Stage 1 (Team) Deloitte Tax Challenge 2019

158 Questions | By Mydtc | Updated: Mar 21, 2022 | Attempts: 831

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Stage 1 (Team) Deloitte Tax Challenge 2019 - Quiz

Questions and Answers

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.
  
  I and II
- B.
  
  I, II and III
- C.
  
  I, II and IV
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  II and III
- C.
  
  II, III and IV
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  I, II and III
- C.
  
  I, II and lV
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  I and III
- C.
  
  I, II and III
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  I and IV
- C.
  
  III and IV
- D.
  
  All of the above
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.
  
  I
- B.
  
  II
- C.
  
  III
- D.
  
  None of the above
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.
  
  I and II
- B.
  
  I and IV
- C.
  
  I, II and III
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  I and III
- C.
  
  III only
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  II only
- C.
  
  II and III
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  I, II and III
- C.
  
  I, II and IV
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  II and III
- C.
  
  II, III and IV
- D.
  
  IV only
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.
  
  I only
- B.
  
  I and II
- C.
  
  I and III
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  I and III
- C.
  
  I, II and III
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  II and III
- C.
  
  All of the above
- D.
  
  None of the above
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.
  
  I and II
- B.
  
  I and III
- C.
  
  III
- D.
  
  All of the above
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.
  
  None of the above
18.

Which of the following instruments is not chargeable to stamp duty? I. Statutory declaration II. Cheque III. Insurance policy
- A.
  
  I and II
- B.
  
  II
- C.
  
  II and III
- D.
  
  None of the above
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.
  
  I and II
- B.
  
  I and III
- C.
  
  III
- D.
  
  None of the above
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.
  
  RM195,000
- B.
  
  RM156,000
- C.
  
  RM135,000
- D.
  
  RM130,000
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.
  
  I and III
- B.
  
  II and III
- C.
  
  I, II and III
- D.
  
  I, III and IV
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.
  
  I and II
- B.
  
  II and III
- C.
  
  I and IV
- D.
  
  None of the above
23.

Excise duty is applicable upon the import of :- I. Cars II. Cigarettes III. Liquor IV. Mobile phones
- A.
  
  I and II
- B.
  
  I, II and III
- C.
  
  I and III
- D.
  
  All of the above
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.
  
  I and II
- B.
  
  I, II and III
- C.
  
  II, III and IV
- D.
  
  All of the above
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.
  
  I
- B.
  
  I and II
- C.
  
  I and III
- D.
  
  All of the above