"Decoding Fines and Penalties: A Simple Guide to the Companies Act 2016"

**Understanding Fines vs. Penalties in the Companies Act 2016 🧐💼

** Ever wondered what’s the difference between a **fine** and a **penalty** under the Companies Act 2016? Let’s break it down in simple terms! 🔹 

**Fine**: This is a monetary punishment imposed by the court for breaching the law. Think of it as a "legal slap on the wrist" for not following the rules. 🔹 

**Penalty**: This is a fixed amount you must pay for specific offences, often without going to court. It’s like a "pre-set fee" for breaking certain regulations. 

 Both are serious, but the key difference is how they’re enforced. Fines involve the court, while penalties are more straightforward. 

 Stay compliant and avoid unnecessary costs! 🚀💡 

 #AmazingCFO #AmazingCosec #CompaniesAct2016 #ComplianceMadeSimple #BusinessTips

Comments

Post a Comment

Popular posts from this blog

Tax Audit - Amount Due To Director vs. Due From Director

In corporate accounting in Malaysia, it’s essential to distinguish between “Amount Due to Director” and “Amount Due from Director” because each carries different accounting and tax implications. When you record an “Amount Due to Director,” you are acknowledging a liability ( credit side of Trial Balance, same as Revenue, also on credit side )  on your company’s balance sheet. This relates to genuine obligations the company has toward a director, such as unpaid salaries, bonuses, or advances that have not yet been repaid. In this case, the company owes money to the director, and the transaction must be properly documented to show that the payment is a regular, legitimate expense. If not clearly identified, such liabilities might be scrutinised by LHDN (Malaysia Inland Revenue Board) to ensure they are not misclassified in an attempt to reduce taxable income or mask non-deductible expenses. In contrast, an “Amount Due from Director” represents a receivable, meaning that the director...
Read more

Close down LLP -- Winding Up Process and Procedure

Image
To wind up a Limited Liability Partnership (LLP) in Malaysia, the process involves several steps governed by the Limited Liability Partnerships Act 2012 and requires coordination with various authorities, notably the Inland Revenue Board (LHDN) and the Companies Commission of Malaysia (SSM).  Here’s a detailed overview of the winding-up process: : : The LLP must be dormant, meaning it should not be carrying on any business or operations. All bank accounts must be closed, and there should be no assets or liabilities remaining. : Ensure that all debts, liabilities, and penalties under the LLP Act have been settled. This includes any outstanding tax obligations with LHDN. : All relevant employee registrations (EPF, SOCSO, EIS) must be closed before proceeding with the application for winding up. : Submit the final tax return (Form PT and Form E) to LHDN and obtain a written notice (CP7(PT) Form) confirming that there are no objections to the dissolution of the LLP....
Read more

Understanding Audit Exemption for SMEs in Malaysia: Why, What, and FAQs

  Audit exemption is becoming a widely discussed topic among SMEs in Malaysia, especially with the latest updates by the Companies Commission of Malaysia (SSM) through Practice Directive (PD) 10/2024 , effective from 1 January 2025.  SME owners need to clearly understand what audit exemption entails, the rationale behind it, and whether opting for exemption genuinely translates into tangible compliance cost savings. Why Audit Exemption—The Rationale The audit exemption framework in Malaysia was originally introduced on 4 August 2017 and recently expanded under the Practice Directive 10/2024 . Its main purpose is clear: To reduce the financial and administrative burdens of compliance, especially for micro and small private entities. To streamline administrative processes, improve efficiency, and enhance Malaysia’s competitive advantage as a business-friendly environment. ...
Read more