snow ball

Saturday, 14 April 2018

Private entities exemption

Rationale : Dormant and small private companies will no longer need to conduct any audit engagement, due to there are being exempted from Companies Act 2016.
The dormant and small private companies is haven't runned the business in the ordinary course of business, moreover, those small private companies is have not enough wisdom of robustness working capital turnover in negotiating the business with the customers, supplier, bankers, government and also the stakeholders. Even the basic infrastructure like the advertisement board, utensil, furniture and fitting and office equipments.  
Even there is a working capital cash-flow problems, but the companies is still required to laid down the financial statement for tax computation purpose in submitting to the Inland Revenue Board.  
Given the fact that the business running for the intention to generate profit from the ordinary course of business.  Howevers, it would on taxable when there is profit from the business. But, it would chargeable when there is losses (liabilities) from the business. However, the sharing of liabilities would be assessed based on the equation : asset + liabilities = equities share capital

It depended how you utilize the assets like using machinery to manufacture into finished stock and sold out in generating the returns back in the free markets. Howevers, when you are dealt with your stakeholders, you are automatic developing self-identities mechanism in accepting, converting, transmitting and communicating the emission of business whether to take possession and granting the right to re-collecting the mutual accepted transaction that placed into your soul and heart. 

This is to make to reference the abilities of the companies is running overtrading in financing adequate funds and equities capital in order to make which parties in priority due to the cash outflow more than cash inflow ? 

Even a lot companies had a very dedicated teams of management in calculate all those financing equation such as liquidity ration, debtor and creditor management ration or gearing ratio. But ended of the day, you should make an enquiries to Inland Revenue Board, whether or do you have the desires and heart to encourage and motivate those small entrepreneurs to run their business by using their soul and heart. 

Or just acted like a perfectionist in the Tax line to force them to make a provision for audit fees, tax fees and accounting fees just to make compliance of financial statements and tax computation for IRB, ROC and Custom Boards either just for filling and collection of tax revenue purpose ?


Given the fact that obedience of the emotion business is having mutual respect their individual stakeholders righteousness by your soul and heart which is having mutual exchanged by a sense of faith to your lord of shepherd. 

If the business is having pressure in executing and launching all those stock holding in the stock warehouse, then you have developed your own temperament like having triangle love whether the income collected whether to pay to which suppliers, staffs and managements or banker or agency governments in priority sequences.

This is due to the companies is operating in the maturity of the fruits of lower trees which is often the last to ripen or top of trees which is often first to ripen.  Bear in mind, a lot of entrepreneurs would like to pick the harvest from the top to bottom, as the sacks of fruits they carry around their neck and shoulders grow heavier as they move downwards, working with gravity and not against it.

It caused erotomania relationships or delusional jealousy, just that the branches and blossoming flowers is just last ripen from the sacks of fruits they carry around their neck and shoulders that grow healthier that move downwards. It all just because the compassion and passion love relationships that are sowing in the early time from the love of lord like the apple trees sowing in the Garden of Eden. As the love seedless from the apple is a forbidden fruits that remind you could not break our oath, but keep the oath you have made to the lord. Matthew 5: 33 Oaths

What kind of forbidden fruits that the lord direct us to plant ?
Bear in mind that once our relationships between the shareholders and stakeholders in our love relationship become conflicting relationships either in quarreling, dispute, abandoning relationship, betrayal relationships, harassing and assault relationships, obsessive relationships and homosexuality relationships that triggered  our lust to eat the sinfulness forbidden fruits. The attempt to taste the forbidden  fruits is also considered as a poison fruits.

Once your business partners where does not have any blood relationships and do have blood relationships in their mind and appearance. They should not suspect and make doubtful to any business transaction to every business that are dealing and accepted with full disclosure, open, honest and integrity business in mind.  This is because if you started behave acted in a odd ways, like manipulate the accounting record, starting to understate the income and overstate the expenditures, just to acted in his own personal interest. 

These kinds of manner of business emotions is quite neurotic in his a way to treat their business relationships that are exposed hurting and inflicting business relationships to one anthers. Among of these, such as betrayal relationships, abandoning business relationships, rejection business relationships would cause someone to hurt one and another and develop sadism and always make trouble and problematic sadism psychological painful and emotional ailments. 

Especially, father (director) is bullied the wife(director) - husband and wife relationships is causing hurting and injured relationships due to masculine power from the man. It just because the husband want the wife to listen all his instruction and business ideas. Due to his temperament is not good at emotional intelligence business emotion, he would develop anger and rage in stimulate the violence to bully the staffs, harassment and assault to staffs and managements. With the intention the husband want everyone listen his instruction.



his primitive version of a couple, phantasised as in continuous intercourse, exhibits sadistic oral虐待口头 urethra尿道and anal features due to projections of infantile sexuality and sadism. Phantasies生命力about the maternal 母親般的 link to Klein's new understandings of primary femininity and both the male and female Oedipus complexes.恋母情结.



Under the Companies Act 2016, it appears that dormant companies and small private companies will no longer need to appoint auditors. This audit exemption will allow startups and SMEs to enjoy further cost savings in the running of their businesses.
Allowing for audit exemption also brings Malaysia in line with practices in other countries like the UK, Australia and Singapore.
As a starting point, section 267(2) of the Companies Act 2016 allows the Registrar of Companies to exempt any private company from the requirement to appoint an auditor for each financial year.
Now, the Companies Commission of Malaysia (CCM) has initiated a Public Consultation of Subsidiary Legislation under the Companies Act 2016. On its website, there are several draft guidelines and a draft consultation document, including the  draft Practice Directive (Audit Exemption) 2017.
It is proposed that there will essentially be two categories of private companies which will enjoy audit exemption. The information below is still subject to the final Practice Directive to be issued.
Dormant Companies
A private company will be exempted from having to appoint an auditor if:
(i) it has been dormant since the time of its formation; or
(ii) it has been dormant for three consecutive financial years.
A company is treated as being dormant when there has been no accounting transaction.
As a safeguard, any member or members holding at least 5% of the total issued shares, or at least 5% of the members, can still require such a dormant company to carry out an audit of its accounts for that financial year.
Small Companies
There is now a category known as a small company. This would be very relevant to startups and SMEs, since many may fall within the treatment of a small company. A small company need not appoint an auditor to audit its financial statements.
A company qualifies to be a small company by satisfying two of the three criteria for the period of two financial years immediately before the financial year:
(i) Revenue: Does not exceed RM300,000.00 for each financial year.
(ii) Total Assets: Does not exceed RM500,000.00 for each financial year.
(iii) Employees: Not more than 5 employees.
There are also references to how to treat the parent company, subsidiary or a group of companies as a small company or a small group of companies. This will allow such companies to also enjoy exemption from having to appoint an auditor.
Briefly as well, exempt private companies can enjoy such audit exemption if these companies comply with the above criteria for a dormant company or a small company as well.
Finally, although these companies may be exempted from audit, the companies must still lodge their financial statements with the Registrar of Companies. So these financial statements would be in its unaudited form.





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