When a taxpayer receives a tax assessment from the Director General of Inland Revenue (DGIR), it can sometimes be unexpected or appear incorrect. Fortunately, the Income Tax Act 1967 (ITA) provides a legal avenue for taxpayers to challenge such assessments through the right of appeal under Section 99.

Who Can Appeal an Assessment?

Under Section 99 of the ITA, any individual or company who is aggrieved by an assessment made by the DGIR for a particular Year of Assessment (YA) has the right to file an appeal. This allows the taxpayer to dispute the amount of tax charged or the tax treatment applied by the DGIR.

When the Right of Appeal Does Not Apply

Not every type of assessment can be appealed. Section 99 does not apply in the following cases:

• Deemed assessments under subsection 90(1) of the ITA; and
• Deemed assessments for amended tax returns (ITRF) under section 91A of the ITA.

However, there is an important exception. If a taxpayer disagrees with the tax treatment used by the DGIR—especially if it contradicts a Public Ruling (PR), or the DGIR’s known rules, practices, or official stand at the time—then an appeal may still be made.

Examples of such known positions include:

• Private rulings or advance rulings issued by the Inland Revenue Board of Malaysia (IRBM);
• Official guidelines and circulars published by IRBM;
• Decided cases by the Special Commissioners of Income Tax (SCIT) or Malaysian courts; and
• Other written evidence reflecting the DGIR’s recognised practice or interpretation.

Types of Assessments You Can Appeal

A taxpayer may appeal under Section 99 in the following situations:

1. Assessments or additional assessments made following tax audit or investigation findings;
2. Best judgment assessments issued when no return form was submitted, or when it was submitted late, under subsection 90(3) or 91(1) of the ITA; and
3. Deemed assessments where the taxpayer disputes the tax treatment in the DGIR’s known practice or public ruling.

Composite Assessments – No Right of Appeal

It is also important to understand that composite assessments, issued under Section 96A of the ITA, cannot be appealed. A composite assessment is based on a mutual agreement between the taxpayer and the DGIR to settle a tax issue. Once accepted, this assessment is final and binding.

Key Takeaway

The right of appeal under Section 99 ITA is an essential protection for taxpayers in Malaysia. It allows you to question or challenge a tax assessment that may not reflect your true liability. However, it’s crucial to act within the prescribed time limit and ensure your appeal is properly supported with documentation and legal reasoning.

If you have received a notice of assessment or believe your tax treatment has been applied unfairly, it is advisable to seek legal or tax counsel before filing your appeal. An experienced tax lawyer can assess whether your case qualifies under Section 99 and guide you through the appeal process with the Inland Revenue Board (IRBM) or the Special Commissioners of Income Tax (SCIT).

Contact Our Tax Litigation Team

If you need guidance on filing an appeal under Section 99 ITA or defending your rights in a tax dispute with the DGIR, reach out to our team today.

📞 Lawyer Khoo, Managing Partner
📧 [email protected]
📱 +6016-557 4789

At NZSK Legal, we are committed to protecting your interests and ensuring fair treatment under Malaysia’s tax laws.