AUDIT EXEMPTION FOR CERTAIN CATEGORIES OF PRIVATE COMPANIES

The Companies Commission of Malaysia (SSM) has issued Practice Directive regarding the exemption.

Followings criteria are shall effect immediately:

1. Dormant company,

• incorporated on or after 31 January 2017, the financial statements with annual periods commencing on or after 31 January 2017: and
• where the company is incorporated on or before 30 January 2017, the financial statements with annual periods commencing on or after 1 September 2017.

2. Zero revenue companies, for financial statements with annual periods commencing on or after 1 January 2018.

3. Threshold qualified companies, for financial statements with annual periods commencing on or after  1 July 2018.

SOURCE :MIA

Directors' Report, Statement by Directors, Statutory Declaration and Auditors' Report effects after Companies Act 2016

SSM informed that for financial statements for the period/year ended on or before 30 January 2017, it will accept the accompanying  reports dated on or before 31 July 2017 that comply  with either :

(a) the requirements under the Companies Act 1965; or

(b) the requirements under the Companies 2016

SSM takes the position that after 31 July 2017, the accompanying reports should comply with requirements under the Companies Act 2016.

Akta Syarikat 2016 - Pembahagian dividen / keuntungan

Tertakluk seksyen 132, syarikat boleh membuat pengagihan keuntungan kepada pemegang syer, jika syarikat dalam keadaan solven.

Syarikat dianggap solven sekiranya mampu membayar hutang dalam masa 12 bulan selepas pengagihan keuntungan dibuat. 

Uber and Grab drivers liable to pay income tax

The Inland Revenue Board (IRB) has confirmed that individuals operating the Uber and Grabcar car-ride services are not exempted from paying tax.

Its CEO Sabin Samitah said the drivers must include information on their earnings in their income tax forms and those who have an annual income of at least RM30,000 each are liable to pay tax.

He warned that the board could check on their incomes easily.

“We can get information on the list of drivers from Uber itself and can get details on the amounts the drivers have been paid,” he said at a press conference here.

PERS transition to MPERS

Please clarify if the entire Companies Act 2016 will be effected on 31 January 2017 or only the six services in MyCoid 2016 will be effected on 31 January 2017?

Once enforced on 31 January 2017, all provisions in the Companies Act 2016 will take effect except section 241 and Division 8 of Part III.

The six services under MyCoID is to facilitate the incorporation of companies under the new Act and related matters.

Apakah tanggungjawab pengarah setelah menerima notis peletakkan jawatan sebagai juruaudit syarikat?

Pengarah hendaklah:

1. Memanggil mesyuarat agung syarikat secepat mungkin yang praktikal untuk melantik juruaudit baru
2. Mendapatkan kebenaran secara bertulis daripada juruaudit yang dicalonkan
3. Memanggil dan mengadakan mesyuarat agung syarikat untuk melantik juruaudit baru

Audit brings financial discipline 

Audit necessitates the need to prepare proper accounts. This could save you money as the new Companies Act 2016 has imposed increased liabilities to company directors for failing to prepare adequate financial statements.

On conviction, the new Act imposes a fine not exceeding five hundred thousand ringgit or imprisonment for a term not exceeding three years or both. Audit is a major deterrent against fraud, money laundering and other illegal activities. 

Although the audit process is not designed to detect fraud, there is no doubt that in the absence of an audit, fraud and errors are more likely to occur and go undetected without any independent examination. 

"SMEs are generally without in-house financial and managerial expertise.

The accountants’ role in providing the necessary financial and management advice fills this gap.

 An independent audit also builds public confidence towards the integrity of financial statements and in nurturing the right corporate behaviour of SMEs. "

Datuk Dr Hafsah Hashim Chief Executive Officer SME Corp Malaysia

SOURCES : MIA