5/10/2022

RES619
REVENUE LAWS
Lecture 3
Local Government Act 1976 : Penalty
and Charges

Licences

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Licences
• Section 107 (1), describes the fees may charge
on the producing licences :-
– may prescribe the fees for such licence or permit
and the charges for the inspection or supervision
of any trade, occupation or premises in respect of
which the licence is granted.

Process to Produce the License

• Section 107 (1A), (2), (2A) and (3) describe the process
of issuing the licences :-
– May issued jointly with any other licence or permit.
– subject to such conditions and restrictions as the local
authority may think fit and shall be revocable by the local
authority at any time without assigning any reason
therefor.
– The revocation of any particular licence or permit issued
jointly with any other licence or permit shall not affect the
validity of any other licence or permit with which it had
been jointly issued.
– The local authority may refuse to grant or renew any
licence without assigning any reason therefor.

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Validation Period
• Section 107 (4) describes the validation period
of licences as follow:-
– A licence shall be valid for a period not exceeding
three years.

Exhibit the Licence

• Section 107 (5), requires to exhibit the licence :-
– Every person to whom a licence has been granted
shall exhibit his licence at all times in some prominent
place on the licensed premises and shall produce such
licence if required to do so by any officer of the local
authority authorized to demand the same.
• Section 107 (6), charges and offences :
– Any person who fails to exhibit or to produce such
licence shall be guilty of an offence and shall on
conviction be liable to a fine not exceeding five
hundred ringgit or to imprisonment for a term not
exceeding six months or to both.

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Licences
• Section 107 (7) and (8) describe other
requirements regarding the licence:-
– any reference to the word “licence” shall include
its certified true copy.
– The certification of any licence as a true copy shall
be made by the President, Secretary or any officer
authorized by the President in writing.

Notices etc.

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Definition of Notices
• In the Section 108 (1), states the meaning and
definition of the notices :-
– Notices, orders, warrants, licences, receipts and
other similar documents may be in print or partly
in writing and partly in print.

Serve the Notices

• In the Section 108 (2), states the Service of a
document on any person shall be effected :-
– by delivering the same to such person or by delivering
the same at the last known place of residence of such
person to an adult member of his family;
– by leaving the same at the usual or last known place
of residence or business of such person in a cover
addressed to such person; or
– by forwarding the same by post in a prepaid letter
addressed to such person at his usual or last known
place of residence or business.

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Delivering the Notices

• In the Section 108 (3), states the following
provisions:-
– A document required to be served on the owner or
occupier of any premises shall be deemed to be
properly addressed if addressed by the description of
the “owner” or “occupier” of such premises without
further name or description and may be served by
delivering the same to some adult person on the
premises or,
– if there is no such person on the premises to whom
the same can with reasonable diligence be delivered,
by fixing the same on some conspicuous part of the
premises.

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Default in compliance with notice or

order
• Section 109 :-
– Where any notice or order requires any act to be done
or work to be executed within a period specified
therein by the owner or occupier of any premises and
default is made in complying with the requirement of
such notice or order, the person in default shall be
guilty of an offence and shall, where no fine is
specially provided for such default, on conviction be
liable to a fine not exceeding five hundred ringgit or to
a term of imprisonment not exceeding six months or
to both.

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Penalties

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Penalties
• Penalty for obstructing Councillor and others (Sect. 112)
• Recovery of expenses (Sect. 113)
• Expenses and costs payable by owners (Sect. 114)
• Recovery of expenses or costs from persons in default
(Sect. 115)
• Recovery of charges for local authority services (Sect. 116)
• Recovery by instalments (Sect. 117)
• Compensation, damages and costs to be determined by
courts of competent jurisdiction (Sect. 118)
• General penalty (Sect. 119)

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Penalty for obstructing Councillor and

others (Sect. 112)
• Any person who at any time obstructs, molests or
assaults the Commissioner of the City of Kuala
Lumpur, or the Mayor or President, Councillors,
officers or employees of a local authority in the
performance and execution of their duty or
removes any mark set up for the purpose of
indicating any level or direction necessary to the
execution of works shall be guilty of an offence
and shall on conviction be liable to a fine not
exceeding two thousand ringgit or to a term of
imprisonment not exceeding six months or to
both.

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Recovery of expenses (Sect. 113)

• Whenever default is made by the owner of any
premises in the execution of any work required to
be executed by him, the occupier of such
premises may, with the approval of the local
authority, cause such work to be executed and
the expense thereof shall be paid to him by the
owner or the amount may be deducted out of the
rent from time to time becoming due from him to
such owner and such occupier may, in the
absence of any special agreement to the contrary,
retain possession until such expense has been
fully reimbursed to him.

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Expenses and costs payable by owners

(Sect. 114)
• Any sums payable by or recoverable from the owner in respect of
expenses or costs incurred by the local authority in the execution of
any work shall, subject and without prejudice to the rights of the
State, be a first charge on the premises in respect of which such
expenses or costs have been incurred.
• In addition to any other remedies conferred by this Act any such
sum may be recovered by the same means and in like manner as an
arrear of rates.
• The charge shall attach and the powers and remedies shall become
exercisable as from the date of completion of the work and
thereafter such powers and remedies may be exercised against the
premises or against any movable property or crops for the time
being found thereon, notwithstanding any change in the ownership
or occupation of the premises subsequent to the said date.

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Recovery of expenses or costs from

persons in default (Sect. 115)
• Where the local authority has incurred
expenses or costs in the execution of any
work, it may recover such expenses or costs
from the person in default and if such person
is not the owner of the premises from the
owner thereof in the manner provided under
section 114.

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Recovery of charges for local authority

services (Sect. 116)
• All moneys due to a local authority for local authority services shall
be recoverable by the local authority jointly and severally from the
owner and occupier of the premises in respect of which the
services were rendered:
• Provided that—
– the owner shall, in the absence of any agreement to the contrary, be
entitled to recover from the occupier of the said premises any such
charges paid by him in respect of the occupation by such occupier; and
– the occupier shall be entitled to deduct from any rent or other amount
payable by him to the owner of the premises any portion of such
charges paid by or recovered from him which the owner could not
lawfully have required him to pay.
• A local authority may charge and recover interest on unpaid charges
for services at a rate not exceeding one per centum per month or
part of a month.

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Recovery by instalments (Sect. 117)

• Where any sum is payable by any person to the local
authority for any purpose under this Act the State
Authority may permit such person to pay the said sum
in instalments with interest thereon at such rate as the
State Authority may determine.
• Upon default in payment of any instalment or interest
upon the date appointed for payment thereof, the
whole of the balance then outstanding of such amount,
together with any interest in arrears, shall immediately
become due and payable and, notwithstanding any
change in the ownership or occupation of the
premises, may be recovered by the same means and in
like manner as an arrear of rates.

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Compensation, damages and costs to be determined

by courts of competent jurisdiction (Sect. 118)

• Where compensation, damages, costs or

expenses are disputed the amount and, if
necessary, the apportionment of the same
and any question of liability shall be
summarily ascertained and determined by a
court of competent jurisdiction.

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General Penalty (Sect. 119)

• Every person who is guilty of any offence
against this Act or any by-law, rule or
regulation for which no penalty is expressly
provided shall on conviction be liable to a fine
not exceeding two thousand ringgit or to a
term of imprisonment not exceeding one year
or to both.

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Prosecutions

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Local authority may direct prosecution

(Sect. 120)
• The local authority may direct any prosecution
for any offence under this Act or any by-law,
rule or regulation and shall pay such expenses
as may be incurred in such prosecution.
• Any advocate and solicitor authorized in
writing by the local authority or any officer of
the local authority may conduct any such
prosecution.

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Power of arrest (Sect. 121)

• Any officer of the local authority authorized by the local
authority or any police officer may arrest without warrant
any person who commits in his presence or whom he
reasonably believes to have committed any offence under
this Act or any bylaw, rule or regulation—
– if the name or address of the person is unknown to him and the
person declines to give his name and address; or
– if there is reason to doubt the accuracy of the name or address.
• A person arrested under this section shall be detained and
shall be brought before a Magistrate’s Court within twenty-
four hours unless his name and address are sooner
ascertained.

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Books of Local Authority to be Prima

Facie Evidence of Sums Due (Sect. 122)
• The books and registers of any local authority
and any extracts there from certified by the
Secretary or any other officer authorized
thereto by such local authority shall, in any
proceedings for the recovery of any fee, or
charge payable under this Act or under any
by-law, rule or regulation, be prima facie
evidence of the amount so due.

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Liability for Acts and Omissions (Sect.

123)
• For the purposes of any prosecution for an offence under this Act or under
any by-law, rule or regulation—
– whenever any agent or employee in the course of his employment does or
omits to do an act the doing or omission to do which by his principal or
employer would be an offence, such agent or employee shall be guilty of that
offence, and his principal or employer and any person who at the time of the
act or omission was in charge of the business in respect of which the act or
omission occurred shall also be guilty of that offence unless such principal or
employer or other person, as the case may be, proves to the satisfaction of
the Court that having regard to all the circumstances he took all reasonable
means and precautions to prevent such act or omission;
– where any offence has been committed by any body corporate, any person
who at the time of the commission of such offence was a director, general
manager, secretary or other similar officer of the body corporate or was
purporting to act in any such capacity, shall be deemed to be guilty of that
offence unless he proves that the offence was committed without his consent
or connivance and that having regard to the nature of his functions in that
capacity and to all the circumstances he took all reasonable means and
precautions to prevent the commission of the offence.

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Protections

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Public Authorities Protection Act 1948

(Sect. 124)
• The Public Authorities Protection Act 1948,
shall apply to any action, suit, prosecution or
proceeding against any local authority or
against any Councillor, officer, employee,
servant or agent of any local authority in
respect of any act, neglect or default done or
committed.

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Protection of Councillors, Officers and

Employees from Personal Liability (Sect. 125)
• No matter or thing done and no contract entered into by
the Commissioner of the City of Kuala Lumpur or by the
Mayor or President, Councillor, officer or employee of the
local authority or by any person acting under the direction
of a local authority shall, if the matter or thing was done or
the contract was entered into bona fide for the purpose of
carrying out the provisions of this Act or of any by-laws,
rules, or regulations subject him personally to any action,
liability, claim or demand whatsoever.
• Any expense incurred by the Commissioner of the City of
Kuala Lumpur, Mayor or President, Councillor, officer or
employee or person under subsection (1) shall be borne
and paid out of the Local Authority Fund

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Officers to be Public Servants (Sect.

126)
• The Commissioner of the City of Kuala
Lumpur, Mayor or President, Councillor,
officers or employees of every description
shall be deemed to be public servants within
the meaning of the Penal Code [Act 574].

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Q & A sessions

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