CONFIDENTIAL AC/JAN 2023/TAX267/TEST

UNIVERSITI TEKNOLOGI MARA

TEST
SUGGESTED SOLUTION

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CONFIDENTIAL AC/JAN 2023/TAX267/TEST

QUESTION 1
YA Period of stay No. of days Status/ Reason
Section
2017 1/12/2017 – 31/12/2017 31 NR√

2018 13/12/2018 – 25/12/2018 13 R Stay in Malaysia less than

26/12/2018 – 31/12/2018 (6) TA s 7(1)(b)√ 182 days and the period
13 is linked to √ YA 2019 for
182 days consecutively
including TA√
2019 1/1/2019 – 3/1/2019 (3) TA R Stay in Malaysia at least
4/1/2019 – 26/7/2019 204 s 7(1)(a)√ 182 days√
204
2020 1/1/2020 – 30/3/2020 90 R Stay in Malaysia at least
1/7/2020 – 15/11/2020 138 s 7(1)(a)√ 182 days√
228
2021 1/5/2021 – 10/6/2021 41 R Resident in 3 immediate
41 s 7(1)(d)√ preceding YAs (2020,
2019 & 2018) √ and
resident for immediate
following YA (2022) √
2022 15/04/2022 – 17/7/2022 94 R Stay in Malaysia for at
s 7(1)(c)√ least 90 days √ and 3 out
of 4 immediate preceding
years √ (YA 2021, 2020,
2019) either resident or in
Malaysia for at least 90
days or more √
(15√ x 1 mark = 15 marks)

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 CONFIDENTIAL AC/JAN 2023/TAX267/TEST

QUESTION 2
A.

Factory building

Expenditure RM
Land Nil√
Legal fee – land Nil√
Legal fee – construction of factory 13,000√
Stamp duty – land Nil√
Demolishing an old factory Nil√
Architect’s fee 22,000√
Approval of plan – local authority 5,000√
Construction cost 340,000√
Total cost 380,000

10% rule

Non-IB = 6% + 5% = 11% (office & showroom)

IB = 89%

Since non-IB (11%) is more than 10%√ of total area, the qualifying portion (factory) which
qualifies for IBA is 380,000 x 89% = 338,200√.

YA RM
2020 QBE 338,200
-) IA – 10√ (33,820)
-) AA – 3%√ (10,146)
RE 294,234
2021 -) AA – 3% (10,146)√
RE 284,088
2022 -) AA – 3% (10,146)
RE 273,942

BMW X1

Cost > 150,000, thus QE 50,000

HP loan = 220,000 – 80,000 = 140,000

HP/ month = 140,000 / 56 = 2,500 (without interest)√√

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 CONFIDENTIAL AC/JAN 2023/TAX267/TEST

YA QE
RM RM
2020 Deposit 80,000√
Instalment (2,500 x 1) √ 2,500
QE (restricted to) 50,000√ 50,000

-) IA – 20%√ (10,000)
-) AA – 20%√ (10,000)
RE 30,000
Instalment (2,500 x 12 = 30,000)
restricted to Nil√
30,000
2021 -) AA (20% x 50,000) (10,000)√
RE 20,000
2022 Instalment (2,500 x 12 = 30,000)
restricted to Nil√
20,000
-) AA (20% x 50,000) (10,000)√
RE 10,000

Industrial shredder machine

YA RM
2021 QPE 36,000√
-) IA – 20%√ (7,200)
-) IA – 14%√ (5.040)
RE 23,760
2022 Disposal value 22,000√
Balancing allowance√ 1,760
Since asset was disposed within 2 years from acquisition date√, all capital allowance will be
withdrawn by way of balancing charge√ amounted to 12,240.

Nordic solid wood dining table

YA RM
2022 QPE (Para 2A,MV) 3,550√
-) IA – 20% Nil√
-) IA – 10%√ (355)
RE 3,195

(34√ X ½ mark = 17 marks)

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 CONFIDENTIAL AC/JAN 2023/TAX267/TEST

B.

Clearing of land Planting Estate office

RM RM RM
YA QAE 155,000 270,000 60,000
Rate 50% 50% 10%
2020√ AA 77,500√ - -
2021 AA 77,500 135,000√ -
AC (grant)√ - (Nil)√ -
2022 AA√ - 50% x 270k x 6,000√
219/365
= 81,000√√
AC (disposal)√ (155,000)/2 = (216,000)/2 = -√
(77,500) for each (108,000) for
YA 2020 – each YA 2021 –
YA 2021√√ YA 2022√√

The cost of land is not qualified as QAE√

(16√ x ½ mark = 8 marks)
Total: 25 marks

QUESTION 3

a. Computation of divisible income for the YA 2022

RM RM
Provisional adjusted income/(loss) 190,553√

Less: Benefits to partners

Salary
Adam (4,500 x 12) 54,000
Maxim (3,000 x 7) 21,000
Lea (1,500 x 12) 18,000
Kalsom (3,500 x 5) 17,500 (110,500)√√
Interest on capital
Adam (80,000 x 5% x 7/12) + (90,000 x 5% x 5/12) 4,208
Maxim (30,000 x 5% x 7/12) 875
Lea (40,000 x 5% x 12/12) 2,000
Kalsom (60,000 x 5% x 5/12) 1,250 (8,333)√√
Car maintenance: Adam (200 x 12) (2,400)√
Meal allowance: Kalsom (100 x 5) (500)√

Divisible income√ 68,820

(8√ x ½ mark = 4 marks)

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 CONFIDENTIAL AC/JAN 2023/TAX267/TEST

b. Computation of total income for Adam, Maxim, Lea and Kalsom for the YA 2022

Adam Maxim Lea Kalsom

RM RM RM RM
Divisible income: 68,820
(1/1 – 31/7/2021) = 68,820 x 7/12 = 40,145 20,073 10,036 10,036 -
(2:1:1)√
(1/8 – 31/12/2021) = 68,820 x 5/12 = 28,675 17,205 - 2,867 8,603
(60:10:30)√
37,278 10,036 12,903 8,603

Add: Benefits to partners

Salary 54,000 21,000 18,000 17,500
Interest on capital 4,208 875 2,000 1,250
Car maintenance 2,400 - - -
Meal allowance - - - 500
Adjusted business income 97,886 31,911 32,903 27,853
Less: Capital allowance (60:10:30) (10,200)√ -√ (1,700)√ (5,100)√
Statutory business income from partnership√ 87,686 31,911 31,203 22,753
Statutory business income from sole proprietor - - 10,000√ -
Add: Other income
Rental - - - 12,000√
Aggregate income√ 87,686 31,911 41,203 34,753
Less: Approved donation 18,000 -
(restricted to 10% of AI)√
Adam (9,000 vs 8,769) (8,769)√
Maxim (4,500 vs 3,191) OF (3,191)
Lea (4,500 vs 4,120) (4,120)
Total income 78,917 28,720 37,083 34,753
(12√ x ½ mark = 6 marks)
Total: 10 marks
(TOTAL: 50 MARKS)

END OF SOLUTION