This article is written by Lee Hishamuddin and Gledhill (LHAG) and was first published in their Transfer Pricing e-Alert in September 2019. Reproduced with permission from LHAG.
In FSB vs Ketua Pengarah Hasil Dalam Negeri, a transfer pricing appeal before the DGIR made transfer pricing adjustments on the ground that services
provided by the holding company were duplicative of the
activities carried out by the taxpayer. The DGIR invoked Section
140(1) of the Income Tax Act 1967 and applied the general tax
avoidance provision to perform transfer pricing adjustments.
Tax assessments were raised and the taxpayer appealed
against the assessments to the SCIT.
