CONFIDENTIAL AC/JAN 2022/TAX267/TEST

UNIVERSITI TEKNOLOGI MARA

TEST
SUGGESTED SOLUTION

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 CONFIDENTIAL AC/JAN 2022/TAX267/TEST

QUESTION 1
A.

YA Basis period No of Status Section Reasons

days
2016 1/8/2016 – 14/10/2016 75 R√ 7 (1)(b)√ Stay in Malaysia less than 182
15/10/2016 – 30/12/2016 77(TA) days√ and the period is linked
31/12/2016 1 to√ a period of 182 days or
76 more consecutively in YA2017
including temporary absence
(TA) √
2017 1/1/2017 – 28/2/2017 59 NR√
1/3/2017 – 31/7/2017 153(TA)
1/8/2017 – 31/8/2017 31
90
2018 6/1/2018 – 25/7/2018 201 R√ 7 (1)(a)√ Stay in Malaysia at least 182
days√

2019 10/3/2019 – 30/4/2019 52 R√ 7 (1)(c)√ Stay in Malaysia for at least 90

18/7/2019 – 31/8/2019 45 days√ and 3/4 immediate
97 preceding years were
resident√ (YA2018, YA2016)
or in Malaysia for 90 days or
more (YA2017) √
2020 31/5/2020 – 28/8/2020 90 R√ 7 (1)(c)√ Stay in Malaysia for at least 90
days√ and 3/4 immediate
preceding years were
resident√ (YA2019, YA2018,
YA2016) or in Malaysia for 90
days or more√
2021 1/1/2021 – 16/4/2021 106 R√ 7 (1)(c)√ Stay in Malaysia for at least 90
17/4/2021 – 1/5/2021 - days√ and 3/4 immediate
2/5/2021 – 30/6/2021 60 preceding years were
166 resident√ (YA2019,
YA2018,YA2016) or in
Malaysia for 90 days or more√
(24√ X ½ mark = 12 marks)
B.
Leaving Malaysia for umrah not exceeding 14 days in the aggregate√, thus regarded as
temporary absence√ to form the consecutive 182 days. The 14 days umrah need not be
consecutive and can relate to any one of the two YAs√.
(3√ X 1 mark = 3 marks)
Total: 15 marks

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QUESTION 2
A.
a.

Factory building

Expenditure RM
Legal fee (RM4,000 was related to land) 11,000√
Architect’s fee 21,000√
Approval of plan – local authority 5,000√
Construction cost 250,000√
Wiring and plumbing 65,000√
QBE 352,000

10% rule

Non-IB = 10% (office & showroom)

IB = 90%

Since non-IB not more than 10%, the whole building qualifies for QBE√.

RM RM
YA2020 QBE 352,000
IA – 10%√ (35,200)
AA – 3% (10,560) (45,760)
RE 306,240
YA2021 AA – 3% (10,560) √ (10,560)
RE 295,680

Machine A

COPS

RM
Cost of Machine A 96,500
Cost of preparing the site to install Machine A (COPS) 75,600
Aggregate cost (AC) 172,100

75% rule

COPS/AC = 75,600/172,100 = 44% which is less than 75% of AC√. Thus, COPS would not
be treated as QBE√. Machine A would be treated as QPE.

RM RM
YA2020 QPE 96,500 √
IA – 20%√ (19,300)
AA – 14%√ (13,510) (32,810)
RE 63,690
YA2021 AA – 14% (13,510) √ (13,510)
RE 50,180

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Honda Civic

HP price: 115,000
HP/ month: 115,000 / 46 = 2,500 (without interest)

RM RM
YA2020 QPE
Deposit√ 20,000
Instalment (2,500 x 8) √ 20,000
40,000
IA – 20%√ (8,000)
AA – 20%√ (8,000) (16,000)
RE 24,000
Instalment (2,500 x 12) 30,000√
54,000
YA2021 IA – (20% x 30,000) (6,000) √
AA – (20% x 70,000) (14,000) (20,000)
RE 34,000

Air conditioners

Small value asset = 3 units x 1,800 = 5,400 (Aggregate SVA = 20,000)

RM RM
YA2021 QPE 5,400√
CA – 100%√ (5.400)
RE Nil

(22√ X ½ mark = 11 marks)

b.
All capital allowances would be clawed back by way of balancing charge in the year of disposal
(BC = CA previously claimed) √.
(1√ X 1 mark = 1 mark)

B.

Organic Sayuran Sdn Bhd

Clearing land Planting Construction Construction

of workers’ of warehouse
housing
RM RM RM RM
QAE 45,000 85,000 50,000 25,000
Rate 50% 50% 20% 10%
YA 2020√ AA 22,500√ 42,500√ - -
YA 2021 AA 22,500 x 42,500 x 10,000 x 2,500 x
349/365 = 349/365 = 349/365 = 349/365 =
21,514√√ 40,637√√ 9,562√√ 2,390√√

YA 2021 AC√ (44,014) √ (83,137) (9,562) √ (2,390) √

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No agriculture allowances were given for cost of land. √

(16 √ x ½ mark = 8 marks)
Total: 20 marks

QUESTION 3

a. Computation of divisible income for Aina, Abdul and Budin for the YA2021

RM RM
Net profit as per SOPL 24,750√

Add: Non-allowable expenses

Depreciation 18,500√
Renovation of business premise 8,350√
Donation 5,000√ 31,850

Add: Partners’ private expenses

Salary
Aina (56,000 x 7/12) 32,667√
Abdul (56,000 x 7/12 = 32,667) + (40,000 x 5/12 = 16,667) 49,334√
Budin (32,500 x 5/12 = 13,542) 13,542√ 95,543
Interest on capital
Aina 1,050√
Abdul (1,050 + (90,000 x 2% x 5/12 = 750) 1,800√
Budin (70,000 x 2% x 5/12 = 583) 583√ 3,433
Entertainment allowance
Aina (300 x 7m) 2,100√
Abdul (450 x 7m = 3,150) + (500 x 5m = 2,500) 5,650√
Budin (300 x 5m) 1,500√ 9,250
Aina’s bungalow renovation 4,650√
Provisional adjusted income 169,476

Less: Partners’ private expenses

Salary (95,543)
Interest on capital (3,433)
Entertainment allowance (9,250)
Aina’s bungalow renovation (4,650)

Divisible income 56,600

(14√ x ½ mark = 7 marks)

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b. Computation of total income for Aina, Abdul and Budin for the YA2020

RM RM RM
Divisible income: 56,600 Aina Abdul Budin
(1/1 – 31/7/2021) = 56,600 x 7/12 = 33,017 (4:6) √ 13,207√ 19,810√ -
(1/8 – 31/12/2021) = 55,600 x 5/12 = 23,583 (65:35) √ - 15,329√ 8,254√
13,207 35,139 8,254

Add: benefits to partners

Salary 32,667 49,334 13,542
Interest on capital 1,050 1,800 583
Entertainment allowance 2,100 5,650 1,500
Aina’s bungalow renovation 4,650 - -
Adjusted business income 53,674 91,923 23,879
Less: Capital allowance (65:35) -√ (27,820)√ (14,980)√
Statutory business income from partnership √ 53,674 64,103 8,899
Add: Other income
Dividend (exempted) Nil√ - -
Aggregate Income 53,674 8,899
Less: Approved donation (restricted to 10% of AI) √ = 5,000
Aina (2,000 vs 5,367) (2,000)√
Abdul (3,000 vs 6,410) (3,000)√ -
Budin’s donation: 5,000 vs (10% x 8,899 = 889) - - (889)√
Total Income √ 51,674 61,103 8,010
(16√ x ½ mark = 8 marks)
Total: 15 marks
(TOTAL: 50 MARKS)

END OF SOLUTION