Taxation II - Chapter 1 Business Expenses

In general, which of the following is tax deductible?

• Domestic expenses

• Entertainment

• Bad debts (trade)

• Lease rental

Which Section of the Income Tax Act 1967 below prescribes the prohibited deductions?

• Section 33

• Section 34A

• Section 39

• Section 40

Which Section of the Income Tax Act 1967 below prescribes the allowable deductions?

• Section 33

• Section 34A

• Section 39

• Section 40

Which of the following is NOT a test to distinguish a revenue expense from a capital expense?

• Once and for all test

• Gain or loss test

• Enduring benefit test

• Identifiable asset test

Which of the following is an allowable tax expense?

• Loss of cash by theft or embezzlement by an employee.

• Irrecoverable employee loans by a company.

• Ms Minnie, a casher embezzled cash collections of RM12,000. When Ms Daisy, a new director discovered this, the sum was claim as loss by embezzlement in the statement of profit or loss.

• Mr Pluto, suffered a loss of RM5,000 in his coffee shop business when his brother, who was an employee, stole the money. Mr Pluto claimed the loss but no action was taken against the brother for the recovery of the loss.