08-09 - TAX MIA QE/SEPT 2008 ANSWER 1(a Computation of Tax...

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TAX MIA QE/SEPT 2008 1 CONFIDENTIAL ANSWER 1 (a) Computation of Tax Payable by Quality Sdn Bhd YA 2008 RM’000 RM’000 Sec 4 (a) : + - Net Profit before taxation 10,032 Adjustments : Gain on disposal of shares 302 Rental 328 Cost of sales : Written off NIL Forex Loss 12 Remuneration : Disabled employees 312 Embezzled by managing director 124 Repairs and maintenance : Repairs of roof 30 Interest on hire purchase NIL Motor vehicles NIL Entertainment – sponsorship NIL Donation 114 Training and consultancy NIL Miscellaneous : Annual report 27 Leave passages 160 Legal fees on embezzlement 35 Forex gain NIL Freight and insurance NIL Bad debts : Written off 49 Recovery 31 Specific provision 43.5 General provision 367 Depreciation 1,980 Advertising NIL 12,606.5 1,340 (1,340) Adjusted Income 11,266.5 (-) Capital allowance : Brought forward 129 Current year 789 (918) Statutory Income 10,348.5 (-) See 43 (2) Loss b/f (387) 9,961.5
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TAX MIA QE/SEPT 2008 2 CONFIDENTIAL (+) Other Income : Rental from Singapore (exempt) NIL (Sch 6 Para 28) Aggregate Income 9,916.5 (-) Donation – health care centre (not allowed) NIL Total / Chargeable Income 9,916.5 Tax @ 20% on 500,000 = RM 100,000 Tax @ 26% on 9,416,500 = 2,448,290 Tax Payable 2,548,290 (14 marks) (b) Tan Sdn Bhd : YA (i) Revised Basis Period (ii)Revised Adjusted Profit /Loss (RM) 2002 1/3/02 – 31/12/02 1/3/02 – 30/9/02 = 65,000 (+) 1/10/02 - 31/12/02 3/12 x (40,000) = (10,000 ) 55,000 2003 1/10/02 – 30/9/03 1/10/02 – 31/12/02 RM10,000 is already absorbed in YA 02 since the period is overlapping 1/1/03 – 30/9/03 3/12 x (40,000) = (30,000 ) 2004 1/10/03 – 30/6/04 88,000 2005 1/7/04 – 30/6/05 (16,000 ) 2006 1/7/05 – 31/5/06 11/21 x 42,000 = 22,000 2007 1/6/06 – 31/3/07 10/21 x 42,000 = 20,000 2008 1/4/07 – 31/3/08 12,400 Note : Total months for both YA 06 and YA 07 is 21 months, thus the 21 months is apportioned between YA 06 and YA 07, YA 06 is 11 months and YA 07 is 10 months. ( 6 marks) (Total : 20 marks)
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TAX MIA QE/SEPT 2008 3 CONFIDENTIAL ANSWER 2 (a) Computation of Income Tax Payable for RM RM Sec 4 (a) : Adjusted income: NIL (+) Bal. charge 15,000 15,000 (-) Bal. all. 7,000 Cap. all. 2,000 Cap. all b/f 4,000 (13,000) Statutary income 2,000 Sec 4 (c) : Dividend : Maybank (5,840 x 100 ) = 8,000 73 (-) Interest (420) 7,580 Bersatu Cooperative Society (exempt) NIL Sec 4 (d) : Royalty - gross 92,000 (-) Exemption – sch 6 para 32B (20,000) 72,000 (-) Expenses (12,900) 59,100 Rental – gross (7,500 + 25,600) 33,100 (-) Rental deposit NIL Commission (1,300) Interest (2,400) Quit rent + assessment (2,600) Repainting (23,400) Renovation (cap. exp.) NIL Refund (not allowed) NIL Insurance ( 1,680 ) ( 31,380) Adjusted rental income 1,720 Aggregate income 70,400 (-) Current year loss (8,000) Approved donation : Cash (5,200) Book etc (not allowed) NIL Total income 57,200 add : wife’s total income (working) 31,150 Total income of family 88,350
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TAX MIA QE/SEPT 2008 4 CONFIDENTIAL
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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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08-09 - TAX MIA QE/SEPT 2008 ANSWER 1(a Computation of Tax...

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