Petroleum Income Tax   It is proposed that the following expenditure be deducted from assessable income in ascertaining the chargeable income of a person under the Petroleum (Income Tax) Act, 1967 (PITA) :- a. Gift of paintings (the value to be determined by the Department of Museums and Antiquities or the National Archives) given to the Government or State Government. Presently, only gifts of artefacts or manuscripts are deductible. b. Gift of money or contribution in kind (the value to be determined by the local authority concerned) to the Government or State Government for the provision of facilities in public places for the benefit of disabled persons. c. Gift of paintings to the National Art Gallery and state art gallery, the value to be determined by these bodies. d. Cash donation or the cost or value as certified by the Minister of Health of any gift of medical equipment made to any healthcare facility approved by that Ministry not exceeding RM20,000. The above mirror similar amendments proposed to the Income Tax Act and will have effect from year of assessment 1998.       a. The time frame within which the Director General (DG) may raise an assessment or additional assessment has been reduced from the present 12 years to 6 years after the expiration of the relevant year of assessment. This amendment will have effect from January 1, 1999. b. Currently, the time frame within which the DG may make an assessment in respect of tax repaid to a person by mistake does not exceed twelve (12) years after the tax has been repaid. It is proposed that the period be reduced to 6 years. This amendment shall have effect from January 1, 1999. c. Currently, no claim for repayment is valid unless made within twelve years after the end of the year of assessment to which the claim relates. It is proposed that a claim for repayment be made within 6 years after the end of the year of assessment to which the claim relates. This amendment will have effect from January 1, 1999.

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