Chang: Clear up ambiguity in tax exemption order
SIBU: Bukit Assek assemblywoman Irene Chang wants the government to clarify if the Income Tax (Exemption) Order 2017 is inclusive of all religious institutions in Malaysia.
At a press conference yesterday, she said that the order is good, but expressed concern that the order might not include mainstream churches because there could be two possible interpretations of the order.
According to the order, Section 2 (2) says a religious institution or organisation refers to (a) which is established in Malaysia exclusively for the purpose of religious worship or the advancement of religion and is not operated or conducted primarily for profit; and ( b) which is registered with the Registrar of Societies Malaysia or under any written law governing such institution or organisation.
“From this, there are two possible interpretations to this law; the first is that it covers all religious institutions as we expect it to be and what we want it to be.
“Howe v e r, t he s e c ond interpretation is that it covers only religious institutions or organisations established in Malaysia and are registered with the Registrar of Societies or registered under any written law,” she pointed out.
She said the problem is not all churches are registered under any written law such as mainstream churches.
She said the mainstream churches such as Methodist Church, Catholic Church, and the Anglican Church were not registered but were enacted.
According to her, in Sarawak, those three mainstream churches were enacted under Missionary Societies Ordinance whereas in West Malaysia, the Methodist Church was enacted under Methodist Act of Parliament, the Catholic Church was enacted under Titular Roman Catholic Bishop Act, and the Anglican Church under Synod Anglican Bishop Act.
As such, it is not clear whether those churches that are enacted are included in the order.
Other independent churches are registered either under Registrar of Societies, Registrar of Companies, Registrar of Commerce, or Registrar of Youth.
“If it is inclusive for all religious body, the order on Section 2 (2)( b) should be written as this ‘which is registered with the Registrar of Societies Malaysia or registered and enacted under any written law governing such institution or organisation,” she pointed out.
The ambiguity, she said, comes from the word ‘ registered’ and with such ambiguity, such interpretation could be challenged in the court.
“What I want the minister to come out with now is to clarify to everybody, put it in writing that the interpretation of this exemption order includes all the churches that are registered under ROS and all those enacted under Missionary Societies Ordinance and Acts of Parliament.
“For now, they will say of course, it is included, but come a day, when they want to look into possible loopholes, it can be argued that the mainstream churches are not in.
“Clarify now, so that there would be no other possible interpretation the next time to protect all religious institutions that are not registered under ROS,” she said, adding that Hindu bodies too might not be registered but enacted.