QUESTION 1
PART A
Maimon took fashion design course during her study at one of the local universities in Malaysia in January 2011 and she completed her study after three years. Then, Maimon was employed as a fashion designer right after her graduation by Gorgeous Bling Couture, a well-known boutique in Malaysia. Her job as a fashion designer requires her to have frequent overseas travel.
DTX5014 Taxation Assignment-Multimedia University Malaysia.

The following are the particulars of her whereabouts in the periods of Year Assessment (YA) 2014 until 2019:

Additional informations:
1. Maimon attended a short course in China from 29.12.2015 until 2.1.2016.
2.From 1.2.2016 until 31.3.2016, Maimon was in Thailand to assist the staff for newly opening outlet of Gorgeous Bling Couture.
3. Maimon visit his boyfriend in Malacca, Malaysia from 14.7.2016 until 20.7.2016.

Instruction:
Determine the residence status of Maimon for the year of assessment 2014 to 2019. Give reasons and quote the relevant provisions of the Income Tax Act (ITA) 1967 to support your answer.

PART B
Compute the following ‘persons’ income tax payable for Year of Assessment (YA) 2019 under their respective independent situations:
(a) Chu Kang is a professional engineer from China with a fixed monthly salary (net) of RM 7,200. He also stays in Malaysia for 254 days consecutively for YA 2019.
(b) Keketam Berhad was formed on 1 April 2009 with paid up Ordinary Share Capital of RM3,250,000. The company has five shareholders and their main activity is manufacturing shoes. In YA2019, the company have gross income of RM245,000 and total expenditure of RM96,200.
(c) Work as a part time model made Nelly, an Italian has to travel around the globe including Malaysia. She has been in Malaysia twice from 2.2.2019 until 10.2.2019 and 8.12.2019 until 25.12.2019. Nelly received RM52,500 chargeable income for YA2019.
(d) Gopali Sdn Bhd was commenced since 2015 with accounting period ended on 31 August each year. The company has chargeable income of RM620,400 at the end of the basis period and it’s paid up Ordinary Share Capital is RM2,000,000.
(e) Senah is 40 years old and she was born in Malaysia. She never left Malaysia since then except in year 2017, she has a family trip for two weeks in Istanbul. Senah worked as senior clerk at Mentari Mentara Sdn Bhd with chargeable income of RM4,900 for YA2019.

DTX5014 Taxation Assignment-Multimedia University Malaysia.

QUESTION 2
PART A
On 1 March 2015, Bokittys Sdn Bhd commenced their business with an authorized capital of RM2,000,000 of Ordinary Share Capital. After a month, the company started preparing their first set of accounts until end of December 2015. In the midst of December 2015, the company decided to change the accounting date to 30 June.

In April 2017, Bokittys Sdn Bhd absorbed Duckoo Sdn Bhd where the company decided to reshuffle their accounting date to 30 September for the conformance of merging company’s accounting date.

The adjusted income/(loss) for the respective accounting periods are as follows:

Instruction:
Determine the basis period and compute the adjusted income/(loss) of Bokittys Sdn Bhd for all the relevant years of assessment.

PART B
Corptown Galleria Sdn Bhd provided the following information regarding its residential properties for the year ended 31 December 2019:

Apartment was acquired in December 2018 and was first rented out on 1 February 2019.

Instruction:
Based on the above information, calculate the aggregate income of Corp town Galleria Sdn Bhd for the YA 2019.

PART C
Harun is a part-time writer where he writes article in Malaysian magazines, newspapers and books. During year 2019, Harun involved in translation of literary work requested by Ministry of Education. He also involved in writing film’s subtitle from english to malay.

Income from royalties and expenditure for the year ended 31 December 2019 for Harun are as follows:

Requirement:
Compute Harun’s adjusted income from royalties for the YA 2019.

DTX5014 Taxation Assignment-Multimedia University Malaysia.

QUESTION 3
Ah Ngah, 46 years old was employed as an engineer at Sembi Bhd, a car manufacturing factory, fifteen years ago. Since Ah Ngah showed his loyalty towards company, he received the following income for the year ended 31 December 2019:

To guarding virtue of employees, keep their loyalty as well as good performance, Sembi Bhd provided the following to Ah Ngah for the whole year, unless stated otherwise:

1.Accommodation in fully furnished house at a monthly rental of RM8,600 (inclusive of rental of furniture and household appliances of RM1,200).

2.A company car (which cost RM125,000 six years ago) with an employed driver by Sembi Bhd at a salary of RM1,000 monthly where the petrol is also provided.

3. Hand phone and bills amounted to RM1,200.

4.School fees total of RM48,000 for his children studied at University Utara Malaysia.

5.Salary of a servant who has been employed by the company at RM800 per month from 1 April 2019.

6.The company reimbursed Ah Ngah with a quarter year salary for the gardener employed by him at the rate of RM 500 per month. However, with effect from 1 April 2019 the company decided to employed the gardener and provided the gardener to Ah Ngah for free.

7. Sembi Bhd provide 20% discount in respect of any car purchased from the company as staff price.

8.Two overseas holiday packages costing RM2,200 and RM3,000 respectively and four local leave passages to:

9.Entrance fee of RM 18,000 and monthly subscriptions of RM180 for a non-corporate golf club membership.

10.Broadband subscription fee amounted to RM 600.

11.Medical, dental treatment and child care benefit provided for RM10,000 annually.

Additional information:
Ah Ngah made the following claims:
1.A total of RM 15,500 for entertainment expenses due to entertaining company’s clients.

2.Amount of RM7,430 incurred on travelling for official duties.

Instruction:
Compute the statutory employment income of Ah Ngah for the YA2019.

QUESTION 4
Abu and Jemah is newly married couple at the end of December 2018. Both of them are Malaysian resident where they live together in Kuala Lumpur.

Both Abu and Jemah declared their income for the year ended 31 December 2019 and following are information related to their income, benefits and expenditure for the period ended 31 December 2019:

Additional information:
1.Car benefit and domestic servant are provided by employer from 1 August 2019.
2. Abu received total interest of RM4,330 for the year of assessment 2019 which was made up of interest on fixed deposit of RM620 from Tiger Bank, Malaysia and interest of RM3,710 from a loan to his brother in law for the year of assessment 2019.
3. Jemah had a shawl booth which only opened during weekend. However, for the year 2019, she incurred a loss of RM7,300.

Instruction:
Compute the chargeable income and the tax payable separately by Abu and Jemah for the year of assessment 2019.

DTX5014 Taxation Assignment-Multimedia University Malaysia.