Stage 1 (Individual) Deloitte Tax Challenge 2019

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  • 1/123 Questions

    Which of the following can be arranged into a 5-letter English word?

    • H R G S T
    • R I L S A
    • T O O Q T
    • W Q R G S
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About This Quiz

This quiz from the Stage 1 (Individual) Deloitte Tax Challenge 2019 assesses knowledge of Malaysian tax law, focusing on income definitions, tax deductions, and rebates. It is designed for individuals preparing for tax-related roles, enhancing understanding of complex tax regulations.

Stage 1 (Individual) Deloitte Tax Challenge 2019 - Quiz

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  • 2. 

    What does RMCD stand for?

    • Royal Malaysian Customs Department

    • Royal Malaysian Customs Depot

    • Regulated Malaysian Customs Department

    • Royal Malaysian Central Department

    Correct Answer
    A. Royal Malaysian Customs Department
    Explanation
    RMCD stands for Royal Malaysian Customs Department. This is the correct answer because it accurately represents the acronym and the organization it refers to. The Royal Malaysian Customs Department is a government agency responsible for enforcing customs and trade regulations in Malaysia. They are responsible for collecting customs duties, preventing smuggling, and facilitating international trade.

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  • 3. 

    Which one of the five choices makes the best comparison? PEACH is to HCAEP as 46251 is to:

    • 25641

    • 26451

    • 12654

    • 51462

    • 15264

    Correct Answer
    A. 15264
    Explanation
    The correct answer is 15264. In the given comparison, the word PEACH is spelled backwards as HCAEP. Similarly, the number 46251 should be spelled backwards to find the corresponding number. Out of the given choices, only 15264 is the reverse of 46251, making it the best comparison.

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  • 4. 

    (68+42) x ? = 308/5 Complete the equation by correctly identifying the missing part of the calculation from the below.

    • 48%

    • 56%

    • 58%

    • 60%

    • 62%

    Correct Answer
    A. 56%
    Explanation
    In order to find the missing part of the calculation, we need to solve the equation (68+42) x ? = 308/5. Simplifying the equation, we have 110 x ? = 61.6. Dividing both sides by 110, we get ? = 61.6/110. Evaluating this expression, we find that ? is approximately equal to 0.56, which is equivalent to 56%. Therefore, the missing part of the calculation is 56%.

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  • 5. 

    If you rearrange the letters "CIFAIPC" you would have the name of a(n):

    • City

    • Animal

    • Ocean

    • River

    • Country

    Correct Answer
    A. Ocean
    Explanation
    By rearranging the letters "CIFAIPC," we can form the word "PACIFIC." The Pacific Ocean is the largest and deepest ocean on Earth, covering more than 30% of the planet's surface. It is known for its vastness and diverse marine life, making it a suitable answer for this question.

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  • 6. 

    Which of the following would not fall under the definition of an asset?

    • Intellectual property rights

    • Land

    • Cash

    • Owner's equity

    Correct Answer
    A. Owner's equity
    Explanation
    Owner's equity would not fall under the definition of an asset because it represents the residual interest in the assets of an entity after deducting liabilities. It is the owner's claim on the assets of the business and is classified as part of the liabilities and equity section of the balance sheet, rather than being considered an asset itself. Assets, on the other hand, are economic resources that are owned or controlled by an entity, with the expectation that they will provide future economic benefits.

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  • 7. 

    Knowing people is important. _________________________________________________________.

    • The best connections you have, the more successful you will be

    • The better connections you have, the more successful you will be

    • The better connections you have, the more successfully you will be

    • The better connections have you, the more successful you will be

    Correct Answer
    A. The better connections you have, the more successful you will be
    Explanation
    Having a strong network of connections is crucial for success. The more connections you have, the greater your chances of achieving success. These connections can provide opportunities, support, and valuable advice that can help you progress in your personal and professional life. By building and nurturing relationships with a diverse range of people, you increase your access to resources, knowledge, and opportunities that can contribute to your success.

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  • 8. 

    An amount of 3,000 is received on account from a customer in relation to a balance outstanding for services provided. Which account is credited?

    • Accounts receivable

    • Cash

    • Services

    Correct Answer
    A. Accounts receivable
    Explanation
    When a customer pays an outstanding balance for services provided, the amount received is credited to the "Accounts receivable" account. This account represents the amount owed to the company by its customers. By crediting the "Accounts receivable" account, it reduces the outstanding balance and reflects the fact that the customer has made a payment towards their debt.

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  • 9. 

    _________________________________________________________. He was expecting my call — I told him I would call right after lunch.

    • I needed to call my client but I forgot

    • I had to call my client but I forgot

    • I must have called my client but I forgot

    • I was supposed to call my client but I forgot

    Correct Answer
    A. I was supposed to call my client but I forgot
    Explanation
    The correct answer is "I was supposed to call my client but I forgot." This answer accurately reflects the situation described in the given statement. The speaker had a responsibility or obligation to call their client, but they forgot to do so.

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  • 10. 

    What is 17/68 of 12.5% of 19/57 of 30/45 of 144?

    • 12

    • 4

    • 1

    • 7.5

    Correct Answer
    A. 1
    Explanation
    The question is asking for 17/68 of 12.5% of 19/57 of 30/45 of 144. To solve this, we can start by finding the value of 30/45 of 144, which is 96. Then, we can find 19/57 of 96, which is 32. Finally, we can find 12.5% of 32, which is 4. So, 17/68 of 4 is 1. Hence, the answer is 1.

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  • 11. 

    Which of the following rates are applicable to agriculture allowance in respect of different assets? I. 100% II. 50% III. 20% IV. 10%

    • I and II

    • I, II and III

    • II, III and IV

    • All of the above

    Correct Answer
    A. II, III and IV
    Explanation
    The rates applicable to agriculture allowance in respect of different assets are 50%, 20%, and 10%. This means that for certain agricultural assets, a deduction of 50%, 20%, or 10% can be claimed as an allowance. The answer "II, III and IV" indicates that all these rates are applicable to agriculture allowance.

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  • 12. 

    What is the missing number in the sequence shown below? 1 - 8 - 27 - ? - 125 - 216

    • 36

    • 45

    • 46

    • 64

    • 99

    Correct Answer
    A. 64
    Explanation
    The sequence shown is a pattern of cubes of consecutive numbers. 1^3 = 1, 2^3 = 8, 3^3 = 27, 4^3 = 64, 5^3 = 125, 6^3 = 216. Therefore, the missing number in the sequence is 64.

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  • 13. 

    If you rearrange the letters "LNGEDNA" you have the name of a(n):

    • Animal

    • Country

    • State

    • City

    • Ocean

    Correct Answer
    A. Country
    Explanation
    By rearranging the letters "LNGEDNA," we can form the word "ENGLAND," which is the name of a country.

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  • 14. 

    Your presentation should include visual aids, ______________________________________.

    • For example pictures, tables, and graphs

    • As pictures, tables, and graphs

    • Such as pictures, tables, and graphs

    • For instance pictures, tables, and graphs

    Correct Answer
    A. Such as pictures, tables, and graphs
    Explanation
    The correct answer is "such as pictures, tables, and graphs". This answer suggests that visual aids such as pictures, tables, and graphs should be included in the presentation. These visual aids can help to enhance the understanding and engagement of the audience by providing visual representations of data, concepts, or ideas. They can make the presentation more visually appealing and can also help to simplify complex information. Including visual aids can make the presentation more effective and memorable for the audience.

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  • 15. 

    Out of 384 guests at a conference, a quarter took their coffee with sugar only, 5/8 took it with both milk and sugar, one out of every 16 guests took it with milk only and the rest took it black with neither milk nor sugar. How many guests took it black with neither milk nor sugar?

    • 16

    • 18

    • 12

    • 24

    Correct Answer
    A. 24
    Explanation
    We can solve this problem by setting up a system of equations. Let's assume that there are x guests who took their coffee with sugar only, y guests who took it with both milk and sugar, z guests who took it with milk only, and w guests who took it black with neither milk nor sugar.

    According to the given information, we can set up the following equations:
    x + y + z + w = 384 (total number of guests)
    x = 1/4 * 384 (a quarter took it with sugar only)
    y = 5/8 * 384 (5/8 took it with both milk and sugar)
    z = 1/16 * 384 (one out of every 16 guests took it with milk only)

    Simplifying these equations, we find:
    x = 96
    y = 240
    z = 24

    To find the number of guests who took it black with neither milk nor sugar, we can substitute the values of x, y, and z into the first equation:
    96 + 240 + 24 + w = 384
    360 + w = 384
    w = 24

    Therefore, 24 guests took it black with neither milk nor sugar.

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  • 16. 

    The acquirer must submit Form CKHT 2A within ……… days from the date of acquisition of the property.

    • 21

    • 30

    • 50

    • 60

    Correct Answer
    A. 60
    Explanation
    The correct answer is 60. This means that the acquirer must submit Form CKHT 2A within 60 days from the date of acquisition of the property. This form is likely a requirement for the acquirer to report the acquisition and provide necessary information to the relevant authorities. The 60-day timeframe allows for a reasonable amount of time for the acquirer to gather the required information and complete the form.

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  • 17. 

    Mary, who is sixteen years old, is four times as old as her brother. How old will Mary be when she is twice as old as her brother?

    • 20

    • 24

    • 25

    • 26

    • 28

    Correct Answer
    A. 24
    Explanation
    Mary is currently 16 years old and four times as old as her brother. This means her brother is 16/4 = 4 years old. In order for Mary to be twice as old as her brother, her brother would have to be 4 x 2 = 8 years old. Since Mary is currently 16 years old, she would be 16 + 8 = 24 years old when she is twice as old as her brother. Therefore, the answer is 24.

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  • 18. 

    Any unabsorbed capital allowance may be carried forward to be set off against (Note: there is no substantial change in shareholding)

    • Income of the following years from non-business source

    • Income of the following years from the same business source

    • Income of the following years from all business sources

    • Unabsorbed capital allowance cannot be carried forward

    Correct Answer
    A. Income of the following years from the same business source
    Explanation
    Any unabsorbed capital allowance refers to the amount of capital allowance that has not been fully utilized in a particular tax year. This unutilized amount can be carried forward to be set off against the income of the following years from the same business source. This means that if a business has not fully utilized its capital allowance in a given year, it can offset this unused amount against its future income from the same business source. This allows businesses to effectively utilize their capital allowances over multiple years and reduce their tax liability.

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  • 19. 

    What is the missing term in the break even formula below? Break even units = Operating expenses / (Selling price – ?)

    • Cost

    • Cost per unit

    • Gross margin

    • Revenue

    Correct Answer
    A. Cost per unit
    Explanation
    The missing term in the break even formula is "Cost per unit". In order to calculate the break even units, we need to divide the operating expenses by the difference between the selling price and the cost per unit. This formula helps determine the number of units that need to be sold in order to cover all the operating expenses and reach the break even point.

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  • 20. 

    Which of the following will be subject to withholding tax?

    • Consultancy fee paid to a non-resident company for services rendered in Germany

    • Commission fee paid to a non-resident company which is in the business of commission agency

    • Appearance fee paid to the famous movie star, Jackie Chan for a show in Malaysia

    • Technical seminar fee paid to a non-resident organizer for seminar held at London

    Correct Answer
    A. Appearance fee paid to the famous movie star, Jackie Chan for a show in Malaysia
    Explanation
    The appearance fee paid to Jackie Chan for a show in Malaysia will be subject to withholding tax. Withholding tax is a tax that is deducted at the source of income, usually by the payer of the income. In this case, the fee paid to Jackie Chan is considered income and will be subject to withholding tax in Malaysia. The other options mentioned (consultancy fee, commission fee, technical seminar fee) may also be subject to withholding tax depending on the specific tax laws in the respective countries, but the question specifically asks for the fee that will be subject to withholding tax.

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  • 21. 

    After submitting her 2017 return form before the due date 30 June 2018, Ms Tan submitted an amended tax return for the year of assessment 2017 on 10 August 2018 which resulted in an additional tax payable of RM500. What would be the amount payable inclusive of penalties, if any?

    • RM500.00

    • RM550.00

    • RM575.00

    • RM577.50

    Correct Answer
    A. RM550.00
    Explanation
    Ms Tan submitted an amended tax return after the due date, which means she is liable to pay penalties. The penalties for late submission of an amended tax return in Malaysia are as follows: 5% of the additional tax payable if the amended return is submitted within 60 days from the due date, and 10% if it is submitted after 60 days. Since Ms Tan submitted the amended return on 10 August 2018, which is more than 60 days after the due date, the penalty would be 10% of the additional tax payable. Therefore, the total amount payable, inclusive of penalties, would be RM500 + 10% of RM500, which equals RM550.00.

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  • 22. 

    A business has the following items:-
    • Land : RM 1,500,0000
    • Machinery : RM 80,000
    • Cash : RM 20,000
    • Owner's equity : RM 900,000
    • Loan : RM 500,000
    What is the value of creditors?

    • RM 200,000

    • RM 700,000

    • RM 800,000

    • RM 1,100,000

    Correct Answer
    A. RM 200,000
    Explanation
    The value of creditors is RM 200,000. This is because creditors represent the amount of money that a business owes to its suppliers or lenders. In this case, the business has a loan of RM 500,000, which is the only liability mentioned. Therefore, the value of creditors is equal to the loan amount, which is RM 200,000.

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  • 23. 

    In the two numerical sequences below, one number that appears in the top sequence should appear in the bottom sequence and vice versa. Which two numbers should be changed around?  
    • 10, 20, 60, 180, 360, 720
    • 10, 30, 60, 120, 360, 1080

    • 20, 30

    • 120, 180

    • 720, 1080

    Correct Answer
    A. 120, 180
    Explanation
    In the given sequences, all the numbers are multiples of 10. However, in the second sequence, the number 120 should be changed to 180 and vice versa. This is because in the first sequence, the numbers are increasing by multiplying by 3, while in the second sequence, the numbers are increasing by multiplying by 2. So, to maintain the pattern, the numbers 120 and 180 need to be swapped.

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  • 24. 

    Which of the following statements are false?

    • A liability is a debt for your business.

    • Debtors are a debt for your business.

    • The accounting equation shows how much of your assets belong to the owner, and how much ‘belong’ to people outside the business.

    • If you cannot work out a value for an item that will bring you future benefits, then you cannot keep this as an asset in your records.

    • None of the above

    Correct Answer
    A. Debtors are a debt for your business.
    Explanation
    Debtors are not a debt for your business. Debtors refer to individuals or entities who owe money to your business as a result of purchasing goods or services on credit. They represent an asset for your business as they are expected to pay their debts in the future, which increases the business's accounts receivable.

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  • 25. 

    Optimal Sdn Bhd is planning to make payment in respect of services rendered by a non-resident. When should Malaysian withholding tax payment be made?

    • Within 1 month when Optimal Sdn Bhd enters the payment in its accounts

    • Within 1 month before the commencement of its new financial year

    • Within 1 month after the close of its financial year end

    • Within 1 month when Optimal Sdn Bhd electronically transfers the payment to the non-resident

    Correct Answer
    A. Within 1 month when Optimal Sdn Bhd electronically transfers the payment to the non-resident
    Explanation
    The correct answer is "Within 1 month when Optimal Sdn Bhd electronically transfers the payment to the non-resident." This is because Malaysian withholding tax payment should be made within 1 month of transferring the payment to the non-resident. This ensures that the tax is withheld and paid to the relevant authorities in a timely manner.

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  • 26. 

    In a transfer pricing comparability analysis, which companies with principal activities below would be comparable to a manufacturer of garments? I. Manufacturer of swimsuit II. Manufacturer of sports equipment III. Manufacturer of apparel IV. Manufacturer of jeans

    • I and II

    • I and IV

    • I, III and IV

    • III only

    Correct Answer
    A. I, III and IV
    Explanation
    Companies that are comparable to a manufacturer of garments would be those involved in the manufacturing of similar products or products within the same industry. Swimsuits, apparel, and jeans are all garments, so a manufacturer of swimsuits (I), a manufacturer of apparel (III), and a manufacturer of jeans (IV) would be comparable to a manufacturer of garments. Therefore, the correct answer is I, III, and IV.

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  • 27. 

    The incorrect tax treatment for purchase of assets under a hire-purchase transaction is

    • To claim capital allowance on principal payments made during the year

    • To claim capital allowance on principal and interest payments made during the year

    • To expense off the interest payments

    • None of the above

    Correct Answer
    A. To claim capital allowance on principal and interest payments made during the year
    Explanation
    The correct answer is to claim capital allowance on principal and interest payments made during the year. In a hire-purchase transaction, the ownership of the asset is transferred to the purchaser only after the final payment is made. Until then, the purchaser is considered as the hirer. Therefore, the correct tax treatment is to claim capital allowance on the principal payments made during the year, as the hirer is not the legal owner of the asset. Additionally, the interest payments should be expensed off, as they are considered as financing costs rather than capital expenditure.

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  • 28. 

    C Manufacturers Sdn Bhd commenced its business in 2001. In year 2003, the company first undertook its expansion project. Based on the current legislation, what is the final year which C Manufacturers Sdn Bhd is entitled for the claim of Reinvestment Allowance?

    • YA 2017

    • YA 2018

    • YA 2019

    • YA 2020

    Correct Answer
    A. YA 2018
    Explanation
    Based on the information provided, C Manufacturers Sdn Bhd commenced its business in 2001 and undertook its expansion project in 2003. The claim for Reinvestment Allowance is usually available for a certain period of time after the expansion project. Since the question does not specify the duration of the claim period, we can assume it is the standard 5-year period. Therefore, the final year for which C Manufacturers Sdn Bhd is entitled to claim the Reinvestment Allowance would be 2018, as it is five years after the expansion project in 2003.

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  • 29. 

    Solar Power Sdn Bhd would like to embark into the business of producing solar energy in Sarawak and would incur huge investment to purchase solar PV system. Which government agency should Solar Power Sdn Bhd approach to apply for the investment tax allowance incentive?

    • Malaysian Investment Development Authority (MIDA)

    • Sustainable Energy Development Authority Malaysia (SEDA)

    • Ministry of Energy, Green Technology and Water

    • Sarawak Corridor of Renewable Energy (SCORE)

    Correct Answer
    A. Malaysian Investment Development Authority (MIDA)
    Explanation
    Solar Power Sdn Bhd should approach the Malaysian Investment Development Authority (MIDA) to apply for the investment tax allowance incentive. MIDA is the government agency responsible for promoting and facilitating investments in Malaysia. They provide various incentives and support for businesses, including tax incentives for investment in certain sectors, such as renewable energy. Since Solar Power Sdn Bhd wants to invest in producing solar energy, they would be eligible to apply for the investment tax allowance incentive offered by MIDA.

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  • 30. 

    Which of the following entertainment expenses qualify for 50% tax deduction? I. Redemption of gifts based on a scheme of accumulated points II. Expenditure on leave passage benefit provided by an employer to its employees to Pulau Pangkor as its yearly event III. A dinner provided to an important supplier IV. Entertainment given to internal auditors from holding company

    • I and II

    • I, II and IV

    • III

    • III and IV

    Correct Answer
    A. III
  • 31. 

    Sofmicro Inc. incorporated in the United States of America is a company that has been providing technical services to its subsidiaries in Malaysia. Its employees would frequently travel to Malaysia to provide onsite support. Which of the following would apply to Sofmicro, Inc? I. Sofmicro Inc. has established a taxable presence in Malaysia. As such, it would be liable to Malaysian corporate tax II. Sofmicro Inc. would be required to withhold 10% of payments made to its customers III. Sofmicro Inc. employees will be subject to Malaysian tax in respect of their income earned in Malaysia IV. Sofmicro Inc. earnings would be subject to a Malaysian withholding tax of 10%

    • I, II and III

    • II, III and IV

    • I, III and IV

    • All of the above

    Correct Answer
    A. I, III and IV
    Explanation
    Sofmicro Inc. would be liable to Malaysian corporate tax because it has established a taxable presence in Malaysia. Additionally, Sofmicro Inc. employees would be subject to Malaysian tax on their income earned in Malaysia. Furthermore, Sofmicro Inc. earnings would be subject to a Malaysian withholding tax of 10%. Therefore, the correct answer is I, III, and IV.

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  • 32. 

    Bee Sdn Bhd has made a royalty payment to a Japanese company on 20 March 2018 in respect of royalty for the month of February 2018 charged in invoice dated 10 March 2018. When was the withholding tax due to be paid to the IRB on the above royalty payment?

    • One month from 20 March 2018

    • One month from 10 March 2018

    • One month from 28 February 2018

    • 20 March 2018

    Correct Answer
    A. One month from 20 March 2018
    Explanation
    The withholding tax on the royalty payment was due to be paid to the IRB one month from 20 March 2018 because the payment was made on that date.

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  • 33. 

    Which interest is chargeable to tax as part of a Section 4(a) business income? I. Interest that is charged on a trade debtor for late payment of the debt II. Interest that is paid by an employee on a loan given by the employer III. Interest on a debenture which is held for trading IV. The interest relates to a business of lending money which is licensed

    • I and II

    • II and III

    • III and IV

    • All of the above

    Correct Answer
    A. III and IV
    Explanation
    Interest on a debenture held for trading is chargeable to tax as part of a Section 4(a) business income. This is because the debenture is held as part of a trading activity, indicating that it is being actively bought and sold for profit. Additionally, the interest that relates to a business of lending money which is licensed is also chargeable to tax as part of a Section 4(a) business income. This is because the business of lending money is considered a commercial activity, and the interest earned from it is treated as taxable income.

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  • 34. 

    Which of the following tax incentives have been replaced by the new principal hub incentive scheme? I. Regional Distribution Centre II. Multimedia Super Corridor company III. International Procurement Centre IV. Operational Headquarter

    • I, II and III

    • I, III and IV

    • II and III

    • All of the above

    Correct Answer
    A. I, III and IV
    Explanation
    The new principal hub incentive scheme has replaced the Regional Distribution Centre, International Procurement Centre, and Operational Headquarter tax incentives. The Multimedia Super Corridor company tax incentive has not been replaced by the new scheme.

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  • 35. 

    Which of the following entertainment expenses qualify for 100% tax deduction? I. Promotional gift with company logo II. Cost of lunch incurred by a salesman entertaining his customers III. Annual dinner to employees IV. Cash contribution for customer’s annual dinner

    • I and II

    • I and III

    • I, II and III

    • All of the above

    Correct Answer
    A. I and III
    Explanation
    Promotional gifts with company logos can be considered as a marketing expense and are therefore eligible for a 100% tax deduction. Annual dinners for employees can be considered as a business expense to boost employee morale and are also eligible for a 100% tax deduction. However, the cost of lunch incurred by a salesman entertaining his customers and cash contributions for a customer's annual dinner are not eligible for a 100% tax deduction.

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  • 36. 

    Lyn & Sue UK Limited has set up a representative office in Kuala Lumpur. Which of the following activities are not allowed for a representative office?

    • Plan or coordinate business activities with its affiliates and its subsidiaries in the region

    • Import and export of products and leasing warehouse activities

    • Undertake research and project development and identify sources of raw materials, components or other industrial projects

    • Undertake feasibility studies on investment and business opportunities in Malaysia and the region

    Correct Answer
    A. Import and export of products and leasing warehouse activities
    Explanation
    A representative office is typically established to serve as a liaison between the parent company and its affiliates or subsidiaries in a foreign country. Its main purpose is to gather market intelligence, conduct research, and promote the parent company's products or services. Therefore, import and export activities and leasing warehouse activities are not allowed for a representative office as these are operational functions that involve direct business transactions, which are outside the scope of a representative office's responsibilities.

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  • 37. 

    How many birthdays does the average man have?

    • One

    • Every year

    Correct Answer
    A. One
    Explanation
    The average man has one birthday. This is because a birthday refers to the day a person is born, and a person only has one day of birth. However, every year, the person celebrates their birthday, but it is not considered as having multiple birthdays. Therefore, the correct answer is one.

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  • 38. 

    Which of the following costs are included cost of inventory? I. Freight in II. Sales returns III. Production overhead IV. Interest and finance costs

    • I and III only

    • I, II and III

    • II and III

    • All of the above

    Correct Answer
    A. I and III only
    Explanation
    The cost of inventory includes both the cost of transportation (freight in) and the cost of production overhead. Freight in refers to the cost of transporting the inventory to the company's location, which is directly related to the cost of acquiring the inventory. Production overhead includes indirect costs such as rent, utilities, and depreciation, which are incurred during the production process and are allocated to the cost of inventory. Sales returns and interest and finance costs are not directly associated with the cost of inventory and therefore are not included.

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  • 39. 

    In preparing the income tax computation for XYZ Sdn Bhd, the following qualify for tax deduction:- I. Expenses relating to maintenance of shareholders’ register II. Immigration and professional fees in relation to employment pass for employees III. Gift with company's logo for customer's annual dinner IV. Expenditure on renovation to set up a new branch V. Legal fees incurred for recovery of trade debts

    • I, II and IV

    • III and V

    • II, III and V

    • I, II and III

    Correct Answer
    A. II, III and V
    Explanation
    The expenses relating to maintenance of shareholders' register (I) do not qualify for tax deduction as they are not directly related to the business operations or generating income. However, immigration and professional fees in relation to employment pass for employees (II), gift with company's logo for customer's annual dinner (III), and legal fees incurred for recovery of trade debts (V) are all expenses that are necessary for the business operations and can be considered as legitimate deductions for tax purposes. Therefore, the correct answer is II, III and V.

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  • 40. 

    The operating lease payment of a new non-commercial motor vehicle started in January 2018. The cost of the motor vehicle in January 2018 was RM130,000. The total lease payments is RM160,000 over four years. The total lease payments that is deductible shall not exceed

    • RM160,000

    • RM130,000

    • RM100,000

    • RM50,000

    Correct Answer
    A. RM100,000
    Explanation
    The total lease payments that are deductible shall not exceed RM100,000. This is because the cost of the motor vehicle in January 2018 was RM130,000, but the total lease payments over four years is only RM160,000. Therefore, the maximum amount that can be deducted is RM100,000, which is the total lease payments.

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  • 41. 

    The following are qualifying services for purposes of enjoying principal hub tax incentive except for:-

    • Strategic business planning and corporate development

    • Brand management

    • Tax services

    • Sales and marketing

    Correct Answer
    A. Tax services
    Explanation
    Tax services are not considered qualifying services for enjoying the principal hub tax incentive. This means that companies providing tax services do not qualify for any tax incentives or benefits under this program. The other services listed, such as strategic business planning and corporate development, brand management, and sales and marketing, are considered qualifying services and may be eligible for tax incentives.

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  • 42. 

    Jack is taller than Peter, and Bill is shorter than Jack. Which of the following statements would be more accurate?

    • Bill is taller than Peter

    • Peter is taller than Bill

    • Bill is as tall as Peter

    • None of the above

    Correct Answer
    A. None of the above
    Explanation
    Based on the given information, Jack is taller than Peter, and Bill is shorter than Jack. Therefore, it can be concluded that Bill is shorter than Peter. None of the statements provided in the options accurately describe the relationship between Bill and Peter's height.

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  • 43. 

    Which of the following interest expense does not qualify for tax deduction?

    • Interest expense arising from bank loan for purchase of commercial properties for long term investment purposes

    • Interest expense arising from bank overdraft for working capital purposes

    • Interest expense arising from bank loan for purchase of plant and machinery

    • Interest expense arising from bank loan to purchase shares where single tier dividend was received

    Correct Answer
    A. Interest expense arising from bank loan to purchase shares where single tier dividend was received
    Explanation
    Interest expense arising from bank loan to purchase shares where single tier dividend was received does not qualify for tax deduction because it is related to an investment in shares, which is considered a capital expense rather than a business expense. The purpose of the loan was to generate dividend income, which is a form of return on investment, and not to support business operations or generate income for the business. Therefore, it does not meet the criteria for tax deductibility.

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  • 44. 

    The following expenditure incurred by Agro Palm Sdn Bhd which is in the business of oil palm plantation qualifies for agriculture allowance:- I. Terracing of land for the purpose of planting oil palm II. Replanting of crops on land cleared for planting III. Construction of an estate office IV. Construction of drains in the plantation

    • I and II

    • I, II and III

    • I, III and IV

    • All of the above

    Correct Answer
    A. I, III and IV
    Explanation
    The correct answer is I, III and IV. Terracing of land for the purpose of planting oil palm qualifies for agriculture allowance as it directly relates to the agricultural activity. Construction of drains in the plantation also qualifies as it is necessary for the proper irrigation and drainage of the crops. However, the construction of an estate office does not directly relate to the agricultural activity and therefore does not qualify for agriculture allowance.

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  • 45. 

    We will have some important visitors here tomorrow for the proposal meeting. _________________________.

    • I'd appreciate it if you can dress professionally

    • I'd appreciate it if you could dress professionally

    • I'll appreciate it if you could dress professionally

    • I'll appreciate it if you can dress professionally

    Correct Answer
    A. I'd appreciate it if you could dress professionally
    Explanation
    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 for someone to dress professionally for the important meeting. The use of "could" instead of "can" adds a sense of politeness and makes it more of a suggestion rather than a demand.

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  • 46. 

     Which of the following expense is eligible for double deduction claim?

    • Remuneration of employees for the period they were hospitalised

    • Payment for services of a contract research and development company

    • Leave passage provided to disabled employees

    • None of the above

    Correct Answer
    A. Payment for services of a contract research and development company
    Explanation
    Payment for services of a contract research and development company is eligible for double deduction claim. This means that the company can claim a deduction for this expense twice, reducing their taxable income. This is because expenses related to research and development are often seen as investments in innovation and are therefore encouraged by the government. By allowing double deduction, the government aims to incentivize companies to invest in research and development activities, which can lead to technological advancements and economic growth.

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  • 47. 

    Which phrases shown below are applicable to the Guidelines on Tax Treatment related to the Implementation of MFRS 121 (Impact of Foreign Currency Translation)? I. Foreign currency II. Presentation currency III. Functional currency IV. Currency in which financial statements are presented

    • I and II

    • I, II and III

    • III and IV

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The phrases "Foreign currency," "Presentation currency," "Functional currency," and "Currency in which financial statements are presented" are all applicable to the Guidelines on Tax Treatment related to the Implementation of MFRS 121 (Impact of Foreign Currency Translation).

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  • 48. 

     __________ I work on this engagement all day, I’ll never finish on time.

    • In spite of

    • Despite

    • Even if

    • Even though

    Correct Answer
    A. Even if
    Explanation
    The phrase "Even if" is the correct answer because it is used to introduce a hypothetical condition or situation that may not actually happen. In this context, it suggests that regardless of the amount of time spent working on the engagement, the speaker believes that they will not be able to finish on time.

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  • 49. 

    Which statement is incorrect? I. Balancing allowance is the withdrawal of capital allowance previously claimed II. The balancing charge cannot be greater than the total amount of capital allowance claimed previously III. Upon disposal of an asset in a control transfer situation, we do not compute balancing charge/balancing allowance IV. Balancing charge/allowance is only computed where there is a sale proceed  

    • I, II and III

    • II, III and IV

    • I and IV

    • All of the above

    Correct Answer
    A. I and IV

Quiz Review Timeline (Updated): Mar 20, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

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  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 10, 2019
    Quiz Created by
    Mydtc
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