CONFIDENTIAL 1 AC/JAN 2022/TAX467/GROUPPROJECT

UNIVERSITI TEKNOLOGI MARA

GROUP PROJECT

COURSE : TAXATION 1
COURSE CODE : TAX 467
DATE : 17 JAN 2022

INSTRUCTIONS TO CANDIDATES

1. This is a group project. Students are required to form a group of 6 persons. Free
rider/s is/are not entitled for any marks.

2. Answer the question and fill in the tax return. Students must answer all questions
within 10 days (18 Jan – 27 Jan 2022) and submit the answer to the respective
teaching lecturer on 28 Jan 2022.

3. This pack consists of:

i. Question paper
ii. Blank Form e-B 2021 and BE 2021
iii. Appendix 1 – EA Form

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QUESTION 1

Ikram is a statutory Director with Techbond Sdn Bhd since 1 April 2016. He received
director’s fees of RM240,000 in the year 2021. A corresponding Monthly Tax Deduction
(MTD) of RM48,000 was paid in respect of him for the year 2021.

Ikram also runs a bakery, Pastry Pro Enterprise, which was established on 1 August 2018.
The income statement for the year ended 31 December 2021 of Pastry Pro Enterprise is as
follows:
Note RM RM
Sales 660,000
Less: Cost of goods sold 1 (240,000)
Gross Profit 420,000
Add: Other incomes 2 77,000
497,000

Less: Expenses
Remuneration 3 155,000
Lease rental 4 18,000
Repair and maintenance 5 4,400
Water and electricity 6 12,300
Entertainment expenses 7 4,600
Legal fees 8 5,300
Donation 9 4,000
Bad debts 10 5,800
Fees 11 5,500
Zakat 12 4,100
Depreciation 10,200 (229,200)
Net profit 267,800

Additional information:
1. Cost of goods sold comprises of:
Included in the cost of goods sold were goods costing RM3,400 taken by Ikram for
personal consumption. The market value of these goods was RM4,000. This has not
been recorded in the books of account.

2. Other incomes comprise of:

RM
Interest income from Maybank 25,000
Gain on disposal of delivery van 5,000
Rental income 47,000
77,000
3. Remuneration comprises of:
Ikram Normal Employees Disabled Employee
Salary 44,000 60,000 10,000
Commission - 14,000 3,500
Overtime - 9,500 -
EPF - 12,500 1,500

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Note: One of the normal employees is Ali, aged 61 years old, who were paid a monthly
salary of RM1,200.

4. Lease rental of a refrigerated van amounted to RM1,500 per month.

5. Repair and maintenance comprise of:

RM
Repairs of cake decoration room 500
Rewiring of the store for raw materials 2,000
Renovation of the baking room 1,900
4,400
6. Water and electricity
80% of the expenses were related to the business.

7. Entertainment expenses comprises of:

RM
Redemption of vouchers given for purchases made 2,600
Free gifts for purchases exceeding RM100 2,000
4,600
8. Legal fees comprise of:
RM
Legal fees in renewing business loan 3,000
Legal fees for income tax appeals 2,300
5,300

9. Donation comprises of:

RM
Donation in-kind to public library, the business elected section 34(6)(g) 2,000
Cash donation to Rumah Anak Yatim (approved institution) 2,000
4,000
10. Bad debts comprise of:
RM
Bad debts (trade debts) written off 2,300
Provision for general doubtful debt 2,400
Provision for specific doubtful debt 1,100
5,800
11. Fees comprise of:
RM
Entrance fees to trade association 600
Annual fees to trade association 2,100
Accounting fees 2,800
5,500
12. Zakat
RM
Business zakat 4,100

13. A delivery van was disposed of at RM 34,300 on 30 April 2021. The delivery van’s cash
price was RM90,000. The business acquired the delivery van under 4 years hire
purchase loan with CIMB; RM 30,000 deposit and first installment amounted to
RM1,500 was paid on 1 September 2018.

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14. Details of the fixed assets.

Asset Year Acquired Cost
(RM)
• Commercial Dough Mixer 2018 25,000
Bakery Deck Oven 2018 18,000
Countertop Sheeter – 15 units @ RM1,250 2021 18,750
each
Nissan NV350 Urvan 2021 125,000
Note: All of the above assets were purchased by cash.

15. The business’s total tax paid by Ikram via the Form CP500 tax instalment scheme for
the year of assessment 2021 is RM85,000.

16. The followings are relevant information of Ikram and his business for the year of
assessment 2021:

Ikram Bin Hassan

Full Name : Ikram Bin Hassan
I/C No. : 741112075279
Tax Reference No. : OG 01236541400

Business Information – Ikram Bin Hassan

Name of Business : Pastry Pro Enterprise
Business Code : 77700
Type of Business : Bakery
Business Premise : No.11, Jalan Wangsa Delima 10, 53300 Kuala Lumpur,
Wilayah Persekutuan
Website : www.pastry pro.com
Tax Agent No. : 000023455799
Employer Ref. No. : E 5432677210
Premise Tel. No. : 03-92834000
Premise Email : pastry pro @gmail.com
Bank and Acc. No. : CIMB – 551063003333

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Personal information of Ikram and his wife, Azin for the year assessment 2021

Ikram is married to Azin on 1 March 1998. Azin is a marketing manager with Zomac Berhad
in Cheras, Selangor. Her incomes from employment for the year 2021 are as in EA form
attached (Appendix 1). She contributes RM50 monthly to SOCSO.

In June 2021, she received dividend from Tenaga Nasional Malaysia Bhd (single tier)
amounted to RM15,000 and RM18,000 as royalty on translation of a marketing book at the
request of the Ministry of Education. She also received rental income from her terrace house
in Rawang, Selangor. Below is the information relating to the house which was rented out on
1 March 2021:

RM
Receipts:
Monthly rental 1,800
Advance rental- (Jan & Feb 2022 was received on 1 Dec 2021) 3,600

Expenses:
Annual Quit rent and Assessment 2,400
Plumbing Repairs 2,100
Fire Insurance per annum 1,440

Both Ikram and Azina are tax residents for YA 2021 and blessed with four children:

Name Date of birth Additional information

i. Almas 3 January Pursuing degree in Engineering at the University of
1999 Adelaide
ii. Alia 5 March 2001 Differently abled, pursuing Diploma in Accountancy in UiTM
Tapah, Perak. Registered with social welfare and holds the
OKU card.
iii Aqil 10 December Pursuing degree in Mathematics at the University of Perth
2002
iv Adni 3 June 2012 Attending Sekolah Kebangsaan Seksyen 18, Shah Alam

Ikram elected to claim for child relief.

Ikram being the only child, took care of his father who suffered brain stem stroke in February
2020. Ikram hired a registered nurse and paid RM2,700 monthly to take care of his father since
then.

In 2021, Ikram subscribed to The Star e-Paper package and paid a subscription fee of RM600.
He also subscribed to Unifi internet broadband RM150 per month. Ikram purchased two units
of 14-inch Asus Zen Book worth RM4,500 per unit, for both of his daughter, Alia and Adni on
2 January 2021.

Azin deposited RM200 and RM300 monthly in Alia and Adni’s SSPN account.
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Azin paid RM280 monthly for her life insurance premium.

REQUIRED:

1. Compute the tax payable in respect of Ikram and Azin for the year of assessment 2021

2. Compute the capital allowance and balancing charge/allowance if any for the year of
assessment 2021.

3. Complete the following sections of the 2021 Form e-B in respect of Ikram and Form e-BE
in respect of Azin:
a. Type of assessment.
b. Spouse Information
c. Statutory Income and Total Income.
d. Reliefs.
e.Tax Payable.
f. Individual Financial Information (Main business only).

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QUESTION 2

CREATING A VIDEO INFOGRAPHIC

Your task is to create a video infographic using the following scenario as your guide.

Encik Fahmi, is an IT administrator, currently working with VTAC Manufacturing Berhad, Kuala
Lumpur. He has been working with the company for almost 11 months now.

Encik Fahmi is aware that he needs to file tax returns. Currently, he has not register for tax as
he was uncertain on the process. He plans to visit the nearest Inland Revenue Board
Malaysia’s (IRBM/LHDN) branch to obtain detailed information on the application of tax
registration.

Required:

Design a video infographic for Encik Fahmi providing information on basic income tax filing.

Criteria of Your Video infographic:

Communicates your messages in a concise, eye-grabbing and easy to understand approach.

Your explanations must cover the followings:

- Self- assessment system for individual in Malaysia

- How to register as taxpayer for the first time.
- Documents that need to be keep as evidence

END OF QUESTION

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