Escolar Documentos
Profissional Documentos
Cultura Documentos
FINAL EXAMINATION
SESSION II, ACADEMIC YEAR 2016/2017
MBAC 4163
TAXATION II
INSTRUCTIONS TO CANDIDATES:
1. The time allotted for this paper is 3 HOURS.
2. This question paper consists of FIVE questions.
3. Answer ALL questions.
4. This question paper requires:
i) Answer Booklet.
5. Total marks for this paper is 100 MARKS.
6. This question paper is ALLOWED to be taken out from the hall after the
examination.
CONFIDENTIAL
MBAC 4163 MARCH 2017
Question 1
Mr Zaki is the owner of a construction supplies business, Bangi Sdn Bhd. The
financial year ends on 31 December. The following are the assets used in the
business:
i. A facsimile machine was purchased on 25 May 2014 for RM 5,800. It was sold
on 1 February 2016 for RM3,200.
ii. A motor vehicle was bought in February 2013 for RM 118,000. The vehicle
was not licensed for commercial transportation and the Inland Revenue Board,
Malaysia has determined that only one-third of its usage was for business
purpose. On 24 October 2016, the motor vehicle was sold for RM 80,000.
iii. A lorry was acquired on 25 August 2015 under a hire-purchase terms for
which a deposit of RM 36,000 was paid. The cash price was RM 120,000. The
hire purchase consists of 48 installments of RM 2,030 per month. The first
installment commenced on 16 September 2014.
a. compute the capital allowances, balancing charges or allowances (if any) that
can be claimed by Mr Zaki for all the relevant years of assessment up to year of
assessment 2016. (16 marks)
b. explain what are the capital expenditures which can be regarded as qualifying
expenditure for the purpose of claiming capital allowance under Schedule 3 of
Income Tax Act 1967. (4 marks)
2 CONFIDENTIAL
MBAC 4163 MARCH 2017
Question 2
Berjaya Sdn Bhd (BSB), which has an accounting year ending on 31 December,
carries on manufacturing activities in its own factory complex, which comprises the
following:
Name Usage Year constructed Cost of
construction
(RM)
In 2015, a new factory named Block D was constructed by BSB on land adjoining the
complex and BSB commenced to use this new factory in its manufacturing business
on 1 November 2015. Details of the cost of Block D is as follows:
Details RM
Cost of construction:
The administrative office and showroom take up 20% of the factory space of Block D.
On 1 December 2015, Block B was demolished as it was found to be structurally
defective.
3 CONFIDENTIAL
MBAC 4163 MARCH 2017
a. calculate the industrial building allowance that Berjaya Sdn Bhd is entitled to
claim for the year of assessment 2015 and the resulting residual expenditure
carried forward to the year assessment of 2016 in respect of:
i. Block A (4 marks)
ii. Block C ( 3 marks)
4 CONFIDENTIAL
MBAC 4163 MARCH 2017
Question 3
Miss Jun bought a house at a price of RM 400,000 which has paid in full on
20 August 2006. The house was transferred to her on 1 January 2007. There was no
written agreement for the purchase of the house. Expenditure incurred on the house
were as follows:
Details RM
In June 2008, Miss Jun received RM10,000 from the insurance company for damage
to the roof of the house. In addition, he received RM5,000 as deposit from a potential
buyer who called off the deal eventually. The deposit was forfeited. The house was
subsequently sold under sale and purchase agreement dated 15 January 2010 for
RM800,000. Miss Jun incurred the following expenditure in connection with the sale:
Details RM
a. compute the real property gain tax payable by Miss Jun assuming she does
not want to claim exemption from private residence. (14 marks)
b. explain the changes if there was a written agreement date on 15 July 2016 for
the acquisition of the house by Miss Jun. (2 marks)
5 CONFIDENTIAL
MBAC 4163 MARCH 2017
c. state two conditions that must be satisfied for Miss Jun to qualify for the real
property gains tax exemption in respect of a private residence. (4 marks)
Question 4
Salsabila Holdings Bhd. has been involved in the business of manufacturing two
products since 2014. The company prepares its accounts up to 31 September each
year. On 1 January 2015, one of its product qualify as a promoted product and was
granted pioneer status effective from 1 January 2015. Information relating to taxation
for the year of assessment 2008 and 2009 is summarized below:
RM RM
Pioneer business:
Non-pioneer:
business/(loss) 100,000 (60,000)
Capital allowance 20,000 20,000
Other income:
You are required to compute the tax payable and exempt income (if any) for
Salsabila Holdings Bhd for the years of assessment 2015 and 2016. (20 marks)
6 CONFIDENTIAL
MBAC 4163 MARCH 2017
Question 5
7 CONFIDENTIAL
MBAC 4163 MARCH 2017
APPENDIX 1
8 CONFIDENTIAL