Latest news with #StampAct
Yahoo
4 days ago
- Politics
- Yahoo
Revolutionary War-era reenactment being held at Hagerstown City Park
HAGERSTOWN, Md. () — This Saturday, everyone is invited to a Revolutionary War-era reenactment at the Hagerstown City Park. Living historians will showcase military drills on the grounds of the Jonathan Hager House and there will also be a reenactment of battlefield experiences from the 18th century. Hagerstown rallies for return of Vietnamese woman detained by ICE Matt Penrod gives guided tours of the Hager House and City Park grounds. The people here rebelled. This was the first community, really, of all the colonies, to stand up to the British to repudiate the Stamp Act. This was in 1765,' he said. Saturday's activities will be held from 10 a.m. until 4 p.m. and will feature black powder firing demonstrations and a showcase of firearms from the Revolutionary War era. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Borneo Post
03-06-2025
- Business
- Borneo Post
Govt urged to reconsider mandatory stamp duty on employment contracts
Tan KOTA KINABALU (June 3): The Sabah Association of Professional Accountants (SAPA) expresses concern over the recent directive by the Inland Revenue Board (LHDN Malaysia) requiring all employment contracts to be stamped in accordance with the Stamp Act 1949. 'While we recognise the importance of legal compliance and revenue collection, SAPA calls on the government to urgently consider exemptions or threshold limits, especially for small and medium enterprises (SMEs),' said its president, Datuk Tan Kok Liang. He said this policy places additional administrative and financial burdens on businesses — particularly in Sabah, where operating costs are already higher due to logistics, geographic challenges, and a more constrained labour market. 'The move to enforce stamp duty on all employment contracts, regardless of salary level or business size, risks creating unintended pressure on SMEs,' he said in a statement on Tuesday. The key concerns are as follows: Disproportionate impact on SMEs: Unlike large corporations, small businesses operate on tight margins. A blanket enforcement adds to compliance costs without proportional benefit. Administrative Burden: The need to process, submit and pay for stamp duty on every employment contract creates extra red tape, especially for businesses with high staff turnover or seasonal employment. Impact on formalised contracts: Over-regulation in the hiring process may discourage small businesses from formalising contracts thus placing employees in rural and semi-urban Sabah into vulnerable position. SAPA's recommendations: Introduce a Threshold Limit: Exempt employment contracts for positions with monthly salaries below a reasonable threshold (e.g. RM4,000), in line with many other tax relief measures. Provide Full or Partial Exemption for Micro and Small Enterprises: Particularly those with annual revenue below RM500,000 or fewer than 10 employees. Phase Implementation with Outreach: This includes sufficient time to meet up with the new requirements and a new implementation date of 1 January 2026 and approach with education and support will ease compliance. SAPA strongly urges the Ministry of Finance and the Inland Revenue Board to engage with industry stakeholders in Sabah and other less-developed states before blanket implementation. Public policy must consider regional disparities, business realities, and the broader objective of stimulating employment and economic growth. 'We are confident that with constructive dialogue, a balanced policy solution can be achieved that protects both the interests of the government and the resilience of our local business community,' said Tan. He added the Stamp Act must be modernised to reflect current practical realities rather than remaining rooted in outdated and regressive approaches. While its original intent and purpose — to provide legal certainty and protect the interests of contracting parties — remain important, these objectives must be interpreted in the proper context. The Act should not be used in a manner that causes undue inconvenience or serves merely as a revenue-generating tool. In the case of employment contracts, for instance, such agreements have long been executed and honored by both employers and employees without issue. This consistent practice demonstrates mutual respect and understanding of contractual obligations, regardless of whether the documents were stamped. Insisting on strict adherence to outdated requirements, especially where there is no dispute between parties, undermines the spirit of the law and creates unnecessary administrative burdens, he pointed out. 'It is time for a balanced approach — one that preserves the protective function of the Stamp Act but updates its application to align with modern business practices and realities' he said. Previous Article UMS water supply sufficient, says Shahelmey
The Star
03-06-2025
- Business
- The Star
Sabah accountants urge rethink on stamp duty for employment contracts
KOTA KINABALU: The Sabah Association of Professional Accountants (SAPA) is urging the federal government to reconsider the blanket enforcement of stamp duty on all employment contracts. The group warns that the policy could burden small and medium-sized enterprises (SMEs), particularly in Sabah. While acknowledging the legal and fiscal rationale behind the Inland Revenue Board's directive, SAPA president Datuk Tan Kok Liang stated that the policy must consider the realities of doing business in less-developed regions like Sabah. "This requirement places additional administrative and financial burdens on employers, especially SMEs operating under constrained resources and geographical challenges," he said on Tuesday (June 3). He added that SAPA calls for a more balanced approach by exempting contracts with monthly salaries below RM4,000, offering exemptions to micro and small enterprises, and phasing in the policy with an implementation date no earlier than January 1 next year, alongside stakeholder engagement and educational outreach. Tan noted that the directive risks discouraging small businesses from formalising employment contracts due to overregulation and red tape. "This could inadvertently leave workers in rural or semi-urban Sabah vulnerable and without formal employment protection," he said. He added that while the Stamp Act 1949 was enacted for legal clarity and contractual certainty, its enforcement must evolve. "In practice, employment contracts have been respected by both employers and employees, with or without a stamp. Strict enforcement based on outdated provisions is counterproductive," he said. Tan then said that SAPA believes reforming the Stamp Act to reflect modern business practices is essential to prevent it from becoming solely a revenue collection tool. "We remain confident that through constructive dialogue, a balanced policy solution can be achieved, one that upholds the law while safeguarding local businesses and promoting employment," said Tan.
Daily Express
27-05-2025
- Business
- Daily Express
‘Review outdated Stamp Act' call
Published on: Tuesday, May 27, 2025 Published on: Tue, May 27, 2025 By: Mohd Izham Bin Hashim Text Size: Dennison criticised the Stamp Act for its rigid, colonial-era framework, arguing that its punitive measures no longer reflect the realities of today's economy. Kota Kinabalu: The Federal Government has been urged to initiate a comprehensive review of the outdated Stamp Act 1949, which is believed to disproportionately affect small businesses and rural communities in Sabah. 'There is an urgent need to update this law to ensure it is aligned with modern business practices and provide better support for the growth of small and microenterprises, rather than stifling them with outdated penalties,' said Dennison R. Indang, Supreme Council Member of the Kadazandusun Chamber of Commerce and Industry (KCCI). Dennison's call for reform comes in response to the recent imposition of a new stamp duty on job contracts by the Inland Revenue Board (LHDN). In a media statement Monday, he highlighted how this move underscores the pressing need for a law overhaul, noting that small and microenterprises are still burdened by outdated regulations. Dennison criticised the Stamp Act for its rigid, colonial-era framework, arguing that its punitive measures no longer reflect the realities of today's economy. He pointed out that many businesses in Sabah, especially small family-run businesses, operate informally. Advertisement 'In Sabah, many transactions are informal by nature, including family-based rental agreements, small-scale community business contracts, and personal loans,' Dennison said, who noted such informal transactions are now vulnerable to disproportionate enforcement under the Act. He said that businesses in Sabah, particularly those that rely on informal agreements, are facing significant challenges in complying with the Act's complex regulations. 'The Stamp Act remains rooted in outdated structures that impose significant financial and administrative burdens on small enterprises, particularly those that operate informally,' he added. In response to the negative impact of the Act on small businesses, Dennison proposed several key reforms. First, he called for a reduction or exemption of stamp duty on small-value transactions, particularly those under RM10,000, to reduce the burden on microenterprises and low-income groups. Denisson also suggested the introduction of a one-time amnesty for businesses that failed to comply with the Stamp Act due to a lack of information, rather than any intent to evade taxes. 'We need to allow businesses to correct their past mistakes without incurring harsh penalties,' he said, emphasizing that many businesses may have unintentionally failed to comply due to a lack of awareness. Furthermore, Dennison proposed the devolution of stamp duty processing powers to Sabah and Sarawak, allowing local authorities to apply the law in a more context-sensitive and people-friendly manner. 'Local authorities are better equipped to apply this law in a manner that reflects the unique economic and cultural circumstances of Sabah and Sarawak,' he said. To assist businesses in complying with the law, Dennison also called for the development of user-friendly digital platforms that offer clear guidance in both Malay and English. These platforms would ensure that rural communities have access to the information and support needed to navigate the Stamp Act. Lastly, Dennison called for the establishment of a Parliamentary Select Committee to review the entire scope of the Stamp Act 1949. He suggested that the committee should involve diverse stakeholders, particularly voices from Sabah and Sarawak, to ensure that any reforms to the Act reflect the needs of small businesses in these regions. He noted the Act, which was introduced before Malaysia's independence, enforces rigid penalty structures, complex compliance requirements, and little flexibility — disproportionately affecting ordinary citizens who are often penalised not for wilful evasion, but due to a lack of awareness and access. 'We need a tax system that empowers, not punishes, those who are trying their best to comply.' Dennison concluded by stressing the need for tax laws that are modern, fair, and reflective of Malaysia's current economic environment. 'We are no longer living in 1949. Our laws must reflect a modern, fair, and forward-looking Malaysia,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Free Malaysia Today
26-05-2025
- Business
- Free Malaysia Today
Stamp duty crackdown: legacy of lax enforcement or legal duty ignored?
From Andrew Ewe The Inland Revenue Board's (IRB) recent focus on unstamped employment letters, service contracts, and other instruments has caused understandable alarm among employers across Malaysia. What many are only now discovering is that the legal obligation to stamp these documents has existed since the Stamp Act 1949 – a statute that turns 75 this year. The sudden enforcement drive, under the newly released Stamp Duty Audit Framework effective Jan 1, 2025, raises a fundamental question of fairness and principle: Can a law that was dormant for decades suddenly be brought to life, with penalties imposed on businesses that have long followed an unofficial industry norm? A legacy of lax enforcement For over half a century, the IRB rarely enforced the stamping of employment contracts or service agreements with periodic payments. Companies – large and small – operated under the reasonable assumption that such documents were not subject to stamping, or that even if they were, it wasn't practically required. This long period of non-enforcement effectively shaped market behaviour. Employers routinely issued letters of appointment, fixed-term contracts, and professional engagement agreements without stamping, and the IRB neither objected nor intervened. The role of legitimate expectation In public law, the concept of legitimate expectation arises when a public authority acts consistently over time, and individuals or entities rely on that conduct to guide their decisions. Many taxpayers now argue that IRB's decades-long silence constituted an implicit assurance – that unstamped employment documents were acceptable. And thus, they say, the IRB should not now impose penalties or retroactively enforce duties that were never seriously applied before. But here lies the legal reality: while legitimate expectation is recognised in Malaysian administrative law, it cannot override express statutory obligations. The courts have consistently ruled that a taxpayer cannot rely on past lax enforcement to avoid current legal duties,especially where the law itself is clear. So, while legitimate expectation may support an argument for fairness, grace periods, or waiver of penalties, it will not succeed as a full defence against the requirement to pay stamp duty. A fairer way forward The IRB is not wrong to enforce the law. But fairness demands that enforcement be proportionate and forward-looking, not punitive for past inaction that it tacitly allowed. Employers are now in a compliance bind: penalised for something they were never previously warned or reminded about. To move forward constructively, the following approach is advisable: 1. Review all contracts – particularly employment letters, fixed-term service agreements, and any instrument involving reward payments. 2. Identify instruments that should have been stamped, especially those executed within the past three years as these are within audit range as indicated in the Audit Framework. 3. Voluntarily stamp those documents, where possible, to avoid penalties under audit. 4. Adopt a proactive stamping policy moving forward, making it part of your standard HR or legal process. 5. Engage with the IRB, where audited, to seek mitigation – citing widespread historical practice, absence of past guidance, and willingness to comply moving forward. You may wish to wait for IRB's decision on an amnesty period during which they may not impose any late stamping penalty. Final thoughts This is not merely a compliance issue. It's a reflection of how tax enforcement must evolve -with transparency, predictability, and fairness. When a law has been neglected in enforcement for 75 years, it is not just a taxpayer oversight — it is a systemic policy failure. The solution lies not in finger-pointing, but in balancing legal enforcement with administrative justice. Employers deserve clarity. And tax authorities owe it to the business community to enforce the law not just strictly, but sensibly. Andrew Ewe is a Fellow of the Chartered Tax Institute of Malaysia and a former chairman of its Northern Branch. The views expressed are those of the writer and do not necessarily reflect those of FMT.
