CONFIDENTIAL AC/JULY 2021/TAX267/TEST

UNIVERSITI TEKNOLOGI MARA

TEST
SUGGESTED SOLUTION

1
 CONFIDENTIAL AC/JULY 2021/TAX267/TEST

QUESTION 1
A

YA Basis period No of Status Section Reasons

days
2015 15/6/2015 – 15/11/2015 154 R√ 7 (1)(a)√ Stay in Malaysia at least 182
16/11/2015 – 25/12/2015 40 days√
26/12/2015 – 31/12/2015 -
194
2016 1/1/2016 – 11/1/2016 - R√ 7 (1)(a)√ Stay in Malaysia at least 182
12/1/2016 -25/8/2016 227 days√
26/8/2016 -5/9/2016 11
(TA)
6/9/2016 – 31/12/2016 117
344
2017 1/1/2017 – 27/2/2017 58 R√ 7 (1)(b)√ Stay in Malaysia less than 182
28/2/2017 – 5/3/2017 6 (TA) days√ and the period is linked
58 by√ to a period of 182 days or
more consecutively in YA2016
including temporary absence
(TA) √
2018 3/3/2018 – 31/5/2018 90 R√ 7 (1)(c)√ Stay in Malaysia for at least 90
days√ and 3/4 immediate
preceding years are resident√
(YA2017, YA2016,YA2015) or
in Malaysia for 90 days or
more
2019 - 0 R√ 7 (1)(d)√ In Malaysia less than 182 days
(no need to be in Malaysia)√,
resident in 3 immediate
preceding years√ (YA2018,
YA2017, YA2016) and resident
in the following year
(YA2020)√
2020 1/1/2020 – 30/4/2020 121 R√ 7 (1)(c)√ Stay in Malaysia for at least 90
1/5/2020 – 5/5/2020 5 (TA) days√ and 3/4 immediate
121 preceding years are resident√
(YA2018, YA2017,YA2016) or
in Malaysia for 90 days or
more
(24√ X ½ mark = 12 marks)
B

According to Section 7(IB)√ Soraya Ahmad is deemed a tax resident in Malaysia√√ for
YA2020, YA2021 and YA2022 as she is Malaysian citizen√. Besides, she is working with the
Ministry of Foreign Affairs of Malaysia (government servant) √ and exercising her employment
outside Malaysia as she is required by her employer to work in Taiwan√.
(6√ X ½ mark = 3marks)
Total: 15 marks

2
 CONFIDENTIAL AC/JULY 2021/TAX267/TEST

QUESTION 2
A (a)

Factory building
RM RM
YA2019 √ QBE 1,500,000 √
IA – 10%√ (150,000)
AA – 3%√ (45,000) (195,000)
RE 1,305,000
YA2020 AA – 3%√ (45,000)
RE 1,260,000

Warehouse building (para 37C)

RM RM
YA2019 QBE 500,000 √
IA – Nil√ -
AA – 10%√ (50,000) (50,000)
RE 450,000
YA2020 AA – 10%√ (50,000)
RE 400,000

Childcare facilities (para 42A(2))

RM
YA2020 QBE (600,000√+115,000√) 715,000
IA – Nil√ -
AA – 10%√ (71,500) (71,500)
RE 643,500

Heavy machinery

Heavy machinery RM850,000

Cutting and levelling the land RM185,000
Aggregate Cost RM1,035,000 √

75% Rule:
185,000 / 1,035,000 = 17.9% √

Since cutting and levelling the land is less than 75% √ from the Aggregate Cost, it does not
qualify as qualifying building expenditure √

Thus, heavy machinery qualifies for qualifying plant expenditures and entitle for capital
allowances √.

RM RM
YA2020 QPE 850,000
IA – 20%√ (170,000)
AA – 20%√ (170,000) (340,000)
RE 510,000

(20√ X ½ mark = 10 marks)

3
 CONFIDENTIAL AC/JULY 2021/TAX267/TEST

A (b)

Option 1
The warehouse building would be eligible for industrial building allowance√ as the warehouse
is within the same curtilage of the factory √

Option 2
The warehouse building would not be eligible for industrial building allowances√ as the
building was not within the same curtilage of the factory building. √
(4√ X ½ mark = 2 marks)

Kupi Terbang Sdn Bhd

Clearing land Planting Construction of Construction

farm workers’ of estate office
accommodation
RM RM RM RM
QAE 50,000 200,000 60,000 70,000
Rate 50% 50% 20% 10%
YA 2016 √ - AA 25,000 √ 100,000 √ - -
YA 2017 - AA 25,000 100,000 12,000 √ 7,000 √
YA 2018 - AA - - 12,000 7,000
- AC √ (Nil) √
(Grant)
YA 2019 - AA - - 12,000 x 6/12 7,000
= 6,000 √

- AC √ (30,000) √
(Disposed
within 5 years)
YA 2020 - AA - - - 7,000 x 6/12
= 3,500 √

- AC √ (50,000) √ (200,000) √ - (24,500) √

(without
election)

No agriculture allowances were given for cost of land. √

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

4
 CONFIDENTIAL AC/JULY 2021/TAX267/TEST

QUESTION 3

(a) Computation of divisible income for Salleh, Ali and Azmi for the YA2020

RM RM
Provisional adjusted income 156,050√
Less: benefits to partners:
Salary
Salleh (RM2,000 x 11 months) 22,000√
Ali (RM2,000 x 12 months) 24,000√
Azmi (RM2,000 x 9 months) 18,000√
(64,000)
Interest on capital
Salleh (RM6,000 x 10% x 11/12 months) 550√
Ali (RM6,000 x 10% x 12/12 months) 600√
Azmi (RM12,000 x 10% x 9/12 months) 900√
(2,050)
Divisible income√ 90,000
(8√ x ½ mark = 4 marks)

(b) Computation of total income for Salleh, Ali and Azmi for the YA2020

RM RM RM
Divisible income: Salleh Ali Azmi
(1/1 – 31/3/2020) RM90k x 3/12 = RM22,500 (1:1) √ 11,250√ 11,250√ -
(1/4 – 30/11/2020) RM90k x 8/12 = RM60,000 (1:1:2) √ 15,000√ 15,000√ 30,000√
(1/12 – 31/12/2020) RM90k x 1/12 = RM7,500 (1:2) √ - 2,500√ 5,000√
26,250 28,750 35,000

Add: benefits to partners

Salary 22,000 24,000 18,000
Interest on capital 550 600 900
Adjusted business income 48,800 53,350 53,900
Add: Balancing charge (1:2) - 1,000√ 2,000√
Less: Capital allowance (1:2) -√ (3,000) √ (6,000) √
Statutory business income from partnership √ 48,800 51,350 49,900
Add: Other income
Interest income - Nil√ -
Rental income 10,000√ - -
Aggregate Income√ 58,800 51,350 49,900
Less: Approved donation (restricted to 10% of AI)
Azmi: 3,000 vs (10% x 49,900 = 4,990) √ - - (3,000) √
Total Income√ 58,800 51,350 46,900

(22√ x ½ mark = 11 marks)

Total: 15 marks
(TOTAL: 50 MARKS)

END OF SOLUTION