Taxation QUiz

The Income Tax Act 1967 is an act to tax income: that is why capital gains are not taxable under the said Act.

The above statement is:

• True

• False

• Sometimes false

• Sometimes true

Jasmine was sent by her American employer to work as a designer in Malaysia for the whole of the year 2020. Her total remuneration package for 2020 amounted to RM150,000, of which RM70,000 was paid to her in the USA while the remaining RM80,000 was paid to her in Malaysia.

State Jasmine's gross income from employment for Malaysian income tax purposes for the year of assessment 2020.

• RM80,000

• NIL

• RM150,000

• RM70,000

In 2020, Goode Business Sdn. Bhd. (GBSB) contributed RM50,000 (being 12% of the total remuneration of each of its employees for 2020) to the Employee Provident Fund.

State the amount of tax deduction that GBSB is entitled to in arriving at the adjusted income from its business for the year of assessment 2020.

• NIL

• RM50,000

• RM25,000

• RM10,000

'An employment can ONLY arise where the relationship of master and servant subsists'

The above statement is:

• True

• False

• True if the employer is a company

• True if the employer is a non-resident

In 2020, Mr. Ong, a sports equipment dealer, received orders for his goods amounting to RM2 million. By 31 December 2020, he will have issued invoices for RM1.8 million but will have collected only RM1.5 million in respect of those orders.

State the amount Mr. Ong should recognise as his gross income from his business for the year of assessment 2020:

• RM2 million

• RM1.8 million

• RM1.5 million

• NIL

On 7 December 2020, Jamal received a dividend of RM10,000 from Klever Sdn. Bhd., a company he founded on 1 February 2018.

State the amount of dividend income that Jamal should report in his income tax return form for the year of assessment 2020.

• RM10,000

• RM5,000

• RM1,000

• NIL

Timmy, an employee, received a bonus of RM27,000 on 1 February 2020 for outstanding achievement in sales in 2019.

Which of the following statement is true?

• Bonus is exempted

• RM27,000 is fully taxable in year of assessment 2020

• RM27,000 is fully taxable in year of assessment 2019.

• Only half of the RM27,000 is taxable in the year of assessment 2020.

Madam Aminah is a supplier of foodstuff. She made an allowance for doubtful debt of RM38,000 owing to her by Fast Food Sdn. Bhd (for the purchase of foodstuff) because the company experienced serious financial difficulties.

How much of the allowance of doubtful debt is tax deductible?

• RM3,800 per year

• RM19,000

• NIL

• RM38,000

On 1 August 2020 , Johan received interest income of RM3,500 from his fixed deposit with a licensed bank in Malaysia.

What is the amount of interest income that Johan should be taxable for the year of assessment 2020?

• NIL

• RM3,500

• RM1,750

• RM3,000

Johan receives a salary of RM100,000 a year and is provided with accommodation rent-free by his employer.

What is the amount you would use to compare with the rent paid by the employer for the accommodation provided to him for the year?

• RM10,000

• RM3,000

• RM30,000

• None of the above