Taxation in Malaysia Course Assessment 2 May 2022
1. Identify and explain any FOUR (4) expenses which are disallowable Section 39 of the Income Tax Act 1967. [10 marks] 2. Explain under the Income Tax Act 1967 instances whereby interest income is deemed to be derived from Malaysian source.
3. Distinguish between "the enduring benefit asset test" and the "fixed and circulating capital test" when testing for items which are "capital i h nature". 4. Explain "royalty under the Income Tax Act 1967. [10 marks] [10 marks] 5. Provide instances whereby a taxpayer can claim child relief according to Section 48(1) of the Income Tax Act 1965. [10 marks] [10 marks] 6.(a) Provide the costs incurred on the plant or machinery used for the purpose of the business which entitled to be included as "qualifying expenditure in tax law. . A van costing RM30,000 • Air conditioner costing RM3,000 [15 marks]
(b) Tingtong bought the following assets during the year 2017 for his retail business. The Inland Revenue has sent notice to him that he is being audited for the years of assessment 2018 to 2022. Table and chairs costing RM2,000 • Computer costing RM4,000 Required: Prepare the capital allowance and residual expenditure schedules for the above assets for the years of assessment 2018 to 2021. [35 marks]