Homework 1: D09, Q2(b)

(b)
(i) Due date for submission of tax return

The annual tax return must be submitted by the end of the seventh month after the
close of the accounts.
Hence the due date for submission of the tax return for the year of assessment 2016
is seven months after the close of accounts on 30 September 2016 i.e. 30 April
2017.

(ii) Due date for the payment of any balance of tax

The balance of tax payable must be paid by the end of the seventh month after the
close of the accounts.
Hence the due date for payment of any balance of tax due for the year of assessment
2016 is seven months after the close of accounts on 30 September 2016 i.e. 30 April
2017.

(iii) Submission of tax estimate

The tax estimate for a year of assessment must be furnished not later than 30 days
before the commencement of the basis period.
Therefore, the tax estimate for the year of assessment 2017 must be furnished at
least one month before 1 October 2016 i.e. by the 31 August 2016.
Homework 2: JUN 11, Q1

1 (a) Tax computation for the year of assessment 2016- Don

RM RM

S4(b) Employment income

13(1)(a)

Salary 200,000

Bonus 20,000

220,000

13(1)(b)

Medical benefits from company (exempted) Nil

Leave passage – Sabah (exempted) Nil

Leave passage – Langkawi (exempted) Nil

Parking fees paid by employer (exempted) Nil

Discount given for Don’s child’s school fees

Nil
(employer's own services - fully exempted)

Adjusted/statutory income from employment 220,000

S4(c) Dividend income

Gain on disposal of shares (capital gain - not taxable) Nil

Dividend income (single tier exemption) Nil

S4(d) Royalty income

Royalty income from recording discs 11,000

Less: Exemption [under Paragraph 32]

(10,000)

Statutory income from royalty 1,000

Aggregate income 221,000

Less: Approved donation (not approved by DGIR) Nil

Total income 221,000

Less: Personal reliefs

Personal relief 9,000

EPF (restricted to maximum) 4,000

Child 2,000

Insurance premiums (medical and education for child (maximum)) 3,000

Fees for higher education (MBA) 4,900

Deposit to National Education Savings Scheme for his child

5,300
(maximum)

Lifestyle allowance (maximum) 2,500

Purchase of personal computer (3,500)

Purchase of sports equipment (1,000)

Books and newspaper (700)

Basic supporting equipment for disabled parent (maximum) 6,000

(36,700)

Chargeable income 184,300

Tax liability:

Tax on first RM100,000 10,900

Tax on next RM84,300 x 24% 20,232

Tax charged/payable 31,132

(b) Imran

YA 2015 Resident

He is present for a period of 182 or more days during the year 2015.

[s.7(1)(a)]

YA 2016 Resident

He is present for less than 182 days in the 2016, but it is linked by a

period of 182 consecutive days in the previous year (2015)

[s.7(1)(b)]
Homework 3: DEC 11, Q1

1 (a)
Tax computation for the year of assessment 2016-Alan
RM RM
S4(b) Employment income
13(1)(a)
Salary 120,000
Cost of living allowances 10,000
Entrance fee paid by employer 20,000
Professional fees paid by employer Nil
150,000
13(1)(b)
Car benefit (PV 5,000 X1/2 X 6/12mths) 1,250
Mobile phone and bills paid by employer (exempted) Nil
Domestic help (400 x 6 months) 2,400
3,650
13(1)(c)
Hotel accommodation benefit
3% x Section 13(1)(a)
3% x 150,000 = 4,500
1 /12 months x 4,500 375
Gross income from employment 154,025
Less: Professional subscription fees (paid by employer) Nil

Adjusted/statutory income from employment 154,025

S4(d) Dividend income (foreign source income exemption) Nil

Aggregate income 154,025

Less: Approved donation (in kind) Nil

Total income 154,025

Less: Personal reliefs
Personal relief 9,000
EPF 6,100 (maximum) 4,000
Life insurance premium 6,200 (max) 3,000
Child 2,000
Purchase of laptop 1,800
Purchase of sports equipment 600

(20,400)
Chargeable income 133,625

Tax liability:
Tax on first RM100,000 10,900
Tax on next RM33,625 x 24% 8,070

Tax charged/payable 18,970

(b) Tax computation for the year of assessment 2016 - Mary
RM RM
S4(a) Business income
Profit before tax 100,000
Add: Disallowed Expenses
Depreciation 10,000
Entertainment of bankers 1,000
Tax fees Nil

Adjusted income 111,000

Less: Capital allowances (4,000)
Statutory income 107,000
Less: Unabsorbed business loss brought forward (48,000)
Statutory income 59,000
S4(b) Employment income: Directors’ fee 12,000
Aggregate income 71,000
Less: Approved donation (restricted to 7% of aggregate income) (2,000)
Total income 69,000
Less: Personal reliefs
Personal relief 9,000
Life insurance premiums 1,000
(10,000)
Chargeable income 59,000

Tax liability:
Tax on first RM50,000 1,800
Tax on next RM9,000 x 14% 1,260
Tax charged 3,060
Homework 4: JUN 12, Q1

1) Tax computation for the year of assessment 2016-Farah

RM RM RM
S4(a) Business income
Adjusted loss (9,360)
Adjusted income Nil

S4(b) Employment income

13(1)(a) Salary
120,000
13(1)(b) Furniture benefit (280 x 12)
3,360
13(1)(c) Living accommodation benefit
Defined value
(a) (RM12,000-3,000) x 12 108,000
(b) 30% x RM120,000 36,000
Lower of (a) and (b)
36,000

Adjusted/statutory income from employment

159,360
S4(c) Single tier dividend income – tax exempt Nil

Aggregate income
159,360
Less: Current year adjusted loss from business
(9,360)

Total income
150,000
Less: Personal reliefs
Personal relief 9,000
EPF contributions (restricted to maximum) 4,000
Medical check-up for Farah (restricted) 1,500 500
Medical expenses for Farah’s serious disease
5,600 5,500
(Restricted to 6,000 = 6,000 - 500)

(19,000)

Chargeable income
131,000

Tax liability:
Tax on first RM100,000
10,900
Tax on next RM31,000 x 24%
7.440

Tax charged /payable

18,340
Homework 5: Pilot paper

1 Sanjay
Tax computation for the year of assessment 2016
RM RM
S4(a) Adjusted business income
Nil
S4(b) Employment income
13(1)(a) Salary and bonus 150,000
13(1)(b)
Car benefit as per table – annual value 5,000
Car used from 1 April to 31 December 2016= 9 months 5,000 x 9/12 3,750

Leave passage – (local trip) Nil

Domestic help (400 x 9) 3,600

Adjusted/statutory income from employment 157,350

Interest income on loan from sister 2,650
Fixed deposit interest (exempted) Nil
Aggregate income 160,000
Less: Current year adjusted loss from business (10,000)

Total income 150,000

Less: Personal reliefs
Personal relief 9,000
EPF contributions 12,100 (restricted to maximum) 4,000
Life insurance 3,100 3,000 (16,000)

Chargeable income 134,000

Tax on first RM100,000 10,900

Tax on next RM34,000 x 24% 8,400

Tax charged /payable 19,060

2 Divine Sdn Bhd
Tax computation for year of assessment 2016
S4(a) Business income RM RM
Profit before tax 580,000
Add/(Less)
Dividend income from China (10,000)
Foreign exchange loss – trade and realised Nil
Leave passage 6,000
Professional fees for company secretary (max deduction is 5,000) Nil
Depreciation 13,000
Entertainment expenses to suppliers (50% x 12,000) 6,000
Other deductible expenses Nil

Adjusted income 595,000

Less: Capital allowances
Current year assets
Cost/Qualifying Expenditure 100,000
– Initial allowance 20% x 100,000 20,000
– Annual allowance 10% x 100,000 10,000
(30,000)

Statutory income 565,000

Less: Unabsorbed losses brought forward (10,000)
555,000
S4(c): Dividend Income (foreign source income is exempted) Nil

Aggregate income/chargeable income 555,000

Tax on first RM500,000 at 18% 85,000

Tax on excess of RM55,000 at 24% 13,200

Tax charged/payable 98,200

3 Su San – Computation of chargeable income
RM RM
Consideration received 900,000
Less: Permitted expenditure
Enhancement costs – renovation expense (20,400)
Incidental costs:
Valuation fees (2,000)
Agent’s commission (1,000)

Disposal price 876,600

Consideration paid 820,000

Add: Incidental expenses relating to acquisition:
Quit rent and assessment (not eligible for deduction) Nil
Stamp duty 18,600
Less: Recovery- Insurance compensation (10,000)
Acquisition price (828,600)

Chargeable gain 48,000

Less: Schedule 4 exemption for individual
Higher of the following:
(i) 10% of Chargeable gain 10% x RM48,000, or 4,800
(ii) RM10,000 10,000
(10,000)

Chargeable gain 38,000

4 Greenhill Sdn Bhd – Industrial building allowance

(a) Industrial building allowance (IBA)
Assets acquired in 2015 RM
Qualifying building expenditure 1,500,000
Less: IBA for YA 2015
Initial allowance 10% (150,000)
Annual allowance 3% (45,000)

Residual expenditure 1,305,000

Less: IBA for YA 2016
Annual allowance (45,000)

Residual expenditure 1,260,000

(b) Assets acquired in 2016

Qualifying building expenditure for factory extension
Levelling of land (non-qualifying relates to land) Nil
Design fee for factory 18,000
Construction cost of factory 102,000

Qualifying building expenditure 120,000

Less: IBA for YA 2016
Initial allowance (12,000)
Annual allowance (3,600)
Residual expenditure 104,400
5 Already discussed in class, changed to SST

6 Lara – Resident status

Year of Resident
Basis
assessment status
He was in Malaysia for 90 days during the year of assessment 2015
and was resident in three out of the immediately four preceding basis
2015 Resident
years [under Section 7(1)(c)], ie he was resident for the years of
assessment 2012, 2013 and 2014.

He was resident in the following year of assesment (year of

assessment 2017) and was resident in the immediately three
2016 Resident
preceding basis years [under Section 7(1)(d)], ie he was resident for
the years of assessment 2013, 2014 and 2015.

7 Ira – Rental Income

S4(d) Rental Income RM RM
Gross rental income 24,000
Less: Allowable expenses
Quit rent and assessment 1,600
Interest on housing loan (3,200–200) 3,000
Replacement of old air-conditioner 500
New fridge for expatriate tenant Nil
Agent’s commission for collection of rent 1,200
(6,300)
Adjusted income/statutory income from rental 17,700
8 Bright Sdn Bhd – Compliance

(a) The due date for Star Sdn Bhd to notify the Inland Revenue Board of an employee who
has commenced employment and is likely to be chargeable to income tax , is within a month of
commencement of employment. Therefore, the due date would be one month from 1 March
2016, ie on or before 31 March 2016.

(b) The due date for Star Sdn Bhd to remit the schedular tax deducted to the Inland
Revenue Board is by the 15th of the following month. Therefore, the due date for the
schedular tax deducted relating to the March 2016 salary to be remitted to the Inland
Revenue Board is on or before 15 April 2016.

(c) Penalty for the excessive difference

RM
Final tax as per tax computation submitted 300,000
Estimated tax 100,000

Difference 200,000
Less: 30% of final tax (30% x 300,000) (90,000)
Excess 110,000

Penalty at 10% thereon 10% x 110,000 11,000

9 (a) Martha – Self-assessment tax return entries

RM Taxable/Exempt
Interest income from loan extended to friend’s company 300 Taxable
Rental income received from Singapore 12,000 Exempt
Single tier dividend from local listed company 750 Exempt
Dividend from shares invested in overseas company 2,000 Exempt

(b)
Box C2 0
Box C3 300
Box C4 0