Bitcoin and GST in Malaysia – Cryptic Times Ahead?

Dave Ananth is a senior lawyer, a former Magistrate and advocate in Malaysia before taking up a position with the Inland Revenue Department in New Zealand as a Prosecutor. He now practises as a Tax Barrister, based in Auckland. He is an expert on Malaysian GST and a familiar speaker on the local Malaysian circuit. He also writes extensively on GST in Malaysia and other taxation issues in New Zealand.  He is a consultant for Wolters Kluwer on Malaysian GST. He can be reached at davetaxnz@gmail.com. 


Cryptocurrency, a form of digital currency is the new ‘digital money’ of the millennium. It is cash that you cannot see nor touch as it is not tangible. However, it is in the internet, mostly stored in a digital wallet and is being traded in many countries. Cryptocurrency is created by ‘miners’ using high powered computers using massive amounts of electricity.

If you have not heard about this digital currency, then you are lagging behind. It is the buzz word today with everyone jumping onto the bandwagon, and some not knowing what they are getting into.

Punters predict it will change the financial landscape completely, sceptics, on the other hand, believe it would not last, akin to the Dutch Tulip Mania in the 16^th century. Tulip mania was the first recorded financial bubble. Tulips became fashionable and there was a mad rush to purchase tulips – causing their prices to increase to monumental levels which after a period, dramatically collapsed. Many are cautious – with one of them being Richard Harris, who wrote a damning article equating bitcoins to speculative derivatives and why it could trigger the next global financial crash.

Some countries have banned this form of currency while others have gone ahead to recognise it, amending the law and regulations to suit. 

My intention in this article is not to advise potential investors. I do not have a crystal ball for that. Instead, this article discuss GST options for the Government to consider in giving life to Bitcoin, which is the best-known cryptocurrency. 

The Law on Bonus Payments

Author: Donovan Cheah (Partner) with assistance from Natalie Ng (Intern) (Donovan & Ho)

www.dnh.com.my

As the year comes to an end, many companies are starting to offer bonuses to reward employees for achieving specific goals, or for overall good performance. However, bonuses are normally described as “discretionary”, which is understood to mean that the employer has a right to determine whether or not to grant a bonus that particular year, or how much bonus should be given.

The recent case of All Malayan Estates Staff Union v Revertex (Malaysia) Sdn Bhd gives an interesting perspective as to how a Company should exercise its discretion in granting bonus.

How to prevent misconduct at the workplace Christmas party

Author: Paul O’Halloran, a partner in the employment and safety team at Colin Biggers & Paisley

In brief — employers should consider risk of and take steps to avoid being held vicariously liable

End of year workplace social functions will soon be upon us. It is now well established that such occasions, even if held outside standard work hours and away from work premises, are sufficiently “connected” to the workplace such that any unlawful behaviour — for example, bullying, fighting or sexual harassment — engaged in by employees at those functions can be the subject of a workplace complaint or litigation.