Voluntary disposition, Rebus, CAR, Chargeable Gains Q7

Thomas Sim E3009

Q.
Explain the followings

(a) Voluntary Disposition inter vivos under  SA1949 (5 marks)

(b) The concept of Rebus Sic Sitanbus under Act 171 (5 marks)

(c) Contribution of Aids under Local Government Act 1976 (5 marks)

(d) Chargeable gain under RPGT Act 1976 (10 marks)

(25 marks, 2022 Q7)

A.
(a) SA1949 means Stamp Act, 1949. Voluntary disposition inter vivos means property being transferred from parents to child(ren) or vice versa. From 2020, this type of transaction will be levied 50% stamp duty. However, in 2023 Budget, it is been proposed that this is exempted (see below after the answer)

Below, please see extract from Skrine.

27 DECEMBER 2019

The Stamp Duty (Remission) (No. 2) Order 2019 (‘Remission Order’) was gazetted on 26 December 2019 and will come into operation on 1 January 2020.

The Remission Order remits 50% of the stamp duty chargeable on any instrument of transfer of any immoveable property operating as a voluntary disposition inter vivos from the donor specified in first column below to the recipient specified in second column below –

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The grant of remission under the Remission Order is subject to the following conditions –
  1. The instrument of transfer is executed on or after 1 January 2020; and
  2. The recipient is a Malaysian citizen.
In addition, the child must be a legitimate child, step child or child adopted in accordance with any law. This follows the standard set in RPGT Act, 1976 as under Interpretation, Sch 2 of RPGT Act, it is
“child” means a legitimate child, a step-child or a child adopted by an individual or the husband or wife of the individual in accordance with any law;
Ref:
*2023 Budget on stamp duty on transfer under "Love and Affection".
Ref:

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