1.
Which of the following expenses qualify for deduction under the Income Tax Act, 1967?
I. Contribution to Universiti Putra Malaysia library
II. Discount on bond issued which was used in the business operations
III. Renovation of business premises to assist a disabled employee in performing his duties
IV. Cash contribution to a research institute
A. 
B. 
C. 
D. 
2.
Which of the following statements are correct?
I. Payment of alimony to an ex-wife by an individual is deductible as a personal relief up to RM4,000
II. An individual can claim RM7,500 relief if his wife is disabled
III. An individual who is studying part time for the Bachelor of Economics majoring in statistics at a local university is allowed a deduction for the fees paid but subject to a maximum of RM7,000
IV. An individual who had spent RM1,000 for a medical check-up for himself and his wife can claim relief of RM1,000 under medical expenses
A. 
B. 
C. 
D. 
3.
Which of the following allowances / benefits-in-kind received by an employee are exempted from income tax?
I. Interest subsidy of RM15,000 on a loan of RM250,000 used to purchase an apartment in Pandan Indah
II. Car park allowance of RM200 per month for parking in Menara LGB
III. Child care allowance of RM200 per month for a child born in June 2002
IV. Petrol allowance of RM400 per month
A. 
B. 
C. 
D. 
4.
Which of the following payments are subject to Malaysian withholding tax?
I. Payment of rental by a Malaysian company to a Singapore resident company for a ship used in international waters
II. Payment by a Malaysian company to an Australian company for architectural drawings of a 50-storey condominium. The drawings were completed in Australia and discussions were held over a period of time via tele-conference.
III. Payment by XYZ Construction Pte. Ltd. (Malaysian Branch) (resident in Japan) to ABC Pte. Ltd. (resident in Japan) for construction of a bridge on the Malaysian West Coast Expressway
IV. MNM Pte. Ltd. provided invoicing and book-keeping services to MNM Pte. Ltd (Malaysian Branch) for which a charge was made in the Branch accounts for these services that were performed outside Malaysia
A. 
B. 
C. 
D. 
5.
Malaysia has entered into a comprehensive double taxation agreement with the following countries:-
I. Bangladesh and Iran
II. San Marino and Argentina
III. Finland and United States of America
IV. Mauritius and Croatia
A. 
B. 
C. 
D. 
6.
Which of the following statements regarding the development of an approved node in Iskandar Development Region are true?
I. An approved developer is exempted from payment of income tax on income arising from sale of rights over any land in an approved node until year of assessment 2016
II. An approved developer is exempted from payment of income tax on rental of building located in an approved node until year of assessment 2020
III. An approved developer is exempted from payment of income tax on sale of building located in an approved node until year of assessment 2018
IV. An approved developer is exempted from payment of income tax on the provision of management and supervisory services to a developer undertaking a project located in an approved node until year of assessment 2018
A. 
B. 
C. 
D. 
7.
Which of the following statements regarding the Returning Expert Programme are true?
I. An approved individual is an individual who is a Malaysian citizen and resident in Malaysia
II. An application under the Returning Expert Programme must be made between 1 January 2012 and 31 December 2020
III. The applicant should not derive any employment income in Malaysia for at least a continuous period of twenty four months prior to the date of application
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
A. 
B. 
C. 
D. 
8.
Which of the following period will equal to the basis period for a year of assessment?
I. A company changes its date of closing its financial accounts and prepares its audited accounts for the period 1 July 2018 to 31 March 2019
II. A company commences business and prepares its accounts from 1 February 2018 to 31 October 2018
III. A company commences its business and prepares its accounts from 1 April 2018 to 31 December 2018
IV. A company commences its business and prepares its accounts from 1 November 2017 to 31 January 2019
A. 
B. 
C. 
D. 
9.
Which of the following statements are correct?
I. Lease rental of a commercial vehicle exceeding RM100,000 will be disallowed
II. Entertainment that is wholly and exclusively incurred in the production of income will be allowed 50% unless provided otherwise
III. If information that is requested by the Director General of Inland Revenue with regard to the recipients of commission is not furnished within a specified time, the whole commission will be disallowed
IV. Payment of salaries to partners in a limited liability partnership (LLP) is not deductible though the LLP agreement does mention the payment of salaries to partners.
A. 
B. 
C. 
D. 
10.
Real property gains tax is not chargeable in the following transactions:-
I. The transfer of assets by an individual to a company controlled by him
II. The transfer of assets of a deceased person to the trustees of a trust created under a will
III. The disposal of the asset to the Government or State Government
IV. Gift of asset to a nephew
A. 
B. 
C. 
D. 
11.
The following are losses arising from the disposal of chargeable asset which are deductible for computation of Real Property Gains Tax:-
I. A loss arising from a disposal of an asset though Inland Revenue Board has not been notified of such disposal
II. A loss arising from the disposal of shares in a real property company
III. A loss arising from a disposal of an asset which if such disposal had it been a gain would not be taxable.
IV. A loss arising from the disposal of an asset in the fifth year from the date of acquisition
A. 
B. 
C. 
D. 
12.
Which of the following statements are true?
I. The Director General of Inland Revenue may appoint any person as an agent of a taxpayer
II. The agent cannot appeal against the appointment if he holds assets on behalf of taxpayer
III. The agent can be assessed and charged to tax on behalf of taxpayer
A. 
B. 
C. 
D. 
13.
Which of the following statements are correct?
I. An income tax appeal can be made to the Special Commissioners of Income Tax, the High Court and, finally, the Court of Appeal.
II. An income tax appeal can be made to the Special Commissioners of Income Tax, the High Court, the Court of Appeal and, finally, the Federal Court
III. An income tax appeal can be made to the High Court, the Court of Appeal and the Federal Court
IV. An income tax appeal can be made to the Special Commissioners of Income Tax, the Sessions Court, the High Court and, finally, the Court of Appeal
A. 
B. 
C. 
D. 
14.
Which of the following receipts are taxable?
I. Payment received for the late delivery of a merchant ship sent for repair
II. Payment received for the cancellation of the contract to supply goods by one of the many suppliers
III. Payment received for not carrying out mining operations near the railway tracks
A. 
B. 
C. 
D. 
15.
A new workshop had the following record of events. When did the workshop commence business?
A. 
First rented its premises on 15 January 2018
B. 
First hired its staff on 1 March 2018
C. 
First opened the premises to the public on 15 March 2018
D. 
First car serviced on 18 March 2018
16.
In July 2017, Axis Sdn Bhd, a Malaysian tax resident company entered into a royalty agreement with its parent company, Nex GmbH where Axis is to pay royalty to Nex GmbH on an annual basis for the use of know-how. Axis accrued the royalty of RM20,000 in its books for the year ended 30 June 2018. What is the correct tax treatment for Axis for year of assessment 2018?
I. Axis must deduct and remit withholding tax of RM2,000 to the IRB within one month of the accrual date
II. Axis must deduct and remit withholding tax of RM1,400 to the IRB within one month of the accrual date as per double taxation agreement
III. Axis does not need to deduct and remit withholding tax but a claim for Section 33 deduction may involve an imposition of penalty
IV. Axis can claim Section 33 deduction for year of assessment 2018 and does not have to account for withholding tax until the royalty is paid
A. 
B. 
C. 
D. 
17.
Generis Sdn Bhd organized a family trip to Pulau Langkawi for its employees in July 2018. The total cost is RM70,000 comprising cost of travel fares amounting to RM40,000 and cost of meals and accommodation amounting to RM30,000. Please select the correct statement regarding the tax treatment of the expense:-
A. 
Generis Sdn Bhd is allowed a deduction for the cost of meals and accommodation of RM30,000 only as leave passage is specifically disallowed by the Act
B. 
Generis Sdn Bhd is allowed a deduction for the total cost of RM70,000 as the RM40,000 is not a leave passage
C. 
Generis Sdn Bhd is allowed a deduction for the full cost of RM70,000 where the family trip is held yearly within Malaysia
D. 
18.
Which of the following instruments is not chargeable to stamp duty?
I. Statutory declaration
II. Cheque
III. Insurance policy
A. 
B. 
C. 
D. 
19.
Which of the following is incorrect based on the current practice of the Malaysian Inland Revenue Board?
I. Amounts paid to a non-resident for technical services rendered in Malaysia and Singapore is subject to withholding tax
II. Reimbursement of out-of-pocket expenses paid to non-resident in connection with technical services rendered in Malaysia is subject to withholding tax
III. Withholding tax borne by a payer is tax deductible
A. 
B. 
C. 
D. 
20.
Encik Lim is 45 years old and in good health. On 30 June 2018, he received a sum of RM195,000 as compensation for loss of office as Director of a public-listed company, a position which he has held since 1 January 2012. What amount will be included in his employment income for the year of assessment 2018?
A. 
B. 
C. 
D. 
21.
Which of the following are duty free islands as at 31.12.2018?
I. Pulau Langkawi
II. Pulau Pangkor
III. Pulau Labuan
IV. Pulau Tioman
A. 
B. 
C. 
D. 
22.
Which of the following cannot be considered as ‘plant’ or ‘industrial building’ for the purpose of claiming capital allowance?
I. Artificial grass surface of a futsal centre
II. A building in a simulated training grounds of a driving school
III. Warehouse for storage of goods by a trading company
IV. Law books of a legal firm
A. 
B. 
C. 
D. 
23.
Excise duty is applicable upon the import of :-
I. Cars
II. Cigarettes
III. Liquor
IV. Mobile phones
A. 
B. 
C. 
D. 
24.
Which of the following allowances does have a claw back provision in respect of allowances claimed on assets disposed within a specified number of years of acquisition?
I. Investment Tax Allowance
II. Capital Allowance
III. Reinvestment Allowance
IV. Investment allowance for service sector
A. 
B. 
C. 
D. 
25.
Which of the following is the basis for the valuation of unquoted shares for stamp duty purposes?
I. Sale consideration
II. Net tangible asset value
III. Cost plus
A. 
B. 
C. 
D.