CONFIDENTIAL AC/JUL 2022/TAX267/TEST

UNIVERSITI TEKNOLOGI MARA

SUGGESTED SOLUTION
COMMON TEST

COURSE : TAXATION 1
COURSE CODE : TAX267
EXAMINATION : 9 JULY 2022
TIME : 1 HOUR 30 MINUTES

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 CONFIDENTIAL AC/JUL 2022/TAX267/TEST

QUESTION 1
YA Period of stay No. of days Status Section Reasons
2017 1/6 – 19/12 202 R√ 7(1)(a) √ Stay in Malaysia for at
20/12 – 31/12 [TA= 12] least 182 days √
Total: 202
2018 1/1 – 2/1 [TA= 2] R√ 7(1)(b) √ Stay in Malaysia for less
3/1 – 31/5 149 than 182 days √ but that
Total: 149 period is linked by at least
182 consecutive √ days in
2017 including TA.
2019 15/11 – 31/12 Total: 47 NR √

2020 1/1 – 15/3 75 R√ 7(1)(a) √ Stay in Malaysia for at

16/3 – 17/4 [Not TA= 33] least 182 days√
18/4 – 31/8 136
Total: 211
2021 1/4 – 2/7 Total: 93 R√ 7(1)(c) √ Stay in Malaysia for more
than 90 √ days and being
resident in 3 out of 4
immediate preceding
YAs√ (YA2020, YA2018 &
YA2017) or stay in
Malaysia for at least 90
days
(15√ x 1 mark = 15 marks)

QUESTION 2
A.
Factory
Expenditure RM
Cost of land Nil 
Architect fees 21,000 
Cost of obtaining approval from the local authority 5,000 
Cost of demolishing of the warehouse building on the land Nil 
Construction costs 982,000 
Total 1,008,000

10% rule
NIB area = Office and showroom (9% + 6% = 15%) > 10% of the factory building area.
Thus, cost of the NIB is not part of QBE. QBE is at 85%.

YA RM
2020 QBE (85% x 1,008,000) 856,800
Less: IA (10% x 856,800) (85,680)
AA (3% x 856,800) (25,704)
RE 745,416
2021 Less: AA (3% x 856,800) (25,704) 
RE 719,712

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CONFIDENTIAL AC/JUL 2022/TAX267/TEST

Plastic injection molding machine

RM
Cost of machine 400,000
Installation cost 20,000
Cost of preparing site (COPS) to install the machine 1,280,000
AGGREGATE COST 1,700,000

75% rule

% of COPS = 1,280 x 100 = 75.30% > 75% of the Aggregate Cost 

1,700
Thus, the aggregate cost of machine is QBE. 

YA RM
2020 QBE 1,700,000
Less: IA (10%  x 1,700,000) (170,000)
AA (3% x 1,700,000) (51,000)
RE 1,479,000
2021 Less: AA (3% x 1,700,000) (51,000) 
RE 1,428,000

Delivery truck

Monthly instalment = Cash Price – Deposit = 282,000 – 30,000 = 3,500 

No. of instalment 72

YA RM
2021 QPE - Deposit 30,000
- Instalment (Jan – Oct 2021: 3,500 x 10 months) 35,000
65,000
Less: IA (20% x 65,000) (13,000)
RE 52,000
Less: Insurance compensation 250,000
Balancing Charge 198,000

No clawback of capital allowances applied even though the disposal took place within
2 years after the acquisition, there is a valid commercial justification i.e. due to
damage.

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 CONFIDENTIAL AC/JUL 2022/TAX267/TEST

Furniture

Small Value Assets (cost per unit < RM2,000, restricted to RM20,000)
YA RM
2021 QPE [ 12,000 + 3,600 + (220 x 20 = 4,400) 20,000
Less: CA (100% x 20,000) (20,000) 
RE NIL

Balance of furniture @ normal rate

YA RM
2021 QPE 2,200
Less: IA (20% x 2,200) (440)
AA (10% x 2,200) (220) 
RE 1,540
(30 x 1/2 mark = 15 marks)

B.
Ramu Pineapple Farm Sdn Bhd (RPFSB)
QAE Clearing Planting of Godown Workers Temple
of land pineapples accommodation
Rate 50% 50% 10% 20% 20%
RM RM RM RM RM
QAE 50,000 200,000 80,000 120,000 280,000
YA
2018 AA 25,000 100,000
2019 AA 25,000 100,000 8,000 24,000
2020 AA 8,000 24,000 17,200
2021AC (grant) NIL
AA 8,000 x 24,000 x 17,200 x
219/365 = 219/365 = 219/365 =
4,800 14,400 10,320
AC 50,000 200,000 20,800 62,400 27,520
(disposal)

 Double storey house and Replanting of pineapples are not QAE. 

Alpha Agro Sdn Bhd (AASB)

QAE Godown Workers Temple
accommodation
RM RM RM
YA
2021 AA 8,000 – 4,800 24,000 – 14,400 17,200 – 10,320
= 3,200 = 9,600 = 6,880

(20 x 1/2 mark = 10 marks)

(Total: 25 marks)

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CONFIDENTIAL AC/JUL 2022/TAX267/TEST

QUESTION 3

Computation of total income for each partner for YA2021

RM RM
Net profit as per SOPL 18,700

+) Non allowable expenses

Depreciation 10,100√
Renovation of office premise 10,000√
Donations (25,000 + 10,000) 35,000√ 55,100
+) Partners’ private expenses
Salaries - Khadijah 108,000
- Melor 68,000
- Mamat 102,000
- Muthu 28,000 306,000√
Interest on capital - Khadijah 4,500
- Melor 2,000
- Mamat 3,000
- Muthu 700 10,200√
Medical expenses - Khadijah 8,000
Life insurance premium - Mamat 6,000
Travelling allowance - Muthu 1,200 15,200√
Provisional adjusted income√ 405,200
-) Partners’ private expenses
Partners’ salaries (306,000)
Partners’ interest on capital (10,200)
Partners’ private expenses (15,200)
Divisible income√ 73,800

Khadijah Melor Mamat Muthu

Divisible income (pre – 8 months) 39,360 4,920 4,920 -
Divisible income (post – 4 months) 17,220 - 3,690 3,690
56,580√ 4,920√ 8,610√ 3,690√
(+) Partners’ private expenses
Partners’ salaries 108,000 68,000 102,000 28,000
Partners’ interest on capital 4,500 2,000 3,000 700
Partners’ private expenses 8,000 - 6,000 1,200
Adjusted income from partnership √ 177,080 74,920 119,610 33,590
(-) capital allowance (8,400) (5,880)√ - (1,260) (1,260)√
Statutory income from partnership√ 171,200 74,920 118,350 32,330
(+) Other income
Adjusted rental income - 9,500√ - -
Aggregate income √ 171,200 84,420 118,350 32,330
(-) Approved donation
Khadijah: 20,000 (restricted to) (17,120)√ -
Melor: 2,500 (2,500)
Mamat: 12,500 (restricted to) (11,835)√
(restricted to 10% of AI)
Total income 154,080 72,420 106,515 32,330
(20√ x 1/2 mark = 10 marks)
(TOTAL: 50 MARKS)