TAR UC (FAFB) – RAC Year 3 (ACADEMIC YEAR 2022/2023)

BBFT3014/BBFT3013 ADVANCED TAXATION

Tutorial 11: Unit trust & Real estate Investment trust & Trust

Suggested answer to Q1(a)

(i) Permitted expenses: RM
Fund Manager's remuneration 600,000
Salaries & wages 0
Maintenance of register of unit holders 80,000
Audit fee 50,000
Secretarial fee 30,000
Tax compliance fee 0
Maintenance expenses (for its office) 0
Share registration expenses 28,000
Entertainment 0
Postage 9,000
Stationery 10,000
Cash donation 0
Depreciation 0
(A) 807,000

Rent 2,000,000
(B) 2,000,000

(B) 2,000,000
Single tier dividend (Malaysia, exempt) 260,000
Interest (bonds - exempt) 500,000
Gains from sale of one landed property 2,800,000
Loss from sale of shares 0
Gains from sales of shares listed in KLSE 1,940,000
(C) 7,500,000

(ii) Happy Fund Trust: Tax Computation For YA 2022 RM RM RM

Single tier dividend (Para. 12B of Sch. 6) Exempt
Interest (Para. 35 of Sch. 6) Exempt
Rent 2,000,000
Aggregate income (all sources) 2,000,000
Less: Fraction of permitted expenses
A x B / 4C = 807,000 x 2,000,000/(4 x 7,500,000) = 53,800
or 10 % of A = 10% x 807,000 = 80,700
whichever is the higher: 80,700
Less: Donation to Malaysian Government (cash) 200,000 280,700
Total income / Chargeable income 1,719,300

Tax payable: RM1,719,300 x 24 % 412,632.00