SUNWAY COLLEGE

Diploma in Accounting
TX 4013 Principle of Taxation

Tutorial 8 : Tax Administration

Question 1

Miss Vivian, a newly employed Head of Diploma Studies at Starway College at Puchong,
Selangor is unsure of her duties and responsibilities as a taxpayer.

Required:

List the duties and responsibilities of a taxpayer

Question 2

Mr. Tom had an employment income in Malaysia and is chargeable to tax for the Year of Assessment
(YA) 2019. He received a tax return for YA 2019 from the Director General of Inland Revenue Board
(IRB) on 14 February 2020.

(a) State the time frame and the last date for him to submit his tax return (as above) to the IRB;

(b) With effective from YA 2004, individuals are under the self-assessment system.
Explain whether assessments will be issued based on the tax returns submitted to the IRB.

(c) What can be the consequences on Mr. Tom if he were to fail to submit his tax return back to
the IRB within the stipulated time?

Question 3

Mr. Alvin runs the family retail business. He also works part-time as an accountant with
a manufacturing company drawing a salary of RM3,500 a month. He wants to know
more about the self-assessment system.

REQUIRED:

Explain to Mr. Alvin, with respect to the self-assessment system for individuals,
the following:

(i) The deadline for submitting his tax return for the year of assessment 2019.

(ii) The deadline for submitting his tax return for the year of assessment 2019 if he
did not have the retail business source.

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(iii) How the tax payments will be made with respect to his employment income and
business income.

(iv) The penalty for late payment of tax instalment payments.

(v) The due dates for paying the balance of any tax due.

(vi) The basis period for Mr. Alvin’s business for the year of assessment 2019.

Question 4

The Inland Revenue Board (IRB) issued a Notice of Instalment Payment to Mr Andrew in
February 2019. The IRB has estimated his tax liability for year of assessment 2019 to be
RM800,000.

However, according to Mr Andrew, his estimated tax liability for year of assessment 2019 is
only RM440,000. He requested for a variation of the instalment scheme. The IRB agreed and
issued an amended Notice of Instalment Payment to him.

The final tax liability for Mr Andrew for year of assessment 2019 is RM700,000.

Required:

(i) List the date which any request for variation of instalments must be made by him for
year of assessment 2019.

(ii) Compute the penalty (if any) for the excessive difference in tax payable arising from
the variation in instalment payments.

Question 5

Explain two obligations of employees under the Self-Assessment System.

Question 6

For this question, download the Form E sample from the IRB website and try to fill the
form

Sheila has the following income for the year ended 31 December 2020.

RM

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 Statutory income from a sole proprietor business 25,000

Statutory income from employment 86,000

Statutory income from rental of a house located in Melaka 36,000

Interest income from a deposit in a Singapore bank 8,000

Approved donation (cash) 6,000

Unabsorbed loss from the sole proprietorship business (12,700)

Required:

State the amount to be inserted in boxes B1 to B5 and B6 to B11 of the tax return, Form B of

Sheila for the year of assessment 2018.

Note: Indicate ‘0’ if there is no amount to be inserted in the boxes.

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 RM

B1 Business

B2 Partnership

B3 Aggregate statutory income from business (B1 +B2)

B4 Less business loss brought forward (restricted to B3)

B5 Total (B3 – B4)

B6 Employment

B7 Rental

B8 Interest, discount, royalty, periodical payments, annuity

and others

B9 Aggregate income (B5+B6+B7+B8)

B10 Less: current year business loss (restricted to B9)

B11 Less : Donation

B12

Question 7

(a) Jacqueline is a widow. She is resident in Malaysia. For the year ended 31 December 2019, her
income is as follows:

RM
Employment income 38,000
Interest from PublicBank Berhad 2,500
Dividend (single tier) 2,000
Adjusted rental income 29,800

Jacqueline claimed RM14,000 relief for the above period.

Required:

Compute Jacqueline’s chargeable income for the year of assessment 2019.

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 (b) Below is an extract from page 2 of the e-BE form for the year of assessment 2019 of
Jacqueline.

CHARGEABLE INCOME B1
B2 Tax on the first At Rate
B2b Tax on the (%) balance
B2a
B2b
TOTAL INCOME TAX B3
LESS: TOTAL REBATE

B4a Self B4b Husband/Wife B4c Zakat and Fitrah

Required:

In your answer booklet, state the amounts that would be entered in boxes B1, B2, B2a,
B2b, B3, B4a, B4b, B4c and B5. Indicate ‘0’ if there is no amount to be inserted in the
box.