Taxation I

Business Income

1. Can every income consider as business income? What are the characteristics of
business income?

2. By choosing two type of business income, create a situation by combining these two
income in order to get gross income.

3. Encik Hafiz is a property agent. Recently he bought 4 acres of agricultural land near the
expanding Rawang Industrial Area in 2017 for RM800,000. The purchase was financed
by a bank loan. He did not develop the land nor did he advertised it for sale. In January
2019, he received an offer from real estate company. He sold 2 acres of the land for
RM900,000. Six months later, he sold the remainder of the land for RM850,000 to
another real estate company in which he had controlling interest.

State with reasons whether the above gains is taxable under the Act.