The objective of the Forum of Firms (Forum) is to promote consistent and high quality standards of financial reporting and auditing practices world-wide.
On 20 October 2010, the Transnational Auditors Committee (TAC), the Executive Committee of the Forum and a committee of the International Federation of Accountants (IFAC) issued a paper titled client acceptance and continuance which summarizes current client acceptance and continuance practices in several of the large network of international accounting firms and examines how asking the right questions can help ensure that only those clients that meet the same standards of quality as the audit firm be accepted and continued.
The paper focuses on how the large networks of international accounting firms have implemented the requirements of International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance, and Related Services Engagements in their client acceptance and continuance policies and procedures. The paper also discusses related tools and devices firms have employed to strengthen their client acceptance and continuance decision-making processes.
The paper can be viewed at the Institute’s website at http://www.mia.org.my/new/psp_auditandassurance_knowledgebase.asp.
Please be guided accordingly.
Wednesday, 27 October 2010
Sunday, 17 October 2010
Stamp Duty Exemption on Housing Loans/ Transfer Agreements
KUALA LUMPUR, Oct 15 (Bernama) -- In an effort to ensure every citizen owns a residential property, the government has proposed stamp duty exemption on instruments of transfer and loan agreements for residential property.
To encourage ownership of the first residential property, it has proposed that a stamp duty exemption of 50 per cent be given on instruments of transfer of a residential property priced not exceeding RM350,000.
The exemption is granted for the first residential property purchased by a Malaysian citizen and it can be claimed once only within the exemption period, Prime Minister, Datuk Seri Najib Tun Razak said on Friday.
Residential properties include terrace houses, condominiums, apartments or flats, he said when tabling the Budget 2011 at Parliament here.
The effective date for the exemption is for sales and purchase agreements executed between Jan 1, 2011 and Dec 31, 2012, said Najib.
As for the stamp duty exemption on loan agreements for residential property, he said there would be also a stamp duty exemption of 50 per cent for residential property prices not exceeding RM350,000.
This exemption is applicable for sales and purchase agreements executed from Jan 1, 2011 to Dec 31, 2012.
Service Tax increases to Six Per Cent
KUALA LUMPUR, Oct 15 (Bernama) -- The government has proposed that the service tax on all taxable services be increased to six per cent from five at present to generate additional tax revenue for national development.
The effective date of implementation of the proposal is Jan 1, 2011, it was stated in the Budget 2011 proposals tabled in Parliament Friday.
This rate is not applicable to credit cards where the service tax is charged at a specific rate of RM50 annually on principal cards and RM25 for supplementary cards.
More Taxpayers to get Relief, says IRB
KUALA LUMPUR, Oct 15 (Bernama) -- More taxpayers will get relief from the eligibility extension announced by Prime Minister Datuk Seri Najib Tun Razak in Budget 2011, Inland Revenue Board (IRB) Chief Executive Officer Tan Sri Hasmah Abdullah said on Friday.
She was referring to the extension of tax relief of up to RM5,000 to cover other expenses such as day care centre, cost incurred to employ caretakers for parents and other daily needs such as diapers.
"This eligibility extension will hopefully help reduce the burden of taxpayers who presently contribute about 20 per cent to IRB's tax collection," she told reporters at the Budget 2011 Special Line Operation Centre here.
She said that although the number of taxpayers claiming for relief would increase, this move would not affect tax collection because no new reliefs were introduced.
She said several tax exemptions were also extended like the excise duty exemption on national cars for the disabled which was extended to those with impaired hearing and speech.
On the special budget line, she said response from the public was encouraging with 20 calls received per hour on average.
News on Budget 2011 with Full Text of Speech, Attachments and Finance Bill
KUALA LUMPUR, Oct 15 (Bernama) -- Datuk Seri Najib Tun Razak on Friday tabled a RM212-billion budget for 2011 centred on four key strategies designed to transform Malaysia into a developed and high-income nation by 2020.
Tabling Budget 2011 in the Dewan Rakyat, he said the budget would emphasise efforts to "transform the national into a developed and high-income economy with inclusive and sustainable development, spearheaded by the private sector as well as focus on the well-being of the people".
Najib, who is also the finance minister, described the budget as laying the foundation for Malaysia to become an advanced nation and as a precursor "in our final efforts" towards achieving Vision 2020, which he said was nine years, two months and 17 days away.
The budget, which carries the theme "Transformation Towards a Developed and High-Income Nation", centres on four key strategies, which are Reinvigorating Private Investment; Intensifying Human Capital Development; Enhancing Quality of Life of the People; and Strengthening Public Service Delivery.
The prime minister said that to enhance private sector involvement in economic activities, the government would further intensify the Public-Private Partnership (PPP) initiative and implement in 2011 several PPP projects identified under the 10th Malaysia Plan through private investment of RM12.5 billion. The government would allocate RM1 billion from the Facilitation Fund.
Among the PPP projects are the Ampang-Cheras-Pandan Elevated Highway, Guthrie-Damansara Expressway, Damansara-Petaling Jaya Highway, West Coast-Banting-Taiping Highway, Sungai Dua-Juru Highway and Paroi-Senawang-KLIA Highway;
A 300-megawatt Combined-Cycle Gas Power Plant in Kimanis, Sabah, to increase electricity generation capacity to meet rising demand; and
The International Islamic University Malaysia Teaching Hospital in Kuantan, the Women and Children's Hospital as well as the Integrated Health Research Institute Complex in Kuala Lumpur;
The Academic Medical Centre, a joint venture between Academic Medical Centre Sdn Bhd and Johns Hopkins Medicine International as well as Royal College of Surgeons Ireland which involves private investment of RM2 billion.
Najib also said that the government would encourage the private sector to resume an active role in the economy through several high-impact strategic projects.
These projects included the Kuala Lumpur International Financial District (KLIFD) valued at RM26 billion, which would be implemented from 2011 by 1Malaysia Development Berhad (1MDB) in collaboration with Mubadala Development Company, an investment arm of the Government of Abu Dhabi.
Also, under the High-Impact Strategic Development, Najib announced the development of another landmark in Kuala Lumpur, a 100-storey tower to be named Wisma Merdeka.
The integrated development project costing RM5 billion will retain the Merdeka and Negara stadiums as national heritage. The tower will be completed by 2015 and the whole project by 2020.
Najib also said that the Mass Rapid Transit (MRT) in Greater Kuala Lumpur (Klang Valley), with an estimated private investment of RM40 billion, would be implemented from beginning 2011 and was expected to be completed by 2020.
Also to be implemented beginning next year is the development of the Malaysian Rubber Board land in Sungai Buloh covering an area of 2,680 acres by the Employees Provident Fund (EPF). It would be a mixed development comprising affordable houses as well as commercial, industrial and infrastructure facilities.
The entire development is estimated at RM10 billion and is expected to be completed by 2025.
Budget 2011, which allocated RM162.8 billion for operating expenditure and RM49.2 billion for development expenditure, also outlines strategies and incentives to revitalise the capital market, including the Islamic capital market, and intensify the venture capital industry.
As part of the effort to reinvigorate private investment, Najib also said that the Bumiputera Property Trust Foundation (BPTF) would provide opportunities for bumiputera ownership of prime commercial properties in major towns.
"The BPTF will establish a fund to enable ownership of prime commercial properties in the Klang Valley, through a group ownership scheme," he said.
For this, he said, the BPTF would launch a syariah-compliant Bumiputera Property Trust Scheme this year with a size of RM1 billion.
The government would also launch a Private Pension Fund next year to revitalise capital market activities.
"This fund will benefit private sector employees and the self-employed," Najib said, adding that the existing income tax relief of up to RM6,000 for employees' contributions to the EPF would be extended to the contributions made to the pension fund, including the self-employed.
Under the strategy of intensifying human capital development, the prime minister said the government would establish Talent Corporation under the Prime Minister's Office early next year. Talent Corporation will formulate a National Talent Blueprint and develop an expert workforce database as well as collaborate closely with talent networks globally.
Najib also said that the government would expand access to quality education, and the national education system would be revamped to focus on thinking skills, character building, creativity, innovation and competitiveness.
"For the Ministry of Education, a sum of RM6.4 billion is allocated for development expenditure to build and upgrade schools, hostels, facilities and equipment, as well as to uphold the status of the teaching profession," he said.
The government would strengthen early education, primary and secondary education and higher education and intensify training and skills programmes.
Najib also announced the 1Malaysia Training Programme which would begin in January next year with an allocation of RM500 million.
Of the sum, RM200 million is allocated to conduct part-time training in the evenings and weekends at selected training centres nationwide. It will be conducted by community colleges, national youth training institutes, Giat Mara centres and industrial training institutes.
Najib also said that the government was committed to expediting the transformation process through implementation of the projects and programmes under the 10th Malaysia Plan, the National Key Results Areas (NKRAs) and the National Key Economic Areas (NKEAs).
He said the transformation process was holistic, encompassing economic, social and political aspects.
"The 2011 Budget is formulated with firm determination to bring significant changes to the nation's development and well-being of the people," he said, adding that the budget had taken into account the needs of all the people of Malaysia.
"This budget is possible due to the efficient and prudent financial management thus far," he said.
Najib said the government upheld the concept of 1Malaysia as the fundamental philosophy in driving the nation's development path. "The Government Transformation Programme (GTP) and Economic Transformation Programme (ETP) will be a guiding force in this journey," he added.
"The six NKRAs and the New Economic Model with its eight Strategic Reform Initiatives will be the framework for the nation's economic transformation," he said, adding that the implementation of the development programmes would be realised through the 10th and 11th Malaysia plans.
Under the strategy to intensify human capital development, Najib announced the establishment of a National Wage Consultation Council as the main platform for wage determination to raise productivity.
The council will comprise representatives from employers, trade unions, non-unionised employees, government agencies, academia, NGOs and individuals. Its secretariat will be at the Human Resources Ministry.
Najib said the National Wage Consultation Council would determine the rate and mechanism of minimum wage.
Other measures to intensify human capital development include expanding women's participation in entrepreneurship and intensifying training and skills programmes.
Under the third strategy of enhancing the quality of life of the people, the government will, among other things, allocate RM1.2 billion to the Women, Family and Community Development Ministry to carry out various welfare and community programmes.
The government would also increase house ownership and enhance the quality of life of the rural people, said Najib.
A sum of RM6.9 billion is allocated for the implementation of basic infrastructure such as water supply, electricity, and rural roads.
Of the amount, RM2.1 billion is for the construction and upgrading of rural roads in Sabah and Sarawak, and RM696 in the peninsula.
Meanwhile, RM1.5 billion is allocated to provide rural water and electricity supply in Sabah, RM1.2 billion for Sarawak and RM556 million for the peninsula.
Najib said the government would also implement housing aid programmes for the poor and hardcore poor with an allocation of RM300 million.
This programme involved the construction and repair of 12,000 units of houses throughout the country especially in Sabah and Sarawak.
The government will also provide a Special Mobile Unit for the National Registration Department for the convenience of the people in remote areas in Sabah, Sarawak and peninsular Malaysia to register their citizenship.
Najib said the government would continue to simplify private sector transactions with the government agencies to strengthen the public service delivery.
For this purpose, the MyCoID Gateway initiative which uses the sole reference provided by the Malaysian Companies Commission for transactions would be extended to other agencies and ministries.
Persons with Disabilities (Registration and Issuance of Kad OKU) Regulations 2010
The Regulations amongst others provide for the application for registration as a person with disability.
P.U. (A) 344 of 2010; 7 October 2010
HIGHLIGHTS FROM BUDGET 2011
- Service tax will be increased from 5% to 6% and to cover pay television services – bad news for Astro, restaurants and the hospitality sector;
- EPF and Permodalan Nasional Berhad will undertake RM10bn Sungai Buloh housing projects and RM5bn 100 storey tower respectively – good for property sector;
- First time house buyers will obtain a 100% loan without having to pay the 10% down payment for houses below RM220k through “Skim Rumah Pertamaku” and given stamp duty exemption of 50% for houses not exceeding RM350k – good for property sector;
- Full import duty and 50% excise duty exemption was granted to franchise holders of hybrid and motorcycles up to 2010 and full excise duty exemption up to 2011 – good for UMW and Honda but bad for local manufacturer, Proton;
- Import duty of 300 goods preferred by tourists and locals, at 5% to 30% will be abolished – good for retailers and shopping mall operators;
- Sales tax of 10% will be abolished for all mobile phones – good for all the telecommunication companies;
- RM6.4bn to build and upgrade schools, RM213m allocated to high performance schools, increase pre-school enrolment rate to 72% through additional 1,700 classes, RM575m for scholarships, RM213m to strengthen language skills – good for education sector;
- Government to introduce minimum wage rate and increase the levy for foreign workers – bad for businesses generally as cost will increase;
- Toll rates in 4 highways operated by PLUS Expressway will not be raised for the next 5 years – bad for toll operators, setting precedent that no toll hikes for other operators;
- Three new stock-broking licenses will be introduced for locals and foreigners – bad for stockbrokers as competition will intensify.
Tuesday, 12 October 2010
Many Traders Unclear on Malaysian Competition Act
ALOR SETAR, Oct 12 (Bernama) -- Many traders are still vague on the Competition Act 2010 which will be enforced on Jan 1, 2012 although it is aimed at creating a competitive business environment.
The Head of the Interim Competition Commission Unit, Ministry of Domestic Trade, Cooperatives and Consumerism, Shila Dorai Raj, said although there was no objection from traders and members of the public on the enforcement of the act, many business associations were still concerned that the act would affect their operations.
She said that as such, the unit would intensify efforts to give briefings on the act throughout the country from time to time.
"We have conducted briefings in Sabah, Sarawak, Johor and Negeri Sembilan. Today, we are in Kedah and Penang. We were given 18 months (before January 2012) to introduce the act to the business community," she said when met after the Malaysian Competition Act 2010 Introductory Seminar attended by about 200 people, here Tuesday.
It will prevent monopolistic activities and abuse of one's dominant position.
She said the implementation of the act could attract more foreign investors into the country because the open competition gave them more confidence.
IRB hotline to open on Friday
KUALA LUMPUR: The Inland Revenue Board will open its 2011 Budget Special Hotline Operations Centre on Friday from 7pm to 10pm.
“This will allow the public to obtain further information on any tax-related issues after the delivery of the budget speech by Prime Minister Datuk Seri Najib Tun Razak,” it said in a statement yesterday.
The public can call the following numbers for enquiries: 03-62015975/976/981 and 03-62016027/031/035/037/041. – Bernama
http://thestar.com.my/news/story.asp?file=/2010/10/13/nation/7212110&sec=nation
Employment Bill withdrawn
The Employment (Amendment) Bill 2010, which was listed for second reading in the Dewan Rakyat, has been withdrawn.
Deputy Human Resources Minister Datuk Maznah Mazlan withdrew the bill, which was first tabled on July 8.
When contacted yesterday, Human Resources Minister Datuk Dr S. Subramaniam said the bill was withdrawn to enable the ministry to initiate changes and add more amendments.
He added that the bill would be re-tabled during this Parliament sitting.
To a question, Dr Subramaniam denied that the bill’s withdrawal was related to a nationwide picket organised by Parti Sosialis Malaysia (PSM) in seven places yesterday.
PSM had called for a picket to reject the proposed amendments of the bill and described them as the worst amendments made to labour laws.
Among the proposed amendments to the Bill included a move to fine employers up to RM10,000 for turning a blind eye to sexual harassment, provide better protection to pregnant workers and penalise employers who terminate the services of women employees during their maternity leave.
The bill also stipulates that wages of domestic helpers would have to be paid directly into their bank accounts.
The proposed amendments were met with differing opinions by NGOs and employers.
The MTUC supported the amendments of sexual harassment as such cases were usually ignored when a high-ranking personnel was involved.
The Malaysian Employers Federation said the bill on sexual harassment gave the impression that employers did not care about the problem.
Meanwhile, M. Kulasegaran (DAP - Ipoh Barat) has called for a review of the Industrial Relations Act 1967.
He said present regulations gave sole power to the Human Resources Minister to decide whether to refer a case to the Industrial Relations Court.
“The minister is the prosecutor, judge and jury. We feel that is not right,” he told reporters at the Parliament lobby.
Kulasegaran said aggrieved employees should be allowed to institute legal action against their employers freely, just as in civil suits.
Abdullah Sani Abdul Hamid (PKR - Kuala Langat) and M. Manogaran (DAP - Teluk Intan) called for a review of Section 20 (3) of the Industrial Relations Act, which gave the minister discretion to refer cases to the court.
http://thestar.com.my/news/story.asp?file=/2010/10/13/parliament/7210907&sec=parliament
Employment Act (Amendment) Bill Withdrawn
KUALA LUMPUR, Oct 12 (Bernama) -- The government pulled back the Employment Act (Amendment) Bill 2010 which was due for second reading at the Dewan Rakyat Tuesday.
The withdrawal was announced by Deputy Human Resources Minister Datuk Maznah Mazlan.
Human Resources Minister Datuk Dr S. Subramaniam, when contacted, said the withdrawal was made to enable several changes to be made and provisions to be added.
He denied that the withdrawal was prompted by the proposed pickets by Parti Sosialis Malaysia (PSM) at seven locations to air its objection against several bills proposed by the ministry.
Subramaniam said the Employment Act (Amendment) Bill would be tabled again after the changes were made.
The bill, which was tabled for first reading on July 8, among others, covered sexual harassment, welfare and domestic help.
Wednesday, 6 October 2010
MIA-CTIM Budget Hotline for Public
Source: MLTIC
The Malaysian Institute of Accountants (MIA) in collaboration with the Chartered Tax Institute of Malaysia (CTIM) will hold the Budget Hotline 2011 which is open to the public on Saturday, 16 October 2010. The hotline will be operating from 9.00 am to 12.00 noon.
The hotline will be managed by a panel of tax consultants drawn from the major accounting firms. The main purpose of the above hotline is to provide a convenient channel for the public to seek advice from tax experts on the implication of any changes to the income tax law affecting individuals and businesses, investment incentives and other pertinent issues. The number to call is 03-2274 5055.
Tuesday, 5 October 2010
Single halal certificate beginning April
PUTRAJAYA: The single halal logo and certification will come into force by April next year, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.
He said the draft of the amendments to the Trade Description Act 1972 that would allow for a single Malaysian halal logo and certification was finalised at a meeting between the ministry and the Islamic Development Department (Jakim) yesterday.
He said all the state religious departments had agreed to the amendments and the draft given the green light by the Attorney-General’s Chambers.
“The draft (Bill) will be tabled in Parliament later this month and we expect to have it gazetted and enforced by April next year,” he said at a joint press conference with Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom here yesterday.
One of the amendments is to standardise the issuance of the halal logo and certification in all states.
Jamil Khir said once the new logo and certification came into force, manufacturers and companies could no longer get their halal certification from private companies.
Fears have been raised in the past on the risk that certification from private agencies did not strictly adhere to standards or requirements and that enforcement and monitoring might also be lacking.
Jakim Halal Hub Division director Saimah Mukhtar said all applications for certification would be processed within a month.
She said this was made possible because the state religious departments would be empowered to conduct the necessary checks and issue the approvals on its behalf.
“This includes products for export, which previously had to be certified direct by Jakim,” she added.
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