ACW291 ADVANCED TAXATION

(Group Assignment) – 20%

Date Issued : Week 4

Date Due : Week 11

General Instructions:

1. Assignment must be typed by using Times New Roman font type with font size 12 and line
spacing (single or 1.5 lines).
2. Each group shall contain between three and five members (of different ethnic).

Assignment question:
Eventhough COVID-19 has been well contained, the disease has a significant impact on the global
economy and Malaysia. Therefore, the Government will introduce the 2020 Economic Stimulus
Package to ensure economic risks associated with the outbreak are effectively addressed. Do a
study comparing Malaysia with other countries (i.e Singapore, Japan, China, Thailand etc) on how
government assist tourism industry & individual in this critical moments. You should discuss from
the perspective of “tax incentives”. I provided some points for you to do. You can add in some
more points.

Your report should follow the format:

1. Abstract;
2. Aim of study;
3. Introduction, Problem Statement;
4. Literature Review (please go to USM library website to search for journals / articles)
5. Analysis and conclusion;
6. References;
7. Appendices (if any).

1
Guided area:

To assist businesses most adversely affected, the Government proposes for

a period of 6 months beginning from April until September 2020:

(1): To allow deferment of monthly income tax instalment payments for

businesses in the tourism sector. In addition, companies affected by the
COVID-19 to be allowed to revise their profit estimates for 2020 with
respect to monthly income tax instalment payments without penalty;

(2): To provide 15% discount in monthly electricity bills to hotels, travel

agencies, airlines, shopping malls, conventions and exhibitions centres;

(3): To exempt Human Resource Development Fund (HRDF) levies for

hotels and travel-related companies; and

(4): To exempt the 6% service tax for hotels. However, this exemption will
be made effective earlier, that is from March to August 2020.

(5): Bank Negara Malaysia (BNM) will provide a Special Relief facility
worth RM2 billion, particularly in the form of working capital for Small
Medium Enterprises (SMEs) at an interest rate of 3.75%; and

(6): Bank Simpanan Nasional (BSN) will allocate RM200 million in

microcredit facility offering an interest rate of 4% to affected businesses. In
addition, the approval process for existing loan funds will be further
streamlined such as Bank Pembangunan’s Tourism Infrastructure Fund of
RM1.5 billion.

(7): Government will provide double deduction on expenses incurred on

approved tourism-related training. The Government will also provide up to
RM100 million on a matching grant basis to HRDF to fund an additional
40,000 employees from the tourism and other affected sectors.

(8): pioneer status / investment tax allowance, industrial building

allowance (refer to Choong’s ADVANCED TAXATION textbook, pg 385-
392