LABUAN INTERNATIONAL CAMPUS

GB32103
MALAYSIAN TAXATION
Semester 2, 2020/2021
INDIVIDUAL ASSESSMENT: Case Study

Prepared by:

Name Matric No. Programme

Submitted to:
MDM NURJEEHAN BINTI AYUB

Date of Submission:
3th JULY 2021
CASE 1

Tax payable for Wirota and Maria (under separate assessment) for the YA 2019.

a) Wirota
Business income Book Shop Restaurant Overseas
business
RM RM RM RM RM RM
Adjusted income/loss 190,000 (18,000) 100,000
Less:
Capital allowances (15,000) (10,000) (16,000)
Capital allowances (5,000)
brought forward
Balancing charge (5,000)
(20,000)
Statutory income 175,000 (38,000) 84,000
(-) Losses brought (15,000)
forward
160,000 (38,000) 84,000
Adjusted statutory
RM206,000
income

Chargeable income for Wirota

RM RM
Statutory business income 206,000
Employment
Bonus 12,000
Compensation for loss of employment 60,000
Statutory income from employment 72,000
Miscellaneous income:
Dividend from Singapore (8,500 x 15%) 7,225
Dividend from Nestle Bhd. 7,000
Interest from KBI Ltd. 8,100
 22,325
Others
Rental income 96,000
(-) Interest on mortgage (34,000)
Fire insurance (2,600)
Assessment and quit rent (1,400)
Electrical and plumbing repairs (5,200)
Extending the kitchen (40,000)
12,800
Royalties 25,000
Interest received from bank 7,000
32,000
Aggregate income 159,725
(-) Donation (5,000)
Total aggregate income 154,725
(-) Personal relief
Self-relief 9,000
Disabled wife 3,500
Children: First 8,000
Second 8,000
Third 2,000
SSPN 6,000
Life insurance premium 2,200
Lifestyle relief 1,700
SOCSO 250
Parent 1,500 (42,150)
Chargeable income 112,575
Tax payable for Wirota
RM
The first 100,000 10,900
The balance RM101,675 x 24% 24,402
Tax payable 35,302

b) Chargeable income for Maria

Tax payable for Maria

RM
The first 50,000 1,800
The balance RM4,000 x 14% 560
Tax payable 2,360
CASE 2

Compute the capital allowances, balancing allowance/charge in respect of the relevant

Computation of heavy machinery capital allowance for YA 2020.

RM RM
Deposit 200,000
Full payment 800,000
1,000,000
Less:
IA (20% x RM1,000,000) (200,000)
AA (20% x RM1,000,000) (200,000) (400,000)
Residual expenditure 600,000

Computation of forklift capital allowance for YA 2020

RM RM
Qualifying expenditure (QE) 110,000
Down payment 20,000
Total instalment payments 45,580 65,580
Less:
(20% x RM65,580) (13,116)
(14% x RM65,580) (9,181) (22,297)
Residual expenditure 22,123

Computation of motor vehicle capital allowance for YA 2020

RM RM
Full payment 86,000
Less:
(20% x RM86,000) (17,200)
(20% x RM86,000) (17,200) (34,400)
Residual expenditure 51,600
Computation of computer capital allowance for YA 2020

RM RM
Full payment 8,000
Less:
(20% x RM8,000) (1,600)
(40% x RM8,000) (3,200) (4,800)
Residual expenditure 3,200
Less: Disposal value (4,000)
Balancing charge (800)

Computation of office equipment capital allowance for YA 2020

RM RM
Deposit 10,000
Full payment 50,000
60,000
Less:
(20% x RM60,000) (12,000)
(10% x RM60,000) (6,000) (18,000)
Residual expenditure 42,000