Professional Documents
Culture Documents
Question 1
Public Trust was formed on 1.2.2012. On 1.4.2012, it purchased an office building in KL
for RM56 million. The building was fully tenanted and the rent receivable per month was
RM 200,000. The trust also had the following interest income from Malaysian financial
institution and other sources of income for year ended 31 Dec 2012.
RM000
Interest received
300
Interest accrued
30
Interest receivable
10
340
Profit on sale of quoted shares
Profit on sale of shares listed overseas and
Remitted to Malaysia
Less: Loss on disposal of shares
300.
750
50
120
20
(10)
310
920
The following expenses were incurred for the building which it purchased for the period
1.4.2012 to 31.12.2012
RM000
Fire insurance
Cleaning and rubbish disposal
Assessment and quit rent
Security
Lift service charges
10
3
12
50
12
87
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100
10
200
50
20
40
10
430
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Included in the purchase price of the property were the following plant & machinery:
Fire protection system
Air conditioning system
Alarm system
Lifts
Generator
Refuse disposal system
RM000
700
2,000
100
3,000
200
20
6,020
Assume the rate of capital allowance of 14 % for plant and machinery, calculate the
income tax payable by Public Trust
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Solution 1
Public Unit Trust
Computation of income tax payable for YA 2012
RM000
RM000
S 4(d)
Gross rental (200,000 * 9 months)
Less: section 33 expenses
Adjusted income
Less: special deduction S 63A
10% * 6,020
Statutory income
S4c
Interest income exempted para 35A, Sch 6)
Dividend income (gross)
Exempt dividend
Overseas dividend (para 28, Sch 6, exempted)
Aggregate income
1,800
87
1,713
(602)
1,111
1,000
-
1,000
2,111.000
65.957
2,045.043
511.26
(250.00)
261.26
tutqunittrust
200
50
20
40
310
1,800
1,000
2,800
50
120
320
3,290
=
=
=
=
10% * 310
31 , whichever is higher Higher is RM65957
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Income:
Gross dividends from public listed companies
Gross dividends from private limited companies
Interest from Malaysian Government bonds
Interest from listed convertible bonds
Gain on realization of quoted shares
360
70
45
120
400
995
Expenses:
Salaries and wages
Fund managers remuneration
Travelling
Accounting and auditing
Subscription to business magazines
Rental expense
Share registration expenses
Stationery and postage
Utility expenses (electricity and water)
Maintenance of shareholders register
Secretarial fees
Loss on disposal of shares
Telephone and fax
Approved donation
Depreciation
58
80
12
27
4
116
2
5
13
9
6
18
7
13
16
(386)
Net profit
609
Required:
Compute the tax payable by Mayfair Bhd for the year of assessment 2012
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BM000
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Solution 2
Mayfair Bhd
Computation of tax payable for YA 2012
RM. ' 000
Gross dividends from public listed companies
Gross dividends from private limited companies
Deemed total income
360
70
430
120
(19)
(12)
89
519
129.75
107.50
22.25
80
27
2
9
6
7
5
(A)
136
(B)
550
45
400
(C)
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995
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Question 3
AmInvest (Am) is approved by SC to invest in RP and securities. It is an approved REIT
as stated in S61A of ITA. The Income statement for year ending 31.12.2012 is as
follows:RM000
Income
Rental income (gross)
700
Dividend income (gross) Note 1
20
Dividend income (exempt)
12
Debenture interest (not exempt)
4
Gain from realization of securities
44
780
Expenses
Rates and assessment
40
Maintenance of buildings
100
Salaries and allowances
40
Interest expense on loan to acquire shares
10
Depreciation
10
Telephone, printing
10
Donation to approved charity
4
Maintenance of register of shareholders
4
Audit, accounting and tax services
8
Advertising and promotion
40
Managers remuneration
184
450
Net profit
330
Notes:
1.
Dividend income is derived from Malaysia and suffered a tax of 25 %
2.
Capital allowance for the year is RM 12,000.
Required:
i)
ii)
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Solution 3 - REIT
Computation of tax payable of AmREIT for YA 2012
Section 4a
Net profit before tax
Less:
Dividend income (gross)
330
20
12
20
Less:
Interest expense on loan to acquire shares
Adjusted income
Debenture interest (not exempt)
Aggregate income
Less: approved donations
Total income
a) Less: Distribution to unit holders ( >90%)
Chargeable income
Tax payable
Less: s110 tax credit on dividend income
Tax refund
b) If distibution is RM 100,000 ie <90%
Chargeable income = total income
tax payable
Less: s110 tax credit on dividend income
Net tax payable
4
44
-80
10
10
4
274
12
262
10
10
4
276
4
272
272
0
0
5
5
272
68
5
63
Am need not withhold any tax when distributed to a resident company s 109D (2). It is
a final tax to the company.
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