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Eco-Land Sdn Bhd acquired a shop lot for investment and letting purposes.
Under which of the following scenarios will the rental income be assessed as a business source of income?
D. Eco-land Sdn Bhd actively provides comprehensive maintenance or support/ancillary services
If Eco-Land Sdn Bhd actively provides comprehensive maintenance or support/ancillary services for the shop lot, the rental income will be assessed as a business source of income. This is because actively providing these services indicates that Eco-Land Sdn Bhd is not just passively collecting rent, but actively involved in the management and operation of the property. This level of involvement and additional services provided elevate the rental activity to a business activity.
Nik exercised employment in Malaysia.
He received interest income on 1 March 2017 from fixed deposits which were placed with a local bank. Nik also received dividends from a company listed on the Hong Kong Stock Exchange and insurance proceeds from an endowment policy.
In relation to Nik’s liability to Malaysian income tax, which of the following statements is/are correct?
(1) The employment income is subject to income tax
(2) The interest income derived from fixed deposits with a local bank is subject to income tax
(3) The dividend income received from the Hong Kong listed company is tax exempt
(4) The insurance proceeds received from the endowment policy are tax exempt
C. 1, 3 and 4 only
The correct answer is 1, 3 and 4 only.
(1) The employment income is subject to income tax because Nik exercised employment in Malaysia.
(2) The interest income derived from fixed deposits with a local bank is subject to income tax as it is considered as taxable income.
(3) The dividend income received from the Hong Kong listed company is tax exempt because Malaysia has a tax exemption for dividends received from foreign companies listed on approved stock exchanges.
(4) The insurance proceeds received from the endowment policy are tax exempt as insurance proceeds are generally not subject to income tax in Malaysia.
TSG Sdn Bhd made the following payments on 10 January 2017:
1) Interest of RM10,000 to its parent company in Canada
2) Royalty of RM20,000 to an overseas franchise holder
3) Purchase of equipment for RM30,000 from a supplier in Canada
4) Rental of crane for RM40,000 from a local supplier in Malaysia
Which of the following payment is subjected to withholding tax?
A. 1 and 2
Payments 1 and 2 are subjected to withholding tax because they involve payments to overseas entities. Withholding tax is a tax deducted at source by the payer of the income and is usually applicable to payments made to non-residents or foreign entities. In this case, TSG Sdn Bhd is making payments to its parent company in Canada and an overseas franchise holder, both of which are considered non-residents. Therefore, withholding tax would be applicable to these payments. Payments 3 and 4, on the other hand, do not involve overseas entities and would not be subjected to withholding tax.
Fajar Sdn Bhd, a manufacturing company with an issued share capital of RM20 million, owned an acre of land which it acquired for RM1,000,000 in 2014.
The government compulsorily acquired the land and paid Fajar Sdn Bhd compensation of RM1,200,000 under a sale and purchase agreement.
What is the real property gains tax (RPGT) implication of the above transaction for Fajar Sdn Bhd?
D. Fajar Sdn Bhd will not be subject to RPGT as the compulsory acquisition by the government will be treated as a no-gain no-loss transaction but it must still submit a RPGT return to the IRB
In this scenario, Fajar Sdn Bhd will not be subject to Real Property Gains Tax (RPGT) because the compulsory acquisition of the land by the government will be treated as a no-gain no-loss transaction. However, Fajar Sdn Bhd is still required to submit an RPGT return to the Inland Revenue Board (IRB). This means that although there is no tax liability, the company still needs to report the transaction to the tax authorities.
Which of the following factor(s) supports the view that there is a contract of service (i.e. an employment relationship exists) and not a contract for services?
(1) Employees’ provident fund (EPF) deductions are made from the payments made to the individual
(2) The individual is expected to use their own laptop and stationery in performing the work
(3) The individual has to work from 9 am to 5 pm every working day
(4) The individual does not have the flexibility to contract another person to perform the work
D. 1, 3 and 4
The factors that support the view that there is a contract of service (i.e. an employment relationship exists) and not a contract for services are as follows:
(1) Employees' provident fund (EPF) deductions are made from the payments made to the individual. This indicates that the individual is being treated as an employee and not as a contractor.
(3) The individual has to work from 9 am to 5 pm every working day. This suggests that the individual is subject to the control and direction of the employer, which is a characteristic of an employment relationship.
(4) The individual does not have the flexibility to contract another person to perform the work. This shows that the individual is not operating as an independent contractor and is dependent on the employer for the work.
LMN Sdn Bhd (LMN) is a company with a financial year end of 30 September. LMN submitted its tax estimate for the year of assessment 2016 by the due date but would now like to revise the estimate. During which months may LMN Sdn Bhd revise its tax estimate for the year of assessment 2016?
C. March 2016 and/or June 2016
LMN Sdn Bhd can revise its tax estimate for the year of assessment 2016 in March 2016 and/or June 2016. This means that during these months, the company can update and make changes to its initial tax estimate that was submitted by the due date.
Which of the following fall within the meaning of ‘land’ for the purposes of the Real Property Gains Tax Act 1976?
(1) Buildings and anything attached to land
(2) Earth below the surface and the substances therein
(3) The substances forming the surface of the earth
(4) Standing timber, trees and crops growing on land
D. All of the above
The meaning of 'land' for the purposes of the Real Property Gains Tax Act 1976 includes buildings and anything attached to land (1), the earth below the surface and the substances therein (2), and the substances forming the surface of the earth (3). Additionally, standing timber, trees, and crops growing on land (4) are also included in the meaning of 'land' for the Act. Therefore, all of the options provided in the answer are correct.
We will have some important visitors here tomorrow for the proposal meeting. _________________________.
B. I'd appreciate it if you could dress professionally
The correct answer is "I'd appreciate it if you could dress professionally." This is the most polite and appropriate way to make a request. Using "could" instead of "can" shows a higher level of politeness and is more likely to elicit a positive response.
Which income from employment is not exempted?
C. Employment as a cook in May to June 2018 on board a foreign ship leased by ABC Sdn Bhd
The income from employment as a cook in May to June 2018 on board a foreign ship leased by ABC Sdn Bhd is not exempted.
What is the missing number in the sequence shown below? 1 - 8 - 27 - ? - 125 - 216
The sequence is formed by taking the cubes of consecutive numbers. The first number is 1^3 = 1, the second number is 2^3 = 8, the third number is 3^3 = 27, the fourth number is 4^3 = 64, the fifth number is 5^3 = 125, and the sixth number is 6^3 = 216. Therefore, the missing number in the sequence is 64.