07-03 - TAX MIA QE/MARCH 2007 ANSWER 1 (a) Computation of...

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TAX MIA QE/MARCH 2007 1 CONFIDENTIAL ANSWER 1 (a) Computation of Tax Payable for Natural Sdn. Bhd. For YA 2006 RM RM + - Net Profit before tax 1,612,000 Adjustments: Sales – market value (1) 392,000 Sales return (Overstated) (2) 10,000 Cost of sales (3) Provision 431,000 Remuneration (4) Salary – blind (d/d) 45,600 EPF 653,000 – (19% x 2,200,000) 235,000 Provision Retirement (6% x 2,200,000) 132,000 Selling and distribution: (5) Trade fare – Sydney (d/d) 290,000 Advertising NIL Professional fees (6) Audit and accountancy fees NIL Technical fees 46,000 Legal fees 20,000 Bank charges: (7) Interest – Stars Bhd. 38,000 Overdraft NIL Repairs and maintenance: (8) Upgrading 56,000 Re-surfacing NIL Machinery and vehicles NIL Rewiring NIL Renovation of office 340,000 Bad debts: (9) B/D written off 58,000 General provision 240,000 Specific provision NIL Bad debts recovered Forex: (10) NIL Stock purchase NIL Foreign loan 20,000 Plant – Taiwan 56,000 Trade debtors 29,000 Loss on sale of van (11) 21,000 Contributions: (12) National Library (mx 100,000) 57,000 Donation 300,000 Zakat 100,000
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TAX MIA QE/MARCH 2007 2 CONFIDENTIAL Research and development 150,000 Transport and travelling: (13) Marine insurance 210,000 Freight charges NIL Travelling allowances NIL Leave passage 15,000 Miscellaneous: (14) Medical insurance NIL Fire insurance NIL Losses – stock NIL Insurance claim 20,000 Traffic fines 8,000 Compensation: (15) Compensation to clients NIL Compensation – close down 325,000 Training (d/d) (16) 25,000 Depreciation 650,000 Amortisation of goodwill 200,000 Other income: Dividend 477,000 Interest 250,000 5,391,000 1,467,600 (1,467,600) Adjusted Business Income 3,923,400 (-) Balancing Allowance (3,100) (-) Capital Allowance (171,200) Statutory Business Income 3,749,100 (-) BF loss – Sec. 43 (2) (263,000) 3,486,100 Add: Other income: Dividend: Interim (14/1/06) 200,000 Final (1/3/06) 150,000 350,000 Champion Pte. Ltd. Exempt Interest (Overseas) Exempt Aggregate income 3,836,100 (-) Donation Approved institution – 300,000 (191,805) (subject to 5% Aggregate Y) Zakat 100,000 (95,900) (subject to 2.5% x Aggregate Y) Total/Chargeable Income 3,548,395 Tax @ 20% on RM500,000 RM100,000 Tax @ 28% on RM3,048,395 853,551 953,551 (-) Sec 110 Tax Credit (28% x 350,000) (98,000) Tax Payable 855,551
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TAX MIA QE/MARCH 2007 3 CONFIDENTIAL Working: Note 11: Van YA 2003 (y/e 31/10/03) QPE RM98,000 RM IA 20% (19,600) 39,200 AA 20% (19,600) RE 58,800 YA 2004 (y/e 31/10/04) AA 20% (19,600) 19,600 RE 39,200 YA 2005 (y/e 31/10/05) AA 20% (19,600) 19,600 RE 19,600 YA 2006 (y/e 31/10/06) Sold (1/10/06) (16,500) Balancing Allowance RM3,100 Note 19: Factory : AA 3% x 1,120,000 = RM33,600 Plant and Machinery: AA 20% x 340,000 = RM68,000 Computers: = RM36,000 IA 20% x 60,000 AA 40% Note 8: Upgrading : IA 20% x 56,000 AA 20% x 56,000
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This note was uploaded on 11/10/2010 for the course UM ceaa1122 taught by Professor Sam during the Spring '10 term at Calumet College.

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07-03 - TAX MIA QE/MARCH 2007 ANSWER 1 (a) Computation of...

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