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1. Forever Sdn Bhd (a company with 31 December year-end and paid-up capital of RM4 million) has been carrying on its business since the year 2003. As at 17 December 2009, the company purchased a photocopy machine and uses it in its business on 21 March 2010. The year of assessment and the rate of annual allowance that the company can claim capital allowance is:A. Year of assessment 2009 @ 10% B. Year of assessment 2009 @ 40% C. Year of assessment 2010 @ 10% D. Year of assessment 2010 @ 40% Answer: D 2. An individual can qualify for tax resident status in Malaysia for the basis year for a year of assessment 2010 if:i) He is in Malaysia for a period of 101 days in the basis year 2010 and stayed in Malaysia in the basis year 2006 (95 days), basis year 2007 (183 days), basis year 2008 (30 days) and basis year 2009 (153 days).

ii) He is in Malaysia for a period of 200 days. iii) He is in Malaysia for 30 days and that period is linked by the basis year 2009 of 172 consecutive days (total of 202 days). A. B. C. D. (i) and (iii) (i) and (ii) (ii) only All of the above

Answer: B 3. DeloitteBest Pte Ltd (Singapore) has provided technical services to its Malaysian subsidiary, DeloitteBest Sdn Bhd (services rendered on 4 January 2011). As at 29 March 2011, DeloitteBest Sdn Bhd paid DeloitteBest Pte Ltd the technical fees of RM250,000. When is the due date for the company to remit the withholding tax to the Inland Revenue Board (IRB). A. B. C. D. 3 February 2011 4 February 2011 28 April 2011 29 April 2011

Answer: C

4. Which of the following expenses do not qualify for an income tax deduction? i) ii) iii) iv) A. B. C. D. Rental of office Entertainment for potential client Secretarial fee Statutory audit fee (i) and (iv) (iii) and (iv) (ii) and (iii) (ii) and (iv)

Answer: C

5. Which of the following entertainment expenses does not qualify for income tax deduction?
i) ii) iii) iv) Entertainment for annual general meeting of company. Cash contribution for existing clients annual dinner. Free trip as an incentive to sales agent for achieving the sales target. Entertainment given to potential or existing customers during the launching of companys new product

A. B. C. D.

(i) and (ii) (i) and (iii) (ii) and (iii) (iii) and (iv)

Answer: A

6. The Company is entitled to declare single-tier dividend if:i. ii. iii. iv. The company commences business in the basis period for the year of assessment 2008. Section 108 balance is fully utilized as at any date. Company exercises an irrevocable option to forego its Section 108 balance. Section 108 balance is NIL due to tax discharge, remittance or refund for the assessments prior to the year of assessment 2008. (i), (iii) and (iv) (i) (ii) and (iii) (ii), (iii) and (iv) (i), (ii), (iii) and (iv)

A. B. C. D.

Answer: D

7. A company recently submitted a revised Form C for the year of assessment (YA) 2009 to claim for an Investment Tax Allowance (recently approved on 20 October 2010 with its commencement date of 18 April 2009). Which of the following circumstances is correct? A. The Inland Revenue Board (IRB) will process the revised Form C and issue Form J for YA2009. B. The Inland Revenue Board (IRB) will process the revised Form C and issue Form JA for YA2009. C. The company needs to request for refund right after the revised Form C is submitted. D. The application for refund is submitted upon the receipt of Form JR from IRB. Answer: D 8. Which of the company below qualifies for reinvestment allowance (RA)? A. TaxIsBest Sdn Bhd, a trading company, undergoing an expansion program to increase its size of operations. B. A Hotel Sdn Bhd replaced its whole computer system. C. TellerCo Sdn Bhd expanded its factory to increase its production capacity. D. Extensive promotion programs by Ehsan Sdn Bhd to promote its new products. Answer: C 9. Extro Berhad is an investment holding company listed in Bursa Malaysia. Which of the following tax treatment is correct for Extro Berhad? i) Permitted expenses calculation is applied in the income tax computation.

ii) Rental, dividend and interest income are treated as income from a business source. iii) Capital allowances are allowed as a deduction against the adjusted income from each source of income. A. B. C. D. (i) only (i) and (ii) (ii) and (iii) All of the above

Answer: C

10. What is the net tax impact for the movement of Provision for Repair and Maintenance Account as shown below:-

RM Balance b/f Add: Provision for the year Less: Reversal of provision Less: Payment for the year Balance c/f
A. B. C. D.

5,600 6,000 (3,500) (1,600) 6,500

Added back RM6,000 from the income tax computation. Added back RM900 from the income tax computation. Deduct RM1,600 from the income tax computation. Added back RM2,500 from the income tax computation.

Answer: B