JUDGMENT

Mohd Firuz Jaffril JCA:

A. Introduction

[1] The present appeal before us is by the Director General of Inland Revenue ("the Revenue") against the decision of the learned High Court Judge dated 14 December 2023. At the court below, the High Court Judge ("HCJ") had allowed the respondent taxpayer's ("the Taxpayer") appeal and set aside the decision of the Special Commissioners of Income Tax ("SCIT") dated 31 March 2022.

[2] This appeal raises fundamental questions about the proper interpretation of "employee" and "employment" under the Income Tax Act 1967 ("ITA"), and whether an independent non-executive director can be treated as an employee for tax purposes.

[3] We heard the appeal on 9 October 2025. Upon deliberation, this panel reached a unanimous decision to dismiss the appeal with costs, affirming the decision of the High Court.

B. Factual Matrix of the Appeal

[4] The salient facts are as follows: