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hiny Parts Sdn Bhd appears to be liable for prosecution for wilful evasion under section 114 of the Act as well as for making an incorrect return under section 113 of the Act.

The managing director appears to be liable for prosecution for assisting Shiny Parts Sdn Bhd in wilful evasion under section 114 of the Act as well as for making an incorrect return on behalf of Shiny Parts Sdn Bhd under section 113 of the Act.

Mr. Leong may also be liable for prosecution for assisting Shiny Parts Sdn Bhd in wilful evasion under section 114 of the Act. He did act correctly and in good faith by pointing out to the managing director that not all entertainment expenses were fully deductible and that would normally excuse him from any liability. However, he should also have advised the managing director to make a written disclosure and justify his stand. Taking a different position or stand from a public ruling is a situation in which a written disclosure is required by paragraph 3.5 of Public Ruling No. 8/2000. This omission might prejudice his immunity from prosecution.
Section 113. Incorrect returns.

(1) Any person who-

(a) makes an incorrect return by omitting or understating any income of which he is required by this Act to make a return on behalf of himself or another person; or

(b) gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person, shall, unless he satisfies the court that the incorrect return or incorrect information was made or given in good faith, be guilty of an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit and not more than ten thousand ringgit and shall pay a special penalty of double the amount of tax which has been undercharged in consequence of the incorrect return or incorrect information or which would have

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