Stage 1 (Team) Deloitte Tax Challenge 2019

Forest allowance refers to the entitlement of a person who extracts timber under a concession to claim allowances on certain expenditures related to the forest. Statement I states that forest allowance can be claimed on expenditure incurred on the construction of roads in the forest. Statement II explains that these roads may have little value if timber extraction ceases, unless they are used for other timber-related activities or farming. Statement III states that expenditure on buildings in the forest also qualifies for the allowance. Lastly, statement IV mentions that a person can choose to treat the buildings as industrial buildings. Therefore, all of the above statements are relevant to forest allowance.

The statement "Payment by employer to employee at the end of a contract is a compensation for loss of employment" is incorrect because the payment at the end of a contract is not necessarily a compensation for loss of employment. It could be a payment for completing the terms of the contract or for any other agreed-upon reasons.

The correct answer is "Gratuity paid to an employee aged 52 who had served the company for 6 years and suffered a heart attack." This is because the payment of gratuity to an employee who has suffered a heart attack is fully exempted from taxation. The other options mentioned do not specify any exemption criteria, so they may be subject to taxation.

The student gets an aggregate of 60% marks in five subjects. The marks are in the ratio 10:9:8:7:6. This means that the student scored 10x, 9x, 8x, 7x, and 6x marks in the five subjects respectively, where x is a constant. The passing marks are 50% of the maximum marks. Since each subject has the same maximum marks, the passing marks for each subject would be 0.5x. The student passed the exam in a subject if he scored more than or equal to 0.5x marks in that subject. Comparing the scores, it can be seen that the student passed in all subjects except the subject with 6x marks. Therefore, the student passed the exam in 4 subjects.

Statement I is incorrect because there is no mention of lease rental of a commercial vehicle exceeding RM100,000 being disallowed.

Statement II is correct because entertainment expenses that are wholly and exclusively incurred in the production of income are allowed at a rate of 50%, unless provided otherwise.

Statement III is correct because if the requested information regarding the recipients of commission is not furnished within a specified time, the whole commission will be disallowed.

Therefore, the correct answer is II and III.

The correct answer is I and II. Statement I is correct because payment of alimony to an ex-wife is deductible as a personal relief up to RM4,000. Statement II is correct because an individual can claim RM7,500 relief if his wife is disabled.

The statement "I. An approved individual is an individual who is a Malaysian citizen and resident in Malaysia" is true because the Returning Expert Programme is specifically for Malaysian citizens who are residents in Malaysia.

The statement "IV. An option to be taxed at 15% shall be made in the year of assessment or the following year of assessment of the approved individual's return to Malaysia" is also true because one of the benefits of the programme is the option for approved individuals to be taxed at a lower rate of 15% in the year of assessment or the following year after their return to Malaysia.

The explanation for the correct answer is that statement I is true because the remuneration of a REIT manager is deductible. Statement III is also true because legal, valuation, and consultancy fees incurred for establishing a REIT are deductible in determining the adjusted income from the letting of property. Lastly, statement IV is true because the establishment of REIT expenditure is deductible in the basis period for a year of assessment in which the business commenced. Therefore, the correct answer is I, III, and IV.

The correct answer is RM39,000. Stamp duty is a tax imposed on certain legal documents, including property transactions. In Malaysia, the stamp duty for the purchase of a commercial building is calculated based on the purchase price. The stamp duty rate for commercial properties is 3% for the first RM1 million and 4% for the remaining amount. In this case, the purchase price is RM1.5 million, so the stamp duty would be 3% of RM1 million (RM30,000) plus 4% of the remaining RM500,000 (RM20,000), totaling RM39,000.

All of the buildings mentioned in the options qualify for capital allowances if the business concerned is registered as required. This means that the airport building in Johor Bharu, the 3-star hotel building in Pulau Pangkor, the private maternity home located in Kuala Lumpur, and the laboratory used for approved research are all eligible for capital allowances.

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The correct answer is that legal, valuation, and consultancy fees for establishing a REIT prior to approval are deductible. This means that the expenses incurred in the process of setting up a real estate investment trust, such as legal fees for drafting the necessary documents, valuation fees for determining the value of the properties, and consultancy fees for professional advice, can be deducted from the taxable income of the REIT. This deduction helps to incentivize the establishment of REITs and supports the growth of the real estate sector.

All of the options mentioned in the answer are correct. According to the given information, interest arising from non-convertible debentures approved by the Securities Commission, a bank or financial institution licensed under the Banking and Financial Institutions Services Act 19892013, bonds issued by Pengurusan Danaharta Nasional Berhad, and foreign source interest income remitted to Malaysia are not taxable in the hands of a real estate investment trust. Therefore, all of the options mentioned in the answer are correct.

Encik Lim will have RM135,000 included in his employment income for the year of assessment 2018. This is because the compensation he received for loss of office as a Director is considered as employment income.

The correct answer is I, II and III.

A claw back provision allows the government to reclaim or reduce the tax benefits or allowances previously claimed by a taxpayer. In this case, the question is asking which allowances have a claw back provision in relation to assets that are disposed of within a specified number of years after acquisition. Investment Tax Allowance, Capital Allowance, and Reinvestment Allowance all have this claw back provision, as they are subject to certain conditions and restrictions that may lead to a reduction or recapture of the allowances if the assets are disposed of too soon. Therefore, the correct answer is I, II and III.

Losses incurred in a basis period for a year of assessment can be carried forward and deducted for 7 years following that year. This means that if a business incurs losses in a particular year, it can offset those losses against its income in future years, reducing its tax liability. Similarly, capital allowance for a business claimed for a year of assessment can be deducted against that business income until it is fully utilized. This allows businesses to deduct the cost of their capital assets over time, instead of all at once, providing a tax benefit. Therefore, statements I and III are correct.

All of the above options indicate scenarios in which the payment by a Malaysian resident company to a non-resident company is not subject to withholding tax. The first option states that if services were performed outside Malaysia before 17.1.2017, but the payment was made after that date, no withholding tax is applicable. The second option states that if the payment was made before 17.1.2017, but services were performed outside Malaysia after that date, no withholding tax is applicable. The third option states that if the payment was made for services performed in Singapore before or after 17.1.2017, no withholding tax is applicable. Therefore, all of the above options indicate scenarios where withholding tax is not applicable.

A qualifying company that increases its export sales of agricultural produce or manufactured product is exempt in respect of the following: I. 30% of value of increased exports where the value of increased exports is at least 50%. This means that if a company increases its export sales by at least 50%, it will be exempt from 30% of the value of the increased exports. III. 100% of value of increased exports for a company that is awarded the Export Excellence Award by MITI. This means that if a company is awarded the Export Excellence Award by MITI, it will be exempt from 100% of the value of the increased exports. Therefore, the correct statements are I and III.

The correct answer is that the annuity is deemed derived from Malaysia. This means that regardless of whether the individual died while residing in Malaysia or outside of Malaysia, the annuity is considered to have originated from Malaysia. This has implications for taxation and other legal matters related to the deceased individual's estate.

The correct answer is "had". This is because the sentence is in the past tense and is expressing a wish or regret about something that didn't happen. "Had" is the past perfect form of the verb "to have" and is used to indicate that something happened before another past event. In this case, it suggests that the person wished that he had come last night, but he didn't.

The question asks for the smallest perfect square number that is divisible by 6, 9, and 15. To find this number, we need to find the least common multiple (LCM) of these three numbers. The LCM of 6, 9, and 15 is 90. However, since we are looking for a perfect square number, we need to find the smallest perfect square that is divisible by 90. The smallest perfect square that is divisible by 90 is 900, making it the correct answer.

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The given statement is incorrect because there is no requirement for the business to be in operation for a minimum period of 36 months in order to receive the exemption.

All of the above expenses - rent payable by the employee for the accommodation, repair and maintenance of the premises, assessments, and insurance premiums - are deductible against employment income. This means that the employee can subtract these expenses from their total income, reducing the amount of taxable income they have to report. By deducting these expenses, the employee can potentially lower their overall tax liability.

A loss arising from the disposal of an asset in the fifth year from the date of acquisition is deductible for computation of Real Property Gains Tax. This means that if an individual sells an asset and incurs a loss on it, they can deduct that loss from their taxable income for Real Property Gains Tax purposes. However, losses arising from the disposal of an asset though Inland Revenue Board has not been notified of such disposal, a loss arising from the disposal of shares in a real property company, and a loss arising from a disposal of an asset which if such disposal had it been a gain would not be taxable are not deductible for computation of Real Property Gains Tax.

Statement I is correct because on commencement of operations, the first accounting period of 8 months is considered as the basis period for the first year of assessment.

Statement III is correct because if a company fails to close its accounts on the same date of 31 December in the following year, the Director General of Inland Revenue will determine the basis periods for the failure year and the year following the failure year.

Statement IV is correct because a basis period for a year of assessment can be more than 12 months, depending on the specific circumstances of the company.

An individual businessman may sponsor a hallmark event. This means that an individual who owns a business can provide financial support for a significant event that is considered important on a national, regional, or international level. There is no restriction on the location of the event, and it does not have to be held in Iskandar Malaysia. However, it is not mentioned whether a double deduction is allowed for cash contributions, and there is also no specific timeframe mentioned for submitting the application.

Payments subject to Malaysian withholding tax are those made by a Malaysian company to a non-resident company for services rendered in Malaysia. In this case, payment of rental by a Malaysian company to a Singapore resident company for a ship used in international waters (I) is subject to withholding tax because the ship is being used in Malaysia. Similarly, payment by XYZ Construction Pte. Ltd. (Malaysian Branch) to ABC Pte. Ltd. for construction of a bridge on the Malaysian West Coast Expressway (III) is also subject to withholding tax as it involves construction services provided in Malaysia. Therefore, the correct answer is I and III.

Option I states that the PRS provider needs to deduct withholding tax at 8% on the amount withdrawn by the investor before the age of 55 years. This means that if an investor withdraws money from their PRS before the age of 55, the PRS provider will deduct 8% of the withdrawn amount as withholding tax. Option IV states that withdrawal from PRS because of a serious disease is not taxable. This means that if an investor needs to withdraw money from their PRS due to a serious disease, they will not be subject to any tax on the withdrawal. Therefore, options I and IV are true regarding a private retirement scheme (PRS).

All of the above options can be considered as the basis period for a year of assessment. In option I, the company changed its financial accounts closing date, so the period from 1 July 2018 to 31 March 2019 can be considered as the basis period. In option II, the company commenced business and prepared its accounts from 1 February 2018 to 31 October 2018, which can also be considered as the basis period. Similarly, in option III, the company commenced business and prepared its accounts from 1 April 2018 to 31 December 2018, which can be considered as the basis period. Lastly, in option IV, the company commenced business and prepared its accounts from 1 November 2017 to 31 January 2019, which can also be considered as the basis period. Hence, all of the above options fulfill the criteria for the basis period.

Mr. Freddy Chia is not required to pay stamp duty on plant and machineries, inventories, account receivables, and bank term loans. Stamp duty is a tax imposed on certain legal documents, such as property transactions and share transfers. In this case, land and buildings (I) are not exempt from stamp duty, as they are not included in the answer. Shares listed on BURSA (III) are also not exempt from stamp duty. Therefore, the correct answer is II, IV, V, VI.

The correct answer is "Only a company registered under the Companies Act 2016 may invest in a bionexus status company." This statement is incorrect because any individual or company, regardless of their registration under the Companies Act 2016, can invest in a bionexus status company. The Companies Act 2016 does not restrict investment in bionexus status companies to registered companies only.

If a resident individual unit holder receives a distribution from a real estate investment trust (REIT), they may be subject to a withholding tax of 10%. This means that a portion of the distribution will be withheld by the REIT and paid directly to the tax authorities. The remaining amount will be received by the unit holder. This withholding tax is applicable regardless of whether the REIT is exempt from income tax or not. Therefore, the correct statement is that a resident individual unit holder may be subject to a withholding tax of 10% on the distribution received from the REIT.

Receipts for late delivery of a merchant ship sent for repair and for the cancellation of a contract to supply goods by one of the many suppliers are both taxable. This means that income received from these sources is subject to taxation. Receipts for not carrying out mining operations near railway tracks, on the other hand, are not taxable.

Stamp duty is a tax levied on certain legal documents, such as agreements, contracts, and property transactions. In this case, all three instruments mentioned - statutory declaration, cheque, and insurance policy - can be subject to stamp duty depending on the jurisdiction and the specific circumstances. Therefore, none of the given options correctly identify an instrument that is not chargeable to stamp duty.

The correct answer is "The religious institution is not exempted from filing the income tax return form." This means that religious institutions are actually exempted from filing the income tax return form.

If a listed REIT distributes 80% of its income to unit holders, both the REIT and the unit holders will be subject to taxation on the distributed income. This means that the REIT will be taxed on its income, and the unit holders will also be taxable on the income they receive from the REIT. This is in contrast to the first statement, which suggests that only the unit holders would be taxed on the distributed income. The third statement is also incorrect, as accumulated undistributed income of a REIT that was previously taxed cannot be distributed to unit holders without tax credits. Therefore, the correct answer is that if a listed REIT distributes 80% of its income to unit holders, both the REIT and the unit holders will be taxable on the distributed income.

The correct answer is that the purpose of the DRP is to resolve Forms Q and applications under Section 131 and 131A. This means that taxpayers can use the DRP to resolve any disputes they have regarding these forms and sections with the Inland Revenue Board.

The correct answer is "All rental income is treated as business income." This means that for real estate investment trusts, all rental income is considered as business income for tax purposes. This is an important distinction because it affects how the income is taxed and what deductions and allowances can be claimed against it.

Expenditure incurred in advertising for staff six months before commencement of business, expenditure incurred in training staff before commencement of business, and certain capital expenditure on incorporating the new company with authorized share capital not exceeding RM2.5 million such as the cost of preparing and printing the memorandum and articles of association of the company are all tax deductible pre-commencement of business expenses in the year of assessment 2018.

The principle of mutuality states that there must be a mutual relationship between the contributors to a fund and the participators in the surplus. This means that the individuals who contribute to the fund must also be the ones who benefit from any surplus generated. Statement I correctly reflects this principle. Statement II states that the dealing with members should not be by way of trade, which is also in line with the principle of mutuality. Statement III states that amounts paid by members to attend a talk organized by the club will not be taxable, which is a correct implication of the principle. Statement IV states that transactions with non-members will be taxable, which is also consistent with the principle. Therefore, all of the statements are correct.

The correct answer is that if the surrendering company gives incorrect information, a penalty of 100% of tax undercharged by the claimant company will be imposed after the SPVD period has ended. This means that if a company provides inaccurate information during the SPVD period, they will be penalized by having to pay 100% of the tax that was not correctly reported by the claimant company.

The correct answer is "All of the above". This means that all three statements (I, II, and III) are correct. According to Section 15 of the Stamp Act 1949, the instrument on which relief is applied must be completed within 12 months from the date of registration of the transferee company, the date of resolution to increase the issued share capital of the transferee company, or the date the agreement is filed with the Registrar of Companies. Therefore, all three options are correct.

An appeal can be made against all deemed assessments.

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The correct answer is I, III and IV. Statement I is correct because when a motorcar is shared with another employee, the value of the benefit in kind for the motorcar and petrol will be reduced proportionately. Statement III is correct because if the prescribed value method is applied to value the benefit in kind for a motorcar that is more than 5 years old, the value of the benefit in kind for petrol remains unchanged. Statement IV is correct because the value for household furnishings may also be adjusted suitably by reference to the period provided.

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The time limit for the claim of relief for error or mistake in respect of the company's annual tax return for the year of assessment 2012 is up to 31 December 2018. This means that the company has until the end of 2018 to make any claims for relief regarding errors or mistakes in their tax return for the specified year. After this date, they will no longer be able to claim such relief.

The correct answer is "The domestic tour package must be for Malaysian residents." This statement is the only one that specifically relates to the exemption for a tour operating business providing domestic tour packages. The other statements mention the period of exemption and the inclusion of transportation or accommodation, but they do not directly relate to the eligibility criteria for the exemption.

Expenses that can be claimed as personal relief in YA 2018 subject to a maximum amount are I, II, and III. Physics for Form 5 revision book (I) can be claimed as an educational expense. Captain Marvel comic (II) can be claimed as a reading material expense. Huawei P20 smartphone (III) can be claimed as a personal computer expense. However, the electric bicycle (IV) is not eligible for personal relief.

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An individual who elects not to furnish a return form must meet the following conditions:
I. He has employment income only, meaning he does not have any other sources of income such as business income or investment income.
II. His employment with the one employer can be for less than 12 months in a calendar year, indicating that he may have worked for multiple employers within a year.
IV. His employer should not be responsible for paying his tax, suggesting that the individual is responsible for paying his own taxes instead of having them deducted by the employer. Therefore, the correct answer is I, II and IV.

All of the receipts mentioned in the question, including entrance fees, annual subscription, and annual dinner charges, are taxable for the trade association. This means that the trade association is required to pay taxes on the income generated from these sources.

The golfer received a total of RM265,000 (RM200,000 appearance fee + RM15,000 accommodation and meals + RM10,000 airfare + RM50,000 prize money). The withholding tax rate in Malaysia is 15%. Therefore, the amount of withholding tax required is 15% of RM265,000, which is RM39,750. However, the golfer is entitled to a tax credit of RM6,000 (15% of RM40,000, which is the maximum tax credit allowed). Therefore, the final amount of withholding tax required is RM39,750 - RM6,000, which equals RM33,750.

The expenditure on purchasing a bus that uses natural gas and is used to transport factory workers does not qualify for accelerated capital allowance. This is because accelerated capital allowance is typically provided for investments in energy-efficient equipment or environmentally friendly assets. While the bus may be using natural gas, it is primarily being used for transportation purposes rather than for energy efficiency or environmental benefits.

The correct answer is that expenses for the 3 years relating to the advance rental for the bungalow will be allowed in the year the advance rental is received. This means that the expenses incurred for maintaining and managing the bungalow can be deducted in the year the rental income is received, even if the rental income is for future years. This is in line with the general principle of matching expenses with the corresponding revenue in the same accounting period.

The given answer states that statements II and III are false. Statement II claims that if tax had been repaid to a taxpayer after an appeal and it was discovered to be an error, the Director General may raise an assessment within five years after the expiration of that year of assessment. This statement is false because the Director General can actually raise an assessment within seven years, not five. Statement III claims that if a taxpayer had been negligent in completing their return form and there is additional assessment to be raised, the Director General may raise an assessment within seven years after the expiration of that year of assessment. This statement is false because the Director General can actually raise an assessment within five years, not seven.

A speaker at a Toastmasters Club meeting is not considered a "public entertainer" in the Income Tax Act, 1967 because Toastmasters Club meetings are typically private events where members practice and improve their public speaking skills. Unlike other options listed, such as a presenter at a shopping mall event or a violin player on TV, a Toastmasters Club meeting is not open to the general public and does not involve entertainment for a wider audience. Therefore, the speaker at a Toastmasters Club meeting does not fall under the category of a "public entertainer" according to the Income Tax Act, 1967.

The given answer is correct because it accurately identifies the statements that are correct regarding furnishing of information to the tax authorities. Statement I states that the Director General has the authority to request information from a taxpayer within a specified time. Statement II states that if the taxpayer fails to furnish supporting documents within the specified time, the expense will not be allowed as a deduction. Statement III states that the Director General may consider allowing a deduction of expenses if the taxpayer can provide proof that the documents were lost or destroyed due to a natural disaster. Therefore, the correct answer is I, II, and III.

The correct answer is "First accounts prepared from 1.10..2018 to 31.12.2018". This is because the basis period for a year of assessment for a sole proprietor is the period for which the accounts are prepared. In this case, the first accounts prepared from 1.10.2018 to 31.12.2018 cover the entire year of assessment and can be accepted as the basis period. The other options either do not cover the full year or have incorrect dates, making them ineligible as a basis period.

In a case of an asset that is disposed of within 2 years and subject to controlled sale, the capital allowance given will not be withdrawn.

The correct answer is PII premium paid by Mr Lee for his engineering practice. This is because professional indemnity insurance (PII) is typically purchased by professionals in certain fields, such as doctors and engineers, to protect themselves against claims of negligence or malpractice. Since Mr Lee is paying the premium for his engineering practice, it qualifies for deduction. The other options, such as Dr Lim's premium as a locum and Dr Ali's premium as an employee, do not qualify for deduction as they are not related to the practice of a profession or trade.

The correct answer is I & V. The explanation for this is that the words "written law" in the Income Tax Act 1967 include income tax rules, which are specific regulations and guidelines related to income tax. Additionally, the words "written law" also include leasing regulations, which are laws and regulations related to leasing activities. Therefore, the correct answer is I & V.

The incorrect statement is I. In the case of Howden Boiler & Armaments Co Ltd v Stewart, boiler making and ammunition shells making were not treated as two separate businesses.

The correct answer is "None of the above". This is because all the given options involve the purchase and use of a used building for different purposes, but none of them are considered industrial buildings. The first option mentions a building purchased in Cyberjaya and rented to an approved MSC status company, which suggests it may be used for technology or digital-related activities rather than industrial operations. The second option mentions a building used as an old folks care centre, which falls under the category of healthcare or social welfare rather than industrial purposes. The third option mentions a building used as a kindergarten, which is also not considered an industrial building. Therefore, none of the given options are considered industrial buildings.

All of the statements mentioned in the options relate to the exemption for a tour operating business which provides group inclusive tour packages to or in Malaysia. The first statement states that the total number of tourists from outside Malaysia should not be less than 750 in a basis period. The second statement indicates that a separate account will be maintained specifically for the qualifying activity. The third statement mentions that the Ministry of Tourism and Culture will verify the total number of tourists. Therefore, all of these statements are relevant to the exemption for a tour operating business in Malaysia.

In a controlled sale of plant & machinery, the qualifying expenditure (QE) and the date the asset is deemed to have been acquired by the acquirer is not determined in accordance with Schedule 3 of the ITA 1967. This means that the calculation of the QE and the acquisition date is not based on the provisions outlined in Schedule 3 of the ITA 1967.

All of the above statements are correct. In a hearing at the SCIT, if one party is absent without notification, the SCIT may hear and decide the appeal. Similarly, if both parties are absent without notification, the SCIT may decide or dismiss the appeal. Additionally, if both parties are absent, one party may request the SCIT to decide on the appeal. Therefore, all three statements are correct.

The statement that is incorrect with regard to the banking business under the Income Tax Act 1967 is that the statutory income of a Malaysian Branch of a non-resident bank will include all income wherever accruing or derived.

The correct answer is "The company has made a claim for deduction in the basis period under any other rules made under section 154 of the Act including the rules in relation to capital allowance under Schedule 3." This answer is correct because the other clauses mention specific incentives or allowances that would make the company ineligible for accelerated capital allowance. However, this clause does not specify any specific incentives or allowances, so it does not exclude the company from being eligible for accelerated capital allowance.

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The correct answer is I & III. This is because the first condition states that the registered owner must be a Malaysian citizen, while the third condition states that a tenancy agreement can be signed on a specific date and be effective on a specific date in 2018. The second condition, regarding a Malaysian citizen working and residing in Singapore, is not mentioned as a condition for exemption.

All of the above statements are correct. In order for a company to receive an incentive for providing private healthcare services in a new private healthcare facility, the project must be approved by the Minister of Health. Additionally, the project must be registered with the Malaysia Healthcare Travel Council. Lastly, at least 5% of the number of patients must be health travelers.

All of the statements relating to gifts that are deductible in arriving at total income are correct. This means that a manuscript gifted to the Kedah state government valued at RM1 million, a sum of RM20,000 given to the library of Sekolah Menengah St. John, and a sum of RM10 million made to the Selangor state government (equivalent to 12% of the company's aggregate income) are all deductible.

The correct answer is that a religious institution that is exempted needs to complete its income tax return for record purposes. This statement is not in accordance with the guidelines of the Inland Revenue Board. According to the guidelines, a religious institution that is exempted from tax is not required to complete an income tax return.

Royalty payments are made for the use of intellectual property or rights. In this case, option I refers to the use of a design, which can be protected by copyright and may require royalty payments. Option II refers to the use of a video tape in a cafe, which involves the public performance of copyrighted material and would also require royalty payments. Option III refers to the use of software, which is typically protected by licensing agreements and would involve royalty payments. Option IV is not included in the correct answer because it does not involve the use of intellectual property or rights, but rather a contractual agreement. Therefore, the correct answer is "All of the above" as it includes all the instances where royalty payments would be applicable.

The part of the sentence that is wrong is "are practising very hard." The subject of the sentence is "The captain along with his team," which is singular. Therefore, the verb should be "is practising very hard" to agree with the subject.

The triangle has the largest perimeter because triangles have the most sides compared to circles and squares. The perimeter of a shape is the total length of its sides, and since a triangle has three sides while a circle has no sides and a square has four sides, the triangle will have the longest perimeter.

All of the given receipts are subject to income tax.

I. Gains derived by a jockey from betting on horse-racing are considered taxable income as it is a form of gambling winnings.

II. Gains from providing illegal gaming machines for use by the public are also subject to income tax, even though the activity may be illegal.

III. Money received for introducing a friend who purchased a house from a developer is considered a commission or referral fee, which is taxable income.

IV. Payment received for contributing an article to the Star (one article for the whole year) is considered income from self-employment or freelance work, and is therefore subject to income tax.

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Statement II states that certain expenses incurred by a unit trust, such as manager's remuneration and audit fees, are not allowable as they are not wholly and exclusively incurred in the production of investment income. Statement III states that rental income received by a unit trust (excluding REITs and PTFs) is not treated as a business source. Statement IV states that a unit trust (excluding REITs and PTFs) that receives rental income can claim a special deduction for qualifying capital expenditure incurred. Therefore, the correct answer is II, III, and IV.

According to the current practice of the Malaysian Inland Revenue Board, amounts paid to a non-resident for technical services rendered in Malaysia and Singapore are subject to withholding tax. Therefore, statement I is incorrect. Additionally, withholding tax borne by a payer is not tax deductible according to the current practice. Therefore, statement III is also incorrect. The correct answer is I and III.

Mr Chin, aged 55 years, will be taxed on the whole amount received because he was paid RM100,000 before retiring at the age of 60 years. This indicates that the payment he received is considered as income and is subject to taxation. In contrast, Mr Tan received a lump sum after ending his contract, and Mr Lim received a lump sum after optional retirement, both of which may not be considered as taxable income. Therefore, the correct answer is Mr Chin.

The statement I is true because the Director General of Inland Revenue has the authority to appoint any person as an agent of a taxpayer. This means that the Director General can delegate certain tax-related responsibilities to someone else on behalf of the taxpayer.

The statement III is also true because the agent can be assessed and charged to tax on behalf of the taxpayer. This means that if the agent is found to have taxable income or assets, they can be held accountable for paying the taxes on behalf of the taxpayer.

Therefore, the correct answer is "I and III" because both statements I and III are true.

The question asks for a choice that cannot be considered a "plant" or "industrial building" for the purpose of claiming capital allowance. Capital allowance is a tax deduction that businesses can claim on certain types of assets, such as machinery and buildings used for business purposes.

Option II, a building in a simulated training grounds of a driving school, cannot be considered a plant or industrial building as it is not used for the production or storage of goods, but rather for training purposes.

Option III, a warehouse for storage of goods by a trading company, can be considered a plant or industrial building as it is used for the storage of goods, which is a business activity.

Therefore, the correct answer is II and III.

Crude palm kernel oil and standard Malaysian rubber would not qualify for the exemption for increase in export sales.

If 6 pipes can fill the tank in 1 hour and 20 minutes, it means that each pipe can fill 1/6 of the tank in that time. To find out how much time it will take 5 pipes to fill the tank, we need to calculate 1/5 of the tank. Since 1/6 is equal to 80 minutes, 1/5 would be 80 * 6/5 = 96 minutes. Therefore, it will take 5 pipes 96 minutes to fill the tank.

The correct answer is that the SPVD applies to taxpayers who are registered with the Inland Revenue Board (IRB), taxpayers who have filed incorrect returns, taxpayers who have not registered with IRB, or persons who have failed to stamp instruments within 7 months of executing the instrument. This means that the program is open to a wide range of individuals who may have tax-related issues, including those who have made mistakes in their tax filings or have not fulfilled their tax obligations.