CONFIDENTIAL

AC/DEC 2023/TAX267/TEST

UNIVERSITI TEKNOLOGI MARA

TEST

COURSE
:

TAXATION 1

COURSE CODE
:
TAX267

EXAMINATION
:
16 DECEMBER 2023

TIME
:
1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES

1.
This question paper consists of three (3)
questions.

2.
Answer ALL questions in the Answer Booklet. Start each answer on a
new page.

3.
Do not bring any material into the examination room unless permission is given by the
invigilator.

Please check to make sure that this examination pack consists

of:
4.

i)
the Question Paper
ii
)
one-page Appendix 1
 iii
)
an Answer Booklet - provided by the Faculty
ம்
5.
Answer ALL questions in
English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 5 printed

pages

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QUESTION 1
2
AC/DEC 2023/TAX267/TEST

Dr Hussain Jabal, a Bahraini cardiovascular surgeon, arrived in Malaysia on 23 July 2018 and
left Malaysia permanently on 31 May 2023. Details of his stay in Malaysia are as follows:

Periods of stay
Year

2018
Notes
23 July
31 December
2019
15 January
31 May
1

14 June
28 July
2
 2020
1 May 20
September -

15 August
-

10 December
2021
1
January
31 December
2022
2023
1 February -

31 May
Not in
Malaysia 3

Notes:

1.

2
.
He returned to Bahrain to resolve his children's school affairs from 1 January 2019 to 14
January 2019.
He travelled to Russia to participate in a heart symposium pertaining to his professional field from 1
June 2019 to 13 June 2019.

3. Left Malaysia permanently on 31 May 2023 at 10.30 pm.

Required:

a. Determine the tax residence status of Dr Hussain Jabal for the relevant years of
assessment 2018 until year of assessment 2023. Provide the relevant sections and reasons to
support your answers.
(12
marks)

b.
Briefly state any TWO (2) circumstances of temporary absence.
(3
marks)
(Total: 15 marks)

QUESTION 2

A.
Bintang Axia Sdn Bhd, a manufacturing company, prepares its financial statements annually,
with the accounting period ending on 31 December. In 2021, the company
bought a piece of land for the purpose of constructing a factory amounting
 RM240,000. The company constructed a factory in February 2021, with the following
costs:

RM

Architect's fee
35,500

Cost of clearing the land

40,000
Electrical wiring and fitting
50,000
Construction costs
500,000

Demolishing abandoned
bungalows
30,000
Interest on loan (construction of factory)
15,000

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AC/DEC 2023/TAX267/TEST

The construction of the building was completed on 15 December 2021. Nevertheless, the
building was exclusively utilized for production on 1 March 2022. Below is the
occupancy information for the building:

Factory Showroom
Meeting
room
Percentage (%)

The company also acquired the following

assets:
88.5
9
2.5

1.
Lexus Sedan ES 250 Premium (non-commercial vehicle) Cash price:
RM320,000
 2.

Required:
Deposit: RM100,000 (paid on 30 June 2021)
Monthly instalment: RM4,120
No. of instalment: 55 months (commenced on 5 July 2021)

However, due to non-commercial justification, the car was disposed of at a price of RM200,000
on 15 March 2023.

On 18 July 2022, the company purchased 11 units of air compressor machines at

a cost of RM1,950 each.

Compute the capital allowance, industrial building allowance, balancing allowance or

balancing charge (if any) for each asset of Bintang Axia Sdn Bhd for all relevant years of
assessment up to year of assessment 2023. Round off your answers to the nearest RM.
(17 marks)

B.
Gigantic Agro Sdn Bhd has been involved in cultivating vegetables. The
company prepares its account to 31 July annually. In 2019, the company bought a
piece of land in Bentong, Pahang and used for plantation purposes.

Date
1/9/2019
Expenditure Cost of land
28/12/2019 Clearing of land
1/8/2020
Cost of planting
1/10/2021
15/10/2021
Construction of living quarters for
workers Construction of roads
RM 400,000
85,800
130,300
55,700
38,000

On 31 August 2022, the company sold the entire of plantation to Titanic Agro Sdn Bhd (make up
its accounts to 30 June annually) for RM2,000,000.
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AC/DEC 2023/TAX267/TEST

Required:

Calculate the agriculture allowances/(charges) for Gigantic Agro Sdn Bhd and Titanic Agro Sdn
Bhd for the relevant years of assessment up to the year of assessment 2023. Assuming that
Gigantic Agro Sdn Bhd made an election to spread back the agriculture charges. Round off
your answers to the nearest RM.
(8
marks)
(Total: 25
marks)

QUESTION 3

Pasha and Qistina established a partnership named Klinik Gumbira since 2020. Qistina ceased
to be a partner on 31 August 2023 and Razlan joined the partnership on 1 September 2023.
The provisional adjusted income for the year of assessment was RM196,000. The profit-
sharing agreements up to 31 August 2023:

Pasha
RM

Capital contribution
80,000
Partners' salaries per annum
42,000
Interest on capital per annum
4,000
Profit-sharing
ratio
0.6

The profit-sharing agreements on 1 September 2023 and onwards:

Pasha
RM
Capital
contribution
90,000
Partners' salaries per
annum
48,000
Interest on capital per annum
4,500
 0.7
Qistina
RM

60,000
36,000
3,000
0.4

Razlan
RM
70,000
42,000
3,500
0.3
Profit-sharing
ratio

Additional information:

1
.
On 30 April 2023, the partnership made an approved donation of RM20,000 to an
approved organization.
2. During the year, Qistina received dividend income (single-tier) amounted to RM5,000.
Meanwhile, Razlan received gross rental income RM18,000 (excluding allowable
expenses of RM2,000).
3. Capital allowance and balancing allowance were RM10,000 and RM3,500 respectively.

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Required:

a.
 b.
5
AC/DEC 2023/TAX267/TEST

Determine the divisible income/(loss) of the partnership for the year of assessment 2023. Round
off your answers to the nearest RM.
(4
marks)

Calculate the total income for Pasha and Razlan for the year of assessment 2023.
Round off your answers to the nearest RM.
(6 marks) (Total: 10
marks) (TOTAL: 50
MARKS)

END OF QUESTION PAPER

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Rates of capital allowances

AC/DEC 2023/TAX267/TEST
APPENDIX 1
(1)

Motor
Vehicles
Heavy Plant
& Machinery
General
Plant &
Computers
Others
Building
& Software
Machinery
Initial
20%
20%
20%
20%
20%
10%
allowance

Annual
20%
20%
14%
20%
10%
3%
allowance
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