SBC/CIR/059/2026

18th June, 2026


Dear Members and Pupils of the Selangor Bar,


The Selangor Bar Committee (SBC) wishes to inform Members and Pupils of the outcome of its recent engagement session with the Selangor Customs Department (Customs), which was held as part of ongoing efforts to strengthen collaboration and address issues affecting legal practitioners.


The meeting provided an opportunity for both parties to exchange views on matters relating to customs procedures, service tax compliance, and issues commonly encountered by legal practitioners. The following issues were raised and discussed during the meeting:


Payment of SST and Customs-Related Transactions


Customs clarified that while the online payment system is encouraged for SST and other payments, payment by cheque remains permissible until further notice.


Members should also note that cheques submitted to Customs are required to be sent via post or courier to facilitate proper acknowledgment and record-keeping by the Department.


Correspondence and Requests for Information


The SBC raised concerns regarding instances where letters seeking clarification from Customs, particularly in relation to seized premises and goods, had allegedly gone unanswered.


The Director of Customs informed that officers have been instructed to respond to all correspondence received and, where appropriate, assist legal practitioners by providing relevant information available to the Department. Customs reaffirmed its commitment to facilitating engagement and cooperation with members of the legal profession.


Verification of Documents


During discussions concerning fraudulent documents and scams, the SBC highlighted that certain court-related information may be verified through the Judiciary's e-Kehakiman portal, which is publicly accessible and does not require login credentials.


Proposed SST Briefing for Members


Customs proposed that a briefing session on Sales and Service Tax (SST) be organised for legal practitioners to provide updates and clarification on compliance requirements and current developments.


The SBC welcomed the proposal and agreed to collaborate with Customs in organising a briefing session for Members and Pupils of the Selangor Bar. Further details will be announced in due course.


Compliance Audits and Voluntary Disclosure Programme


The Customs Compliance Department informed the SBC that it is presently conducting audits on law firms categorised under Group G (Professional Services).


Members are reminded that law firms which have achieved the prescribed annual threshold may be subject to service tax obligations. Customs highlighted several compliance issues identified during audits, including:


o	Late registration;

o	Non-submission of tax returns;

o	Under-declaration of taxes; and

o	Issues relating to client monies or credits which are required to be claimed within twelve (12) months.


Customs also introduced its Voluntary Disclosure Programme, which provides participating taxpayers with certain benefits, including waivers of penalties and compounds, although any outstanding taxes remain payable.


Members were informed that failure to participate in the programme may expose taxpayers to compounds and penalties should compliance issues subsequently be discovered through a full audit exercise.


Tax Treatment of Disbursements and Reimbursements


The SBC raised concerns regarding differing interpretations among practitioners on the tax treatment of disbursements and reimbursements.


Customs acknowledged that this remains a technical area which may be subject to differing interpretations and emphasised the importance of continued engagement with the legal profession to provide greater clarity on these issues.


The SBC stressed that future engagement sessions should address practical issues frequently encountered by practitioners, including matters relating to disbursements, reimbursements, and taxation, to ensure meaningful participation and discussion.


Thank you.


Yu Ai Ting

Chairman

Selangor Bar Committee

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