2.1

what constitute sufficient records that a person other than a company or an individual needs to keep when carrying on a business or an activity;

3.1

A person other than a company, a co-operative or an individual [hereinafter referred to as person] [see paragraph 4.1] 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 business or the excess / deficit of income over expenditure from the activity for the basis period for any year of assessment to be readily ascertained.

• • 3.3.1

General requirementsA person should keep records including a cash book, a sales ledger, a purchases ledger and a general ledger. The type of books of account that should be kept will depend on the nature and the size of the business or activity. The following requirements should be complied with:A. The books of account 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).

B. 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.

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 Kep t

• • 3.4.1

The person may be required by the DG, at the expense of that person, to have his accounts audited by a professional accountant.

• 4.1

“Person other than a company or an individual” includes a Hindu joint family, a trust, an estate under administration, a club and an association.