Ask yourself this:
Instead of say "winning something" think of it as father gives the son a house. Will it get taxed? The answer is no.
However, when LHDN comes knocking on the door; one would still need to prove that it's a winning from legitimate company or a gift from some others.

Because either way, if it's a legitimate business; they would have declared the winning to LHDN. Thus a check and balance would spot a cheat.

This post has been edited by b00n: Dec 21 2010, 05:14 PM

Do not misunderstand yeah.
If like I say, a legitimate company; they would need to declare on their audit how much is "gifts". Or if they give company cars/apartment etc which is specific; they would declare in their audit too.

However, if we're talking about father giving an apartment to his son; then the "father" doesn't need to report to LHDN as there's nothing to "declare" in the 1st place to LHDN. However, if LHDN comes knocking; then one would need to proves by providing documents if any or maybe involving witness to clear the matter up.