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Tutorial CA+IBA

The document consists of multiple questions related to tax calculations for different companies, including HS Sdn Bhd, Uranus Manufacturing Sdn Bhd, and Kaykaboo Sdn Bhd. Each question requires the calculation of capital allowances, industrial building allowances, and balancing charges or allowances for various assets owned by the companies. The questions cover different scenarios and assets, including machinery, vehicles, and factory buildings, with specific financial details provided for each case.

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4 views5 pages

Tutorial CA+IBA

The document consists of multiple questions related to tax calculations for different companies, including HS Sdn Bhd, Uranus Manufacturing Sdn Bhd, and Kaykaboo Sdn Bhd. Each question requires the calculation of capital allowances, industrial building allowances, and balancing charges or allowances for various assets owned by the companies. The questions cover different scenarios and assets, including machinery, vehicles, and factory buildings, with specific financial details provided for each case.

Uploaded by

sarahverasinik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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QUESTION 1 (FA TAX267 FEB2023)

A. HS Sdn Bhd has been carrying on a business of manufacturing food and beverage
for sale in Malaysia since 2014. The company closes its account on 31 December
annually. The following are assets owned by the company:

Machine
The machine was acquired on 1 January 2020 for RM85,000 and incurred the cost
of installation of RM7,000. On 1 December 2022, the company sold the machine for
RM55,000 due to usage inefficiency.

Car
The company purchased a new Toyota Camry under a hire purchase agreement in
March 2021. The car was not licensed for commercial transportation. The cash price
of the car was RM115,000. The deposit of RM25,000 was paid on 31 March 2021,
and the monthly installment of RM4,000 will be paid for 24 months commencing from
30 April 2021.

Factory
In July 2020, the company incurred a cost to renovate an old factory building of
RM350,000, which includes RM15,000 for the cost of demolishing the old office
building. The renovation was completed on 1 December 2020, and the building was
fully used as a factory.

Dining Table Set


On 15 May 2022, the company purchased 11 dining table sets for business use. The
cost of one (1) unit of dining table set was RM1,950.

Required:

Calculate the capital allowances, industrial building allowance, balancing charge, or


balancing allowance (if any) for each asset of HS Sdn Bhd for all relevant years of
assessment up to year of assessment 2022. Round off your answers to the nearest
RM.
(19 marks)
QUESTION 2 (CT TAX267 JAN2023)

A. Uranus Manufacturing Sdn Bhd was incorporated on 1 January 2020 and made up
its account to 31 December each year. The company bought a piece of land for the
purpose of constructing a factory. The following expenses were incurred to
construct the factory.

Expenditure RM
Land 170,000
Legal fee (RM7,000 was related to land) 20,000
Stamp duty for purchase of land 3,500
Demolishing an old factory 25,000
Architect’s fee 22,000
Approval of plan – local authority 5,000
Construction cost 340,000
In September 2020, it completed the construction of its factory. 6% of the total
floor space of the factory building was used as office and 5% for showroom.

The company also acquired the following assets:

1. BMW X1 (passenger car)


Cash price: RM220,000
Deposit: RM80,000 (paid on December, 2020)
Monthly instalment: RM2,700
No. of instalment : 56 months (commenced on 15 December 2020)

2. An industrial shredder machine costing RM36,000 was bought on 1 November 2021.


On 30 November 2022, the machine was sold for RM22,000 without commercial
justification.

3. On 15 August 2022, a set of Nordic solid wood dining table purchased for personal
use was brought into the business. The market value and net book value were
RM3,550 and RM2,500 respectively.

Required:

Compute the capital allowance, industrial building allowance, balancing allowance or


balancing charge (if any) for each asset of Uranus Manufacturing Sdn Bhd for all
relevant years of assessment up to year of assessment 2022.
(17 marks)
QUESTION 3 (FA TAX267 JUL2023)

A. a. Kaykaboo Sdn Bhd is engaged in the manufacturing of pillows for the domestic and
foreign market for several years. The company closes its account on 31 December
annually.

Due to the expansion of its business, on 10 January 2020, the company


purchased a new building for RM1,100,000. Kaykaboo Sdn Bhd used 8/9 of
the built-up area as a factory and the balance is used as an office.

On 12 February 2020, Kaykaboo Sdn Bhd acquired a motor vehicle (which


was not licensed for commercial vehicle) under hire purchase for business
purpose. The cash price was RM147,600. The company traded its old non-
commercial vehicle for RM36,000 and agreed to pay a monthly installment
of RM3,500 for 36 months commencing on 28 March 2020.

In June 2021, the company rented an adjacent building with a monthly rental
of RM4,000 per month to be used as a storage of goods for export. The
company incurred RM55,000 to renovate the building.

On 8 July 2021, the company purchased a computer costing RM3,200. The


computer was completely damaged by lightning and the company decided
to dispose the computer on 20 December 2021. The Inland Revenue Board
of Malaysia accepted the reason for the disposal.

Required:

Calculate the capital allowance, industrial building allowance, balancing


charge or balancing allowance (if any) for each asset of Kaykaboo Sdn Bhd
for all relevant years of assessment up to year of assessment 2021.
(13 marks)
QUESTION 4 (CT TAX267 JUL2022)
QUESTION 5

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