DGIR v. KTT [1997]: Legal Owner vs Beneficial Owner

Since the purpose of this article is to serve as an illustration, all real names and dates have been altered.

High Court Malaya, Johor Bahru Abdul Malik Ishak J [Civil Appeal No: 12-18-1997] 25 September 1997

JUDGMENT Abdul Malik Ishak J: This appeal came up to me because of a case stated by the Special Commissioners of Income Tax ('special commissioners') under para. 34, Sch. 5 of the Income Tax Act 1967 (Act 53).

The then Federal Court in the case of Director-general Of Inland Revenue V. Rakyat Berjaya Sdn. Bhd. [1983] 1 MLRA 281 had this to say regarding a case stated by the special commissioners:

Appeals from the decisions of the Special Commissioners in tax cases are made by way of case stated under the Income Tax Act 1967 Sch. 5, para. 34. The paragraph states clearly that any appeal is on a question of law. Hence, pure findings of fact may not be challenged on an appeal.

However, the court has clear and undoubted jurisdiction to reverse a decision on questions of law.

The Special Commissioners' Findings of Facts