INCOME TAX (EXEMPTION) (NO. 54) ORDER 2000

INCOME TAX (EXEMPTION) (NO. 54) ORDER 2000

IN exercise of the powers conferred by paragraph 127(3) (b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:
Citation and commencement
1. (1) This order may be cited as the Income Tax (Exemption) (No. 54) Order 2000.
(2) This Order shall be deemed to have effect from the year of assessment 1999.
Interpretation
2. For the purpose of this Order-
"promoter of car or motorcycle races" means a company incorporated under the Companies Act 1965 [Act 125], or an association or organisation registered under the Societies Act 1966 [Act 335];
"races of international standard" means any car or motorcycle races recognised by the Federation De L Automobile (FIA) and the Federation International De Motorcyclisme (FIM) .
Exemption
3. (1) The Minister exempts-
(a) the driver of a racing car or motorcycle from the payment of tax in respect of the gross income earned from competing in races of international standard held in Malaysia; and
(b) a promoter of car or motorcycle races from the payment of tax in respect of fifty per cent of the statutory income derived from the organisation of races of international standard held in Malaysia.
(2) Nothing in this paragraph shall absolve or be deemed to have absolved the driver or the promoter from complying with any requirement to submit any return or statement of accounts or to furnish any other information under the provisions of the Act.
Keeping of separate accounts
4. A promoter of car or motorcycle races seeking exemption under subparagraph 3(1) (b) shall maintain a separate account for the income derived from the organisation of races of international standard held in Malaysia.
Application of paragraphs 5 and 6 of Schedule 7A
5. In relation to a company, paragraphs 5 and 6 of Schedule 7A to the Act shall apply, mutatis mutandis, to the amount of income exempted under subparagraph 3(1) (b) .

Made 14 December 2000.
[Perb. 0. 8823/5227 (Vol. 2) ; LHDN. 01/35/(S) /42/51/231-3; PN(PU2) 80/XXIX]

On behalf and in the name of the Minister of Finance,
CHAN KONG CHOY
Deputy Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]