KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

ACADEMIC YEAR 2021/2022

BACHELOR OF ACCOUNTING (HONOURS)

BBFT2013 TAXATION

COURSEWORK TEST 1

DATE: 16 AUGUST 2021, MONDAY TIME: 06.30PM – 08.00PM

(1 Hour 30 Minutes)

Instructions to Candidates:

Answer ALL TWO (2) questions.

 This is an open book online assessment. You MUST answer the assessment questions on your own
without any assistance from other persons.

 You must submit your answers within the following time frame allowed for this online assessment:
o The deadline for the submission of your answers is half an hour from the end time of this
online assessment.

 Penalty as below WILL BE IMPOSED on students who submit their answers late as follows:
o The final marks of this online assessment will be reduced by 10 marks for answer scripts that
are submitted within 30 minutes after the deadline for the submission of answers for this
online assessment.
o The final marks of this online assessment will be downgraded to zero (0) mark for any answer
scripts that are submitted after one hour from the end time of this online assessment.

All workings that support the answer should be shown.

Marks will be awarded for clarity in presentation and logical arguments.

Tax rates and personal allowances are printed herewith.

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BBFT2013 TAXATION

The following rates and allowances are to be used for all the questions in this paper unless
specified otherwise in the relevant question(s):

Rates of income tax

(a) (i) Resident company (paid-up capital not exceeding RM2.5 million and gross business
income not more than RM50 million)
Chargeable Income: First RM600,000 17%
Remainder 24%
(ii) Resident company (paid-up capital exceeding RM2.5 million or gross business income
more than RM50 million) 24%
(b) Non-resident company 24%
(c) Non-resident individual 30%
(d) Resident individual

Chargeable Income Calculations (RM) Rate % Tax (RM)

0 - 5,000 On the First 5,000 0 0
On the First 5,000 0
5,001 - 20,000 Next 15,000 1 150
On the First 20,000 150
20,001 - 35,000 Next 15,000 3 450
On the First 35,000 600
35,001 - 50,000 Next 15,000 8 1,200
On the First 50,000 1,800
50,001 - 70,000 Next 20,000 13 2,600
On the First 70,000 4,400
70,001 - 100,000 Next 30,000 21 6,300
On the First 100,000 10,700
100,001 - 250,000 Next 150,000 24 36,000
On the First 250,000 46,700
250,001 - 400,000 Next 150,000 24.5 36,750
On the First 400,000 83,450
400,001 - 600,000 Next 200,000 25 50,000
On the First 600,000 133,450
600,001 - 1,000,000 Next 400,000 26 104,000
On the First 1,000,000 237,450
1,000,001 - 2,000,000 Next 1,000,000 28 280,000
On the First 2,000,000 517,450
Exceeding 2,000,000 Next ringgit 30 ….........

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BBFT2013 TAXATION

Motorcars and related benefits – value assessable extracted from Public Ruling No. 11/2019 issued
by the Inland Revenue Board.
Cost of car (when new) Annual value of BIK Fuel per annum
RM RM RM
Up to - 50,000 1,200 600
50,001 - 75,000 2,400 900
75,001 - 100,000 3,600 1,200
100,001 - 150,000 5,000 1,500
150,001 - 200,000 7,000 1,800
200,001 - 250,000 9,000 2,100
250,001 - 350,000 15,000 2,400
350,001 - 500,000 21,250 2,700
500,001 and above 25,000 3,000
When the car provided is more than five years old the taxable car benefit is halved but the value of fuel
provided remains unchanged.

Household furnishings, appliances, etc: RM

(i) Semi-furnished with furniture in the lounge, dining room, or bedroom 840 per annum
(RM70 per month)
(ii) Semi-furnished with furniture as in (i) above plus, one or more of air 1,680 per annum
conditioner, curtains and carpets (RM140 per month)
(iii) Fully-furnished with benefits as in (i) and (ii) above plus, one or more 3,360 per annum
of kitchen equipment, crockery, utensils and appliances (RM280 per month)

Other benefits RM
Driver 7,200 per annum
Gardener 3,600 per annum
Domestic servant 4,800 per annum

Personal Reliefs RM
Self 9,000
Self – disabled 6,000 (additional)
Spouse 4,000
Spouse – disabled 5,000 (additional)
Children
Normal child below 18 years old 2,000 each
Normal / disabled child 18 years old and above, and in higher education:
- Overseas universities or similar establishments 8,000 each
- Local universities, colleges or similar establishments 8,000 each
Disabled child 6,000 each
Medical expenses incurred for parent(s) 8,000 (maximum)
Medical expenses on serious disease, fertility treatment and vaccination 8,000 (maximum)
Medical examination 1,000 (maximum)
Basic supporting equipment 6,000 (maximum)
Fees for acquiring skills and qualification 7,000 (maximum)
Contributions to approved fund or scheme 4,000 (maximum)
Takaful / life insurance premium (taxpayer: private sector) 3,000 (maximum)
Takaful / life insurance premium (taxpayer: public sector) 7,000 (maximum)

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BBFT2013 TAXATION

Private retirement scheme, deferred annuity premium 3,000 (maximum)

Education and medical insurance premiums 3,000 (maximum)
Lifestyle relief 2,500 (maximum)
Child care fees for a child aged 6 years and below 3,000 (maximum)
Purchase of breastfeeding equipment 1,000 (maximum)
Deposit into the Skim Simpanan Pendidikan Nasional (SSPN) 8,000 (maximum)
Contribution to SOCSO 250 (maximum)
Domestic travelling expenses - accommodation & entrance fee 1,000 (maximum)
Special lifestyle relief - personal computer, smartphone or tablet 2,500 (maximum)
Additional lifestyle relief - sports 500 (maximum)

Personal income tax rebates RM

Individual rebate: chargeable income does not exceed RM35,000 - self 400
- spouse 400
Zakat and fitrah Amount paid by
taxpayer

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BBFT2013 TAXATION

For this paper, assume that the year ending 31 December 2021 has elapsed where relevant.

Answer ALL TWO (2) questions.

Question 1

(a) Mr. Bryan, a Canadian citizen, was employed as a senior IT specialist by Great Power Sdn.
Bhd. His periods of stay in Malaysia were as follows:

Year Period of stay Place No. of days

2013 01/03/2013 – 31/07/2013 In Malaysia 153
01/12/2013 – 31/12/2013 In Malaysia 31

2014 01/06/2014 – 31/08/2014 In Malaysia 92

2015 01/03/2015 – 31/10/2015 In Malaysia 245

2016 01/09/2016 – 20/12/2016 In Malaysia 111

2017 01/01/2017 – 31/03/2017 In Malaysia 90

2018 01/06/2018 – 30/7/2018 In Malaysia 60

2019 01/12/2019 – 20/12/2019 In Malaysia 20

21/12/2019 – 31/12/2019 In Korea 11

From 21/12/2019 – 02/01/2020, Mr. Bryan was sent by his employer to Korea to attend a
conference. He was back to Malaysia on 03/01/2020 and stayed in Malaysia to continue his
work until 30/09/2020. Thereafter, he left Malaysia permanently on 01/10/2020.

Required:

Determine Mr. Bryan’s residence status for the years of assessment 2013 to 2020, stating the
conditions and relevant provision of the Income Tax Act 1967 to support your answer.
(24 marks)

(b) Mr. Smith, a UK citizen, is a renowned engineering lecturer employed by a university in

London. He was required by the university to come to Malaysia to conduct a short course in a
university in Kuala Lumpur. He arrived in Malaysia for the first time in September 2021 to
carry out his duty. In 2021, he stayed in Malaysia for a total of 68 days including 10 days
holiday. His salaries were paid in the UK while he exercised his duty in Malaysia. He returned
to the UK after 68 days in Malaysia. He is not expected to come back to Malaysia for the next
two years.

Required:

Explain with reasons whether Mr. Smith is subject to Malaysian tax in respect of his work in
Malaysia. (6 marks)
[Total: 30 marks]

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BBFT2013 TAXATION

Question 2

Vanessa commenced employment as an accountant with Zitronix Sdn. Bhd. on 1 April 2016. She is a
single mother with 2 children. She worked with her employer until 31 December 2021 before she
decided to retire to take care of her old-aged mother. At the age of 47, she received a gratuity of
RM10,000 from her employer on 31 December 2021. She is a Malaysian tax resident for the year of
assessment 2021. Her remuneration details for the year 2021 are as follows:

1. Salary and bonus

RM
Salary 42,000
Bonus 4,000

2. Medical and dental benefits of RM3,000.

3. Childcare benefit of RM1,000 for her youngest son, Adrian, who is 10 years old.

4. She received a gift of computer with a market value of RM2,500 from her employer to enable
her to work from home.

5. She also received RM450 from her employer for the subscription to the Malaysian Institute of
Accountants.

Her other relevant information on income and expenditures for the year 2021 are as follows:

1. Single-tier dividend of RM1,000 received from a tax resident Malaysian company.

2. Vanessa owns a bungalow in Petaling Jaya which she rented out for the whole year in 2021 for
RM2,000 per month. She incurred RM2,000 on interest on mortgage, assessment & quit rent
of RM800 and fire insurance of RM1,500. She also spent RM1,000 on electrical and plumbing
repairs and RM5,000 on extending the kitchen.

3. Vanessa also had an overseas business income of RM50,000 which was remitted into Malaysia
during the year 2021.

4. She spent medical expenses of RM9,000 for her mother.

5. She purchased a new smartphone and tablet costing RM6,000 for her elder son who was
studying a degree course in the Universiti Sains Malaysia.

6. She contributed RM5,200 for the Employees Provident Fund during the year 2020.

Required:

(a) Compute the income tax payable of Vanessa for the year of assessment 2021. All items stated
in the question are to be included in the computation. Where the item is not taxable or
deductible, indicate ‘NIL’ in the computation. (15 marks)

(b) Explain the tax implications in respect of the Malaysian derived income if Vanessa is a non-
Malaysian tax resident for the year of assessment 2021. (5 marks)
[Total: 20 marks]

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This question paper consists of 2 questions on 6 printed pages.