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t1q Rca2 Ya2020 Intro & R

This document contains 6 questions related to Malaysian taxation for the tutorial Introduction to Malaysian Taxation & Tax Residence of Individuals. Question 1 asks about the Malaysian scope of charge based on sections of the Income Tax Act 1967. Question 2 asks about the purpose of public rulings issued by the Malaysian tax authority. Question 3 provides income amounts for different taxpayers and asks whether the income is chargeable to Malaysian tax. Questions 4 and 6 ask about distinguishing revenue and capital gains and differences in tax treatment between residents and non-residents. Question 5 provides details on an individual's stays in Malaysia and asks about their tax residence status and permitted temporary absences.

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Haananth Subramaniam
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47 views2 pages

t1q Rca2 Ya2020 Intro & R

This document contains 6 questions related to Malaysian taxation for the tutorial Introduction to Malaysian Taxation & Tax Residence of Individuals. Question 1 asks about the Malaysian scope of charge based on sections of the Income Tax Act 1967. Question 2 asks about the purpose of public rulings issued by the Malaysian tax authority. Question 3 provides income amounts for different taxpayers and asks whether the income is chargeable to Malaysian tax. Questions 4 and 6 ask about distinguishing revenue and capital gains and differences in tax treatment between residents and non-residents. Question 5 provides details on an individual's stays in Malaysia and asks about their tax residence status and permitted temporary absences.

Uploaded by

Haananth Subramaniam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY, FINANCE & BUSINESS


ACADEMIC YEAR 2020/2021
BACHELOR OF CORPORATE ADMINISTRATION (HONOURS)
BBFT2033 MALAYSIAN TAXATION

Tutorial 1: Introduction to Malaysian Taxation & Tax Residence of Individuals

Question 1

Discuss the Malaysian scope of charge based on Section 3 and Para 28 of Schedule 6 of the
Income Tax Act, 1967.

Question 2

Explain the purpose of a public ruling which is issued by the Director General of Malaysian
Inland Revenue Board.
(See www.hasil.gov.my: Laws and Regulations for the answer)

Question 3

The following chargeable person has Malaysian source of income and remittance of foreign
source of income for the basis year of 2020.

Foreign source of income


Chargeable persons Malaysian source of received / remitted to
income (RM) Malaysia (RM)
Encik Ali (Resident) 10,000 28,000
Ms Janet (Non-resident) 30,000 56,000
Satu Sdn Bhd (Resident co. but 120,000 200,000
Not in specialised business)
Gold Berhad (Resident co. in 730,000 800,000
specialised business)

Required:
Explain whether the Malaysian source and foreign sources of income are chargeable to
Malaysian tax for the year of assessment 2020.

1
Question 4

You are required to ascertain whether the following income is revenue gains or capital gains
and explain your reason(s):

(a) Mr. Tan has inherited an amount of RM8 million from his late father’s estate.

(b) AC Berhad made a gain of RM1 million from the disposal of a piece of land in Shah
Alam.

(c) Ms. Amy has entered a reality sport show and won RM100,000.

(d) XY Sdn Bhd is a trading company. It invested RM300,000 to purchase some listed
shares. In early 2020, it received dividend of RM20,000 from its investment in shares.
On 1 August 2020, it made a gain of RM60,000 from disposal of some of its shares.

Question 5

Joseph, a marketing consultant from New York was sent by his employer to Malaysia to be
the regional manager. For 2021, he is expected to be a tax resident in Malaysia. His records of
stay in Malaysia are as follows:-

Year Period of stay Place No. of days


2016 23 September to 31 December In Malaysia 100
2017 1 January to 30 October Not in Malaysia 303
1 November to 31 December In Malaysia 62
2018 1 January to 31 March In Malaysia 90
1 April to 13 April Korea (social visit) 13
14 April to 31 July In Malaysia 109
1 August to 31 December Not in Malaysia 153
2019 1 January to 30 April Not in Malaysia 121
1 May to 31 July In Malaysia 92
1 August to 31 December Not in Malaysia 153
2020 1 January to 31 December Not in Malaysia 365

Required:
(a) Determine Joseph’s tax residence status for the years of assessment 2016 to 2020,
stating the conditions and relevant provision of the ITA 1967 to support your answer;

(b) Explain what are permitted temporary absences for the purpose of Section 7(1)(b) of
the ITA 1967.

Question 6

The extent of an individual’s tax liability may be influenced by his/her residence status.

Discuss the above sentence. Support your discussion by identifying any THREE (3)
differences in tax treatment between a tax resident and a non-tax resident individual.

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