15/09/2025

BIZ & FINANCE MONDAY | SEPT 15, 2025

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Practical problems related to capital statements

MCE, Adayo to collaborate on smart cockpit, driving solutions PETALING JAYA: MCE Holdings Bhd has signed a memorandum of understanding (MoU) with Huizhou Foryou General Electronics Co Ltd (Adayo) to collaborate on the development, localisation, manufacturing and marketing of smart cockpit and smart driving solutions for automakers in Malaysia and across Asean. The signing took place during the China Malaysia Supply Chain Collaboration Pro gramme in Hangzhou, China, co-organised by the Transportation Technology Division of the Malaysian Investment Development Authority (Mida) and Jetour Automobile Malaysia. In line with MCE’s strategy to move up the value chain, the MoU strengthens MCE’s position in the smart-cockpit domain, a core in-cabin system in next-generation vehicles, covering in vehicle infotainment, cockpit domain controllers and connected-vehicle systems. Under the collaboration, MCE will manufacture and supply these products in Malaysia and across Asean, while Adayo provides technology platforms, product development and technical support, with an initial focus on programmes for automakers in Malaysia and Asean. Early workstreams include exploring localisation of smart-cockpit and info tainment systems for selected programmes in Malaysia. MCE group managing director Dr Goh Kar Chun said: “This collaboration accelerates MCE’s efforts to broaden its portfolio of technologically advanced solutions for next generation vehicles, from research and development to manufacturing at scale. “It also recognises MCE’s operations and manufacturing know-how, quality discipline and proven track record, enabling us to better support automakers here to further localise their offerings, while lifting the local supplier base and talent in support of the govern ment’s ambition for Malaysia to be the automotive hub in the region.” Founded 1993, Adayo specialises in smart cockpit and smart-driving solutions for global automakers. M’sia, Indonesia to open trade route between Tebedu and Entikong KUCHING: Malaysia and Indonesia have agreed to open an official trade route between Tebedu in southwest Sarawak and Entikong in Kalimantan, marking a significant milestone in strengthening cross-border eco nomic collaboration. Sarawak Premier Tan Sri Abang Johari Tun Openg said the agreement was reached during a recent bilateral meeting in Jakarta, where he joined Prime Minister Datuk Seri Anwar Ibrahim in discussions with Indonesian President Prabowo Subianto. “At the meeting, I raised the matter of Tebedu and Entikong as potential trade gateways, and their authorities were open to the idea. He (Prabowo) said, let’s open it for business between Malaysia and Indonesia through Tebedu and Entikong. It means it becomes a trading point between Malaysia and Indonesia,” he said. He was speaking at the launch of the Dayak Bidayuh National Association Community Hostel and its 70th Anniversary Celebration here on Saturday night. – Bernama

Proton Regional Parts Centre in Kuching ready to support the all-new X50 PETALING JAYA: Since its launch on July 24, the all-new Proton X50 has risen to become Malaysia’s No. 1 sports utility vehicle in August, recording more than 4,000 units sold. Significant demand has come from East Malaysia, where Proton has made preparations to ensure aftersales readiness for the model. The Proton Regional Parts Centre in Kuching, Sarawak plays a crucial role by ensuring that parts for the all-new Proton X50 can be delivered within two days for urgent orders, supported by healthy stock levels to maintain service excellence. Located in the Bintawa Industrial area, the facility spans about 28,000 sq ft, making it three times larger than the previous warehouse, with a 200% increase in capacity. It can handle up to six containers simultaneously. Currently, it processes an average of 15 to 20 containers per month and operates at full capacity, able to hold between three and 3½ months of stock. The centre is prepared to receive direct shipments from overseas, strengthening its role in ensuring timely supply. “With growing customer demand in East Malaysia, this Regional Parts Centre is the largest among OEM competitors in Kuching. It functions as the main distribution hub for Sarawak and, if necessary, also supports Sabah. Capable of delivering up to 6,000 orders per month, it allows Proton to meet dealer needs quickly and efficiently clear backlogs for customers,” said Proton Edar deputy CEO Zhang Qiang. East Malaysia contributed 20.6% of Proton’s A CAPITAL statement is a summary of your assets and liabilities for a tax year to assess whether your declared income for that same period matches the increase in your wealth. This involves preparing a “balance sheet” of an individual each year, and determining the increase or decrease in his wealth which must be reconciled against the income declared by the individual. Although it appears to be simple, there are many complications that can arise which will lead to disputes with the tax authorities. To prepare a comprehensive capital statement, one has to gather bank statements, credit card statements, company accounts, sale and purchase agreements of all type of properties, loan agreements, insurance policies, documents to support your various types of investments such as unit trusts, bonds, fixed deposits, shares, documents to support gifts received, friendly loans, lottery or gambling winnings, inheritance, interest in trusts, etc. You should also include local and overseas assets, liabilities, income and expenditure in your capital statements. The tax authorities can ask you to prepare the capital statement for a maximum of five years in accordance with the limitation period provided in the Income Tax Act 1967. Problems that arise In recent years, proving that a person has received gifts has become much tougher. The starting point appears to be that gifts are not

years prior to the preparation of the capital statement. Generally, tax payers may not have been diligent in reviewing their bank statements and keeping documents to support the specific transactions over the years. The tax authority has the tendency to take credit entries in the bank statement as taxable income and debit entries as private expenditure which may not be correct as the credit entries may represent reimbursements, capital receipts, interbank transfers, etc. The debit entries may represent purchases of capital assets, interbank transfers, providing loans, etc. If the information is not available to back up your positions, the capital statement will reflect larger discrepancies which will result in under declaration of income, and additional taxes. Overall, capital statements are never accurate since both parties will make assumptions which may not be supported by evidence. The burden of proof here is largely with the taxpayer. However, the tax authorities cannot be unreasonable as they will have to substantiate their position if the matter goes to court. Generally, capital statements are settled prior to the matter being referred to the courts. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com).

easily accepted as non-taxable items. The burden of proving the gift is a genuine gift lies with the taxpayer, and he must show evidence in writing that the donor gratuitously gave the cash gift and has the financial capacity to give the gift. The gift is also usually given out of love and affection and is given between close friends or relatives. In the event the gift is given by third parties, the burden of proof increases and the donor must clearly declare in a deed stating the reason for the gift. It should be unconnected to any business dealings or not received while exercising an employment. The tax authorities are also frequently questioning loans received from third parties on whether the loan is genuine or is it a form of income. They are asking the taxpayers to obtain information from the lender on the source of his funds. Effectively, they want the taxpayer to get the information from the lender which is normally beyond the control of the borrower. If you cannot provide the information, they are attempting to convert the loan from a third party into income of the taxpayer. This does not resonate with the law since the taxpayer cannot force the lender to disclose the source of his funds. A big headache for taxpayers in preparing a capital statement is explaining the debit and credit entries in the bank statements since the transactions would have occurred many

The all-new Proton X50 has become Malaysia’s No. 1 sports utility vehicle, recording more than 4,000 units sold in August.

1,387 units. Proton continues to strengthen its Proton Operational Excellence Programme in East Malaysia to deliver higher service standards. “Customer satisfaction is always our ultimate goal. While we acknowledge there is more work ahead, every improvement brings us closer to achieving our target. We remain committed to delivering high-quality products, supported by an equally strong after-sales experience,” said Zhang.

total sales volume, while market share increased from 19% in 2024 to 19.5% in 2025 during the same period. With the momentum of the all-new Proton X50 and the arrival of new models this year, this figure is expected to rise further. The highly popular Proton Saga remains the region’s best-selling model. Year to date, the three top-selling Proton models in East Malaysia are the Saga with 13,619 units, followed by the Persona with 2,282 units and then the X50 with