2.1

what constitute sufficient records that a company or a co-operative needs to keep;

3.1

A company or a co-operative is required under the Income Tax Act 1967 [hereinafter referred to as the Act ] to keep and retain in safe custody sufficient records to enable the income or loss of the company or co-operative for the basis period for any year of assessment to be readily ascertained.

• • 3.3.1

General requirementsA company or a co-operative must keep records and books of accounts including a cash book, a sales ledger, a purchases ledger and a general ledger. The type of books that should be kept will depend on the nature and the size of the business. These books of accounts should be written up at regular intervals. Appropriate entries for each transaction should be recorded as soon as possible (in any case not later than 60 days after the transaction). Supporting documents such as invoices, bank statements, pay-in slips, cheque butts, receipts for payments, payroll records and copies of receipts issued should be retained. Where the gross takings for a year exceeds RM150,000 from the sale of goods or RM100,000 from the performance of services, receipts issued must be serially numbered. A valuation of the stock in trade should be made at the end of the accounting period and the appropriate records maintained.A. The books of account should be written up at regular intervals.
Appropriat entries for each transaction should be recorded as soon as
possible (in any case not later than 60 days after the transaction).B. Supporting documents such as invoices, bank statements,pay-in slips,
cheque butts, receipts for payments, payroll records and copies of receipts
issued sould be retained.

C. Receipts issued should be serially numbered. Where the gross takings for a
year exceeds RM150,000 from the sale of goods or RM100,000 from the
performance of services, receipts issued must be serially numbered.

D. A valuation of the stock in trade or work in progress should be made at the
end of each accounting period and the appropriate records maintained

3.4

The Consequences if Sufficient Records Are Not Kept

• • 3.4.1

The chargeable income of the company or the co-operative may be determined according to the best judgement of the DG and an assessment made accordingly

4.1

“Records” include:4.1.1 books of account recording receipts and payments or income
and expenditure;
4.1.2 invoices, vouchers, receipts and such other documents as are
necessary to verify the entries in any books of account; and
4.1.3 any other records as specified by the DG.