B8AF123 Revision Questions

Identify which of the following statements correctly explains the difference between tax evasion and tax avoidance?

• Tax evasion: Minimisation of tax liabilities
  Tax avoidance:

  Money laundering

• Tax evasion:
  Money laundering
  Tax avoidance:

  Minimisation of tax liabilities

• Tax evasion:

  Overstating income

  Tax avoidance:

  Legal

• Tax evasion:

  Understating income
  Tax avoidance:

  Tax planning tool

Real Property Gains Tax (RPGT) is an example of direct or Indirect tax?

• Direct Tax

• Indirect Tax

Residence status of an individual in Malaysia is determine based on their (a)  

Romeo was offered 7,000 units of company shares at RM4 per share on 1 July 2021. He accepted the offer and exercised the options for all the shares when the market price was RM9 per share in 28 December 2025. The market price at the offer date was RM6. Compute the perquisite value to Romeo.

• 10,000

• 12,000

• 14,000

• 13,000

Determine the qualifying expenditure for a Nissan lorry that cost RM110,000.

• RM100,000

• RM50,000

• RM110,000

• RM55,000

Determine the qualifying expenditure for a second-hand toyota car cost RM30,000.

• RM50,000

• RM30,000

• RM100,000

• RM60,000

Determine the qualifying building expenditure (QBE) eligible for IBA claim for Rani Sdn Bhd.

• RM1.6

• RM1.7 m

• RM1.4m

• RM1.3

2 criterias for determination of an investment holding company are:

• Main activity is holding of investments

• Not less than 60% of the company’s gross income other than gross income from a source consisting of a business of holding of investment (whether exempt or not) is derived from the holding of those investments

• Not less than 80% of the company’s gross income other than gross income from a source consisting of a business of holding of investment (whether exempt or not) is derived from the holding of those investments

• Not less than 70% of the company’s gross income other than gross income from a source consisting of a business of holding of investment (whether exempt or not) is derived from the holding of those investments

How much is the maximum employer's EPF contribution rate can a company claim as deductible expenses in corporate tax computation?

• 11%

• 13%

• 19%

• 24%

For sales tax purposes, sales of manufactured goods in or between designated areas & special areas are subject to sales tax. True or False?

• False
• True