] b) Identify the different types of capital and revenue tax.[1] c) Explain the difference between direct and indirect taxation.[2]

  2. Principal sources of revenue law and practice a) Describe the overall structure of the Malaysian tax system.[1] b) State the different sources of revenue law.[1] c) Explain the difference between tax avoidance and tax evasion.[1] d) Explain the need for an ethical and professional approach.[2] Excluded topics • Anti-avoidance legislation.

  3. The systems for self-assessment/ assessment and the making of returns a) Explain and apply the features of the self-assessment system as it applies to individuals.[2] b) Explain and apply the features of the self-assessment system as it applies to companies.[2] c) Explain the responsibilities and obligations of employers under the Income Tax Act.[2] d) Explain the obligations of taxable persons for the purposes of sales and services tax (SST).[2]

  4. The time limits for the submission of information, claims and payment of tax, including payments on account a) Recognise the time limits that apply to the filing of returns and the making of claims.[2] b) Recognise the due dates for the payment of tax under the self-assessment system.[2] c) Recognise the due dates for the payment of sales and services tax (SST).[2] d) Compute payments on account and balancing payments/repayments for individuals. [2] e) Explain how and when companies are required to make a tax estimate/revised estimate. [2] f) List the information and records that taxpayers need to retain for tax purposes.[1]

  5. Withholding of tax at source a) Describe the obligations of persons to withhold tax on making certain types of payment to non-residents and explain the consequences of non-compliance or late compliance.[2]

  6. The procedures relating to enquiries, appeals and disputes a) Explain the circumstances in which the Director General of Inland Revenue can enquire into a self-assessment tax return.[2] b) Explain the procedures for dealing with appeals and disputes.[1]

  7. Penalties for non-compliance a) Calculate penalties on overdue income tax.[2] b) Compute the penalties that can be charged on underestimates of income tax.[2] c) Compute the penalties that can be charged on a person other than a company when the tax payable under an assessment exceeds the total of the instalments payable resulting from an application by the taxpayer to vary the instalment payment.[2] d) Explain the circumstances in which late registration penalties apply for sales and service tax (SST) purposes.[2] e) Explain the circumstances in which late payment penalties apply for sales and service tax (SST) purposes.[2] f) Understand and compute the fines for an incorrect SST return and tax evasion and fraud.[2] B Income tax liabilities (individuals)

  8. The scope of income tax a) Explain how the residence of an individual is determined.[1] b) Recognise the income of non-residents which is subject to withholding tax.[2] c) Foreign income.[2] Excluded topics • Double taxation relief. • Income from trusts and settlements.

  9. Income from employment a) Recognise the factors that determine whether an engagement is treated as employment or self-employment.[2] b) Recognise the basis of assessment for employment income.[2] c) Explain the basis period to which gross income from an employment is related.[2] d) Explain the income derived/deemed derived from Malaysia.[2] e) Compute the statutory income.[2] f) Recognise the allowable deductions, including travelling expenses.[2] g) Explain the Monthly Tax Deduction (MTD) system.[1] h) Compute the amount of benefits assessable.[2] i) Discuss the prescribed value method of calculating car benefits.[2] j) Recognise benefits assessable under s.13(1)(a) and s.13(1)(b) respectively.[2] k) Explain the tax treatment of living accommodation provided by an employer.[2] l) Explain and calculate lump sums received by employees, including retirement lump sums, golden goodbyes, service excellence awards and long service awards.[2] Excluded topics • Share and share option incentive schemes for employees. • The formula method of calculating car benefits. • Payments on the termination of employment received by employees.

  10. Income from self-employment a) Recognise the basis of assessment for self-employment income.[2] b) Describe and apply the badges of trade.[2] c) Recognise the expenditure that is allowable in calculating the adjusted income.[2] d) Explain the treatment of domestic or private expenses and the private use of a car.[2] e) Recognise the expenditure that is specifically not allowable in calculating the adjusted income.[2] f) Compute the statutory income from a business source.[2] g) Capital allowances i) Define plant and machinery for capital allowances purposes.[1] ii) Compute annual allowances and initial allowances.[2] iii) Compute capital allowances for motor cars.[2] iv) Compute balancing allowances and balancing charges.[2] v) Explain the treatment of small value assets.[2] vi) Define an industrial building for industrial buildings allowance purposes.[1] vii)Compute industrial buildings allowance.[2] viii) Compute the balancing allowance or balancing charge on the disposal of an industrial building. [2] ix) Compute agriculture allowances and charges.[2] h) Relief for business losses i) Understand how relief for current year adjusted losses can be claimed against aggregate income.[2] ii) Explain how unabsorbed adjusted losses can be carried forward.[2] iii) Understand how unabsorbed adjusted losses brought forward can be claimed against the total amount of statutory income of all businesses.[2] i) Partnerships i) Define partnership and explain how income from a partnership is assessed to tax.[2] ii) Compute the statutory income from a partnership for each partner.[2] iii) Compute the statutory income for each partner following a change in the profit sharing ratio.[2] iv) Compute the statutory income for each partner following a change in the membership of the partnership.[2] v) Describe the relief available to a partner in respect of an adjusted loss.[1] Excluded topics • Research and development capital expenditure incentives. • Tax relief for increased exports. • Capital allowances on a disposal subject to control. • Clawback provisions for disposals within two years of acquisition. • Forest expenditure. • Capital expenditure on mines. • Expenditure on prospecting operations. • Taxation of special types of activity. • Taxation of special persons. • Taxation of Islamic instruments and transactions. • Tax incentives. • Limited liability partnerships. • Business trusts.

  11. Income from investments and other sources a) Compute the income from each source i) Dividends, interest or discounts.[2] ii) Rents, royalties or premiums.[2] iii) Pensions, annuities or other periodical payments not falling under any of the foregoing paragraphs.[2] iv) Gains or profits not falling under any of the foregoing paragraphs.[2]

  12. The comprehensive computation of chargeable income and income tax liability a) Prepare a basic income tax computation involving different types of income.[2] b) Calculate the amount of personal reliefs and other deductions for an individual, and for a married couple under joint/separate assessment.[2] c) Compute the amount of income tax payable under joint/separate assessment.[2] d) The taxability of maintenance and alimony received and reliefs for the payments.[2]

e) Compute tax rebates.[2] f) Recognise the deductions allowable against aggregate income.[2] Excluded topics • The income of minor children. 6. The use of exemptions and reliefs in deferring and minimising income tax liabilities a) Explain and compute the relief given for insurance premiums.[2] b) Describe the relief given for contributions to approved provident funds.[1] c) Explain how a married couple can minimise their tax liabilities.[2] d) Explain the tax implications of a married couple under joint/separate assessment.[2] C Income tax liabilities (companies) 7. The scope of income tax a) Define the terms ‘basis year’, ‘basis period’ and ‘accounting period’.[1] b) Determine the basis period i) Recognise the factors that will influence the choice of accounting date.[2] ii) Determine the basis period on the commencement of operations.[2] c) Explain how the residence of a company is determined.[2] d) Describe and apply the badges of trade.[2] Excluded topics • Change of accounting date. • Group relief for losses. • Investment companies. • Companies in receivership or liquidation. • Reorganisations. • The purchase by a company of its own shares. • Taxation of special types of activity. • Taxation of special persons. • Taxation of Islamic instruments and transactions. • Tax relief for increased exports. • Tax incentives.

  1. Income chargeable to income tax a) Recognise the expenditure that is allowable in calculating the adjusted income.[2] b) Explain how relief can be obtained for pre-commencement expenditure.[1] c) Compute capital allowances (as for income tax liabilities of individuals).[2] d) Compute income from business and non business sources.[2] e) Recognise the expenditure that is allowed for double deduction in calculating the adjusted income.[2] f) Explain the treatment of approved donations and other deductions that can be set off against the aggregate income.[2] g) Understand how adjusted losses can be carried forward.[2] h) Understand how current year adjusted losses can be claimed against the aggregate income of the current basis period.[2] i) Recognise the expenditure that is specifically allowed/disallowed under the provisions of the Income Tax Act and PU orders as guided by the IRB’s Public Rulings.[2] j) Explain the tax implications of non compliance with the withholding tax provisions.[2] k) Compute income chargeable to income tax.[2] Excluded topics • Research and development capital expenditure incentives. • Capital allowances on a disposal subject to control. • Capital expenditure on mines. • Forest expenditure. • Expenditure on prospecting operations. • Tax incentives.
  2. The comprehensive computation of income tax liability a) Compute the income tax liability and apply appropriate tax rates.[2] b) Explain how exemptions and reliefs can defer or minimise income tax liabilities.[2] c) Explain the treatment of unabsorbed losses and unabsorbed capital allowances brought forward from the previous year of assessment.[2] d) Compute the amount of unabsorbed losses and unabsorbed capital allowances from the previous year of assessment that can be set off against the income of the current year of assessment.[2] Excluded topics • The effect of a change in shareholding of a company on unabsorbed losses and unabsorbed capital allowances.
  3. The use of exemptions and reliefs in deferring and minimising income tax liabilities. [The use of such exemptions and reliefs is implicit within all of the above sections 1 to 3 of part C of the syllabus, concerning income tax (on companies)]
  4. Capital gains tax As the legislation relating to the capital gains tax as provided in Section 4(aa) of the Income Tax Act, 1967 is still evolving, capital gains tax will NOT be examined for the exam years December 2025 to September 2026. D Real property gains tax
  5. The scope of real property gains tax a) Describe the scope of real property gains tax.[2] b) Explain the cases where the acquirer may be assessed.[2] Excluded topics • Bodies of persons, partnerships and coproprietorship. • Incapacitated persons. • Real property companies.
  6. The basic principles of computing chargeable gains and allowable losses. a) Compute real property gains.[2] b) Calculate the allowable losses.[2] c) Explain how acquisition price and disposal price are calculated.[2] d) List the incidental costs.[1] e) Recognise the expenditure that is excluded in computing acquisition price and disposal price.[1] f) Explain the meaning of ‘permitted expenses’. [2] g) Explain the tax implications of transfers between husband and wife.[2] Excluded topics • Real property acquired prior to 1 January

• Transfers related to death or inheritance. • Conditional contracts. • Leases and options. • Contingent liabilities. • Dealings for enforcement of security. 14. Gains and losses on the disposal of real property a) Define the terms ‘real property’, ‘land’, ‘acquire’, and ‘dispose’. [1] b) Explain what constitutes acquisition and disposal.[2] c) Determine the date of acquisition and date of disposal.[2] d) Explain the determination of “acquisition price” and “disposal price”. [2] Excluded topics • The disposal of leases and the creation of sub-leases. • Transfer of assets between companies in the same group. • Transfer of assets to controlled companies. • Real property companies – gains on the disposal of RPC shares and shares issued in exchange for the transfer of property. • Distribution of assets of a partnership. • Dealings by nominees and certain trustees. • Trustees and partners. 15. The computation of the real property gains tax payable a) Calculate the Schedule 4 exemption on a chargeable gain accruing to individuals.[2] b) Compute the gain and explain the application of the exemption on the disposal of private residences.[2] c) Compute the amount of real property gains tax payable.[2] 16. The use of exemptions and reliefs in deferring and minimising tax liabilities arising on the disposal of real property a) Recognise the tax advantage on the disposal of private residences.[1] b) Identify the appropriate timing for the disposal of real property.[2] E Sales tax 17. The scope of sales tax a) Describe the scope of sales tax.[2] b) Explain the charge on taxable goods and taxable persons.[2] c) Describe the places deemed to be outside Malaysia.[2] d) Describe the circumstances in which sales tax is not applicable.[2] e) Understand the basic principles of sales tax as it applies to the import and export of goods. [2] Excluded topics • Special provisions dealing with designated areas • Special provisions dealing with Special Areas • Special provisions dealing with petroleum

  1. The sales tax registration requirements a) Recognise the circumstances in which a person is liable to register for sales tax including sub-contractors.[2] b) Describe the types of registration for sales tax including mandatory and voluntary registrations.[1] c) Explain the scope and definition of manufacturing for the purposes of sales tax. [1] d) Explain the circumstances for the cessation of liability to be registered / cancellation of registration.[2]
  2. The computation of sales tax liabilities a) Determine the taxable period.[1] b) Explain how sales tax is accounted for and administered.[2] c) Recognise transactions that are regarded as a ‘sale’ for sales tax.[2] d) List the information that must be given on an invoice.[1] e) Explain and apply the principles of sales value, including the rules of valuation.[2] f) Calculate the amount of sales tax.[2]
  3. The collection, recovery, refund, drawback, and remission of, and exemption from, sales tax a) Explain the circumstances for the reduction of sales tax by the issue of debit and credit notes.[2] b) List the particulars that must be contained in the debit and credit note.[1] c) Explain the circumstances for drawback.[2] d) Explain the circumstances for refund and remission.[2] e) Compute the amount of refund of bad debts for sales tax paid and the repayment of the refund to the Customs Department when the bad debts are subsequently recovered. [2] f) Compute the amount of refund of sales tax paid for bad debts written off and the repayment of the refund to the Customs Department when the bad debts are subsequently recovered.[2] g) Explain the circumstances for specific exemption for persons and from registration.[2] h) Describe the facilities available for goods or class of goods to persons including manufacturers of specific exempted goods or registered manufacturers to acquire materials free of sales tax in manufacturing taxable goods as provided in Schedule A, B and C. [2] Excluded topics • Transitional provisions. • The direction to treat persons as a single taxable person. • Liquidator of company to give notice of winding-up, and set aside tax. • Appointment of receiver to be notified to the Director General. • Provisions dealing with petroleum. F Service tax
  4. The scope of service tax a) Describe the scope of service tax.[2] b) List the taxable services and taxable persons and prescribed goods and services.[1] c) Describe the places deemed to be outside Malaysia.[1] d) Describe the circumstances in which service tax is not applicable.[2] e) Describe the reverse charge mechanism on imported services.[1] f) Understand the basic principles of export of services.[2]
  5. The service tax registration requirements a) Recognise the circumstances in which a person must register for service tax.[2] b) Compute the total annual sales turnover of a person to determine the threshold limit.[2] c) Explain the circumstances for the cessation of liability to be registered / cancellation of registration.[1]
  6. The computation of service tax liabilities a) Explain how service tax is accounted for and administered.[2] b) Define the terms ‘goods’ and ‘taxable period’.[2] c) List the information that must be given on an invoice. [1] d) Determine the charge and value of a taxable service including the taxable service for the sale of goods.[2] e) Explain how service tax is levied.[2] f) Calculate the amount of service tax.[2] g) Explain disbursements and reimbursements.[2]
  7. The collection, recovery, refund, and remission of, and exemption from, service tax a) Explain the circumstances for the reduction of service tax by the issue of debit and credit notes.[2] b) Explain the circumstances for refund and remission.[2] c) Compute the amount of refund of bad debts for service tax paid for bad debts written off and the repayment of the refund to the Customs Department when the bad debts are subsequently recovered.[2] d) Describe the procedure for refund.[2] Excluded topics • Transitional Provisions • The direction to treat persons as a single taxable person. • Taxable services provided by a company in a group of companies. • Liquidator of company to give notice of winding-up, and set aside tax. • Appointment of receiver to be notified.

G Employability and technology

skills 9. Use computer technology to efficiently access and manipulate relevant information 10. Work on relevant response options, using available functions and technology, as would be required in the workplace 11. Navigate windows and computer screens to create and amend responses to exam requirements, using the appropriate tools 12. Present data and information effectively, using the appropriate tools

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