Malaysian High Court Holds Service Charges and Late-Payment Interest Integrally Connected to Credit‑Sale Transactions Qualify as Business Income

The Inland Revenue Board of Malaysia (IRBM) has published a case report on a recent High Court decision on whether service charges and late-payment interest from credit sales should be classified as business income under Section 4(a) or passive interest income under Section 4(c) of the Income Tax Act 1967. The taxpayer in the case is a Malaysian retailer specializing in consumer electronics and furniture, which sells products on credit as part of its business activity. The taxpayer argued th…