Pre-challenge - Deloitte Tax Challenge 2019

20 Questions | Total Attempts: 1343

SettingsSettingsSettings
Please wait...
Pre-challenge - Deloitte Tax Challenge 2019


Questions and Answers
  • 1. 
    Which of the following statements in relation to the features of the Malaysian tax system is true?
    • A. 

      An individual carrying on a business must submit a tax estimate at least 30 days prior to the commencement of the basis period for the respective year of assessment

    • B. 

      A non-resident employee, with the same employer for 12 months, may elect not to submit a tax return provided their remuneration was subject to a monthly tax deduction and they did not have any income other than from employment

    • C. 

      An individual carrying on a business, with an instalment scheme issued by the Inland Revenue Board, will be allowed to revise a tax estimate for a year of assessment only in the sixth and ninth month of the basis year

    • D. 

      Citizens of a foreign country who derive employment income from Malaysia are not required to declare their Malaysian source income

  • 2. 
    XYZ Sdn Bhd (XSB) made the following payments in the financial year ended 31 October 2018: (A) Payments to Qatar Corporation (non-resident) : Fee for maintenance services on a machine in XSB factory premises in Malaysia - RM100,000 Out of pocket expenses – taxi fares during the visit - RM1,000 (B) Payments to Movers Sdn Bhd (resident) Crane rental fee - RM35,000 Movers Sdn Bhd had rented the crane from Thai Ltd, a non-resident company. What is the total amount of withholding tax levied on the payments made by XYZ Sdn Bhd in the financial year ended 31 October 2018?
    • A. 

      RM10,000

    • B. 

      RM3,500

    • C. 

      RM10,100

    • D. 

      RM13,600

  • 3. 
    James, a British citizen, arrived in Malaysia on 1 August 2017 to commence employment. He was physically present in Malaysia until he left permanently on 10 July 2018, with the exception of 20 days in February 2018, when he was in Singapore meeting with his employer’s clients. In which year(s) of assessment is James a tax resident in Malaysia?
    • A. 

      2017 only

    • B. 

      2018 only

    • C. 

      2017 and 2018

    • D. 

      Not a tax resident in either year

  • 4. 
    Which of the following statements relating to real property gains tax (RPGT) is true?
    • A. 

      Residential properties in Malaysia do not fall within the scope of RPGT

    • B. 

      The disposal of a property in Malaysia is not subject to RPGT if rental income derived from the property has previously been assessed to income tax

    • C. 

      Both RPGT and income tax may apply at the same time on a gain arising from the disposal of a property in Malaysia

    • D. 

      The disposal of a property located outside Malaysia, by a Malaysian citizen, is not subject to RPGT

  • 5. 
    Candy, a Singaporean citizen, is resident in Malaysia for the year of assessment 2018. She is a renowned composer and has also published literary books on the history of musical instruments. She derived the following royalties from Malaysia in the year of assessment 2018:-   Royalty from musical composition - RM24,000 Royalty from published literary book - RM26,000 What is Candy’s statutory income from royalties for the year of assessment 2018?
    • A. 

      RM50,000

    • B. 

      RM10,000

    • C. 

      RM30,000

    • D. 

      RM20,000

  • 6. 
    Karim derives income from both employment and the rental of investment properties. The following information is available for the year of assessment 2018:   Salary from employment - RM48,000 Employment allowance for work-related travels - RM5,600 Work-related travel expenses - RM4,000 Rental receipts for letting of an apartment - RM6,000 Quit rent and assessment for the apartment - RM8,000 Rental receipts for letting of commercial unit - RM12,000 Quit rent, assessment and repairs for commercial unit - RM5,000 What is Karim’s total income for the year of assessment 2018?
    • A. 

      RM53,000

    • B. 

      RM55,000

    • C. 

      RM54,600

    • D. 

      RM56,600

  • 7. 
    ABC Sdn Bhd was incorporated with a share capital of RM5 million. It commenced trading on 1 November 2016 and closed its first set of accounts on 31 January 2018. What is ABC Sdn Bhd’s first year of assessment, first basis period and the due date of the tax estimate for this basis period?
    • A. 

      2018; 1 November 2016 – 31 January 2018; Within six months of commencement to trade

    • B. 

      2017; 1 November 2016 – 31 October 2017; Within six months of commencement to trade

    • C. 

      2018; 1 November 2016 – 31 January 2018; Within three months of commencement to trade

    • D. 

      2017; 1 November 2016 – 31 December 2017; Within three months of commencement to trade

  • 8. 
    Ace Sdn Bhd owns the following buildings: (1) Building used to store finished goods within the same curtilage as the factory which produces the finished goods (2) Building used to store raw materials within the same curtilage as the factory which uses the raw material (3) Building used to store imported products which are to be processed and distributed Which of the buildings qualify for industrial building allowance?
    • A. 

      1 only

    • B. 

      2 and 3 only

    • C. 

      1 and 2 only

    • D. 

      1, 2 and 3

  • 9. 
    A non-resident company with paid-up share capital equivalent to RM1 million has a branch in Malaysia. The branch has chargeable income of RM550,000 for the financial year ended 31 July 2018. What amount of income tax is payable by the company in Malaysia for the year of assessment 2018?
    • A. 

      RM132,000

    • B. 

      RM99,000

    • C. 

      RM102,000

    • D. 

      RM107,000

  • 10. 
    Which of the following factors are taken into account by an employer in determining the amount of monthly tax deduction from an employee’s remuneration? (1) The tax residence status of the employee (2) The spouse’s tax residence status (3) Number of children
    • A. 

      1 only

    • B. 

      2 and 3 only

    • C. 

      1 and 3 only

    • D. 

      1, 2 and 3

  • 11. 
    Albert and his wife, Catherine, sold a jointly owned Malaysian property on 30 June 2018 for RM3 million. They had each purchased 50% of the property four and a half years previously for a total of RM2 million. Albert and Catherine are both Malaysian citizens. What is the total real property gains tax (RPGT) payable in respect of the disposal on 30 June 2018 by Albert and Catherine?
    • A. 

      RM135,000

    • B. 

      RM217,500

    • C. 

      RM300,000

    • D. 

      RM225,000

  • 12. 
    Which of the following statements correctly describes a type of indirect taxation? (1) Taxes remitted to the Government by an employer in respect of the remuneration of its employees (2) Taxes charged by businesses on the supplies which it makes to consumers and other businesses (3) Withholding taxes remitted to the Government in respect of payments to non-residents for royalties (4) Duties and taxes payable by an importer at the time of importation of goods
    • A. 

      2 only

    • B. 

      4 only

    • C. 

      1 and 3

    • D. 

      2 and 4

  • 13. 
    Which statement is incorrect with regard to the banking business under the Income Tax Act, 1967?
    • A. 

      Statutory income for a year of assessment shall be ascertained by reference to income wherever accruing or derived

    • B. 

      Statutory income attributable to an offshore business activity of a licensed Malaysian offshore bank is excluded from the Income Tax Act, 1967

    • C. 

      Statutory income of a Malaysian Branch of a non-resident bank will include all income wherever accruing or derived

    • D. 

      None of the above

  • 14. 
    Incentive is given to a company which is in the business of providing private healthcare services in a new private healthcare facility. Which of the following statements is correct?
    • A. 

      The project must be approved by the Minister of Health

    • B. 

      The project must be registered with the Malaysia Healthcare Travel Council

    • C. 

      At least 5% of the number of patients is a health traveller

    • D. 

      All of the above

  • 15. 
    Which of the following building is not considered an industrial building?
    • A. 

      A used building purchased in Cyberjaya and rented to an approved MSC status company

    • B. 

      A used building purchased and used as an old folks care centre approved by the Department of Social Welfare

    • C. 

      A used building purchased and used as a kindergarten which is approved by the Ministry of Education

    • D. 

      None of the above

  • 16. 
    Which statement regarding a deceased individual and his estate is correct?
    • A. 

      Annuity payable by an executor is deductible against total income

    • B. 

      The annuity is deemed derived from Malaysia

    • C. 

      If the individual died while residing in Malaysia or outside Malaysia, the estate can get a deduction of RM9,000 against its total income

    • D. 

      None of the above

  • 17. 
    The price of an article was cut 20% for sale.  By what percentage must the discounted item be increased to again sell the article at the original price?
    • A. 

      15%

    • B. 

      20%

    • C. 

      25%

    • D. 

      30%

  • 18. 
    What is the antonym of "Provocation" ?
    • A. 

      Vocation

    • B. 

      Pacification

    • C. 

      Peace

    • D. 

      Destruction

  • 19. 
    A is 5 year younger than B who is 3 times as old as C. If C was 10 years old 4 years back. How old will A be after 6 years?The total journey is ?
    • A. 

      35

    • B. 

      43

    • C. 

      40

    • D. 

      30

  • 20. 
    15 men take 21 days of 8 hours each to do a piece of work. How many days of 6 hours each would 21 women take, if 3 women do as much work as 2 men ?
    • A. 

      20

    • B. 

      18

    • C. 

      25

    • D. 

      30

Back to Top Back to top