'Bad effects if Labuan tax perks withdrawn'

LABUAN: The Association of Labuan Trust Companies (ALTC) fears that if the Finance Ministry goes ahead with its decision to withdraw the tax incentives provided to entities under the International Business and Financial Centre (IBFC) which provide trading and consultancy services, would have adverse effects such as subtantial loss in tax revenue, loss of jobs opportunities in the industry and be akin to “killing the goose that lays the golden eggs”.

ALTC Chairman Datuk Chin Chee Kee (pic) said “the incentives that had been provided for more that 20 years if it was disturbed now would cause some companies to pay as much as RM15 million as these companies would be taxed under the Inland Revenue Tax Act 1967 at 24 per cent and subjected to other provisions of the Act. 

 

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